SAVE benefits available by July 2024 (on hold due to lawsuits) Monthly bills halved. Payments on undergraduate loans will be cut in half, from 10% to 5% of income above 225% of the poverty line. Consolidation penalty lifted.
There is no income limit to be eligible for the Saving on a Valuable Education (SAVE) Plan. To determine if you would qualify for a lower monthly payment amount under the SAVE Plan, check out Loan Simulator or contact your loan servicer.
Early Forgiveness and Other Benefits in 2024. Payments on undergraduate loans will be cut in half (reduced from 10% to 5% of income above 225% of the poverty line).
SAVE is an income-driven repayment (IDR) plan, which means that it calculates your monthly payments based on your income, rather than how much you owe. Starting in July, borrowers with undergraduate loans only will see their monthly SAVE payments cut in half, from 10% down to 5% of their discretionary income.
But the SAVE Plan has some limitations: The plan doesn't have a cap on how high payments can be, so some people with incomes that are high compared to their loan balance would pay more on the SAVE Plan than they would on the Standard Repayment Plan.
You don't get reported when you're in forbearance. During the on-ramp period (through Sept. 30, 2024), we automatically put your loan in a forbearance for the payments you missed. Here's what this means: Your account was no longer considered delinquent and was made current.
A federal court issued an injunction preventing the U.S. Department of Education from implementing parts of the Saving on a Valuable Education (SAVE) Plan and other IDR plans. Note: Eligible borrowers may now enroll in PAYE and ICR Plans. We will continue to update StudentAid.gov/saveaction with more information.
For 2024, eligible taxpayers can contribute $23,000 to their 401(k) account and that is up from $22,500 in 2023. The limit on catch-up contributions for 401(k) plans for 2024 is $7,500 — the same as it was in 2023, bringing the total elective deferral contribution limit to $30,500.
We expect moderating shelter inflation in 2024 as the lag in market rents pricing should catch up in the inflation readings. We forecast core PCE prices—the Fed's preferred inflation metric—to rise 2.4% in 2024, down from 3.4% in 2023.
If you have a mix of Direct Loans and non-direct like FFEL/Perkins, you MUST consolidate your FFEL/Perkins to access SAVE and forgiveness programs.
Most borrowers won't need to reapply annually. Autorecertification will prevent you from missing your required annual IDR recertification date. You can also manually provide your income information. Review your plan options.
Parent PLUS loans can potentially be forgiven after 10 years under specific conditions, such as through the Public Service Loan Forgiveness (PSLF) program after consolidation into a direct consolidation loan. Parent borrowers must enroll in the Income-Contingent Repayment (ICR) plan to qualify for PSLF.
More borrowers in the SAVE plan are eligible for $0 payments. This plan won't require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person. The cutoff for other plans, by contrast, is 150% of the poverty line, or $22,000 a year for a single person.
The COLA was 3.2% in 2024. Nearly 68 million Social Security beneficiaries will see a 2.5% COLA beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024. (Note: Some people receive both Social Security benefits and SSI payments).
The SAVE plan is an income-driven repayment (IDR) plan that calculates payments based on a borrower's income and family size – not their loan balance – and forgives remaining balances after a certain number of years.
For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
Safe Harbor contribution limits
In 2024, the basic employee deferral limits for a Safe Harbor plan are the same as any employer-sponsored 401(k): $23,000 per year for participants under age 50, and $30,500 when you include catch-up contributions for employees over age 50 or older.
Maintain your current lifestyle in retirement
For most people, having around 70% of their current take-home pay, is the amount of money they need in retirement to keep the lifestyle they have now. To work out how much you might need, this is a good place to start.
Under the SAVE plan, sub-baccalaureate borrowers, similar to low-income borrowers, are likely to benefit from considerable loan forgiveness. This is driven by a greater share of income being protected – resulting in lower monthly payments, increased liquidity, and lower total payments overall.
Compared with prior IDR plans, the SAVE plan reduces payments and includes a new benefit that cancels unpaid monthly interest rather than allow a borrower's balance to increase when required payments do not cover accruing interest.
You have been placed into a forbearance because your servicer is not currently able to bill you at the amount required by a recent court order. Borrowers will be in this forbearance until servicers are able to send bills to borrowers at the appropriate monthly payment amount.
Beginning on July 1, 2024, borrowers enrolled in the SAVE plan will owe the following monthly payments: 5% of a borrower's income above 225% of the Federal Poverty Line (FPL) if they only have undergraduate loans (ie, monthly payment = 0.05 x (monthly income – 225% FPL for the month);
A federal court issued an injunction preventing the U.S. Department of Education from implementing parts of the Saving on a Valuable Education (SAVE) Plan and other IDR plans, including— for example— SAVE's monthly payment formula and loan forgiveness under SAVE, PAYE, and ICR plans.
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.