The SAVE plan is an income-driven repayment (IDR) plan that calculates payments based on a student loan borrower’s income and family size — not their loan balance — and forgives remaining balances after a certain number of years. Get more info and apply here.
So, what’s new? The SAVE Plan significantly decreases monthly payments by increasing the income exemption from 150% to 225% of the poverty line; the plan eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made, and the SAVE Plan excludes spousal income for borrowers who are married and file separately.
Gov. Gretchen Whitmer announced that student loan relief would not be treated as taxable income in Michigan. Roughly 1.4 million Michiganders eligible for relief will not owe any state taxes for receiving benefits of the Public Service Loan Forgiveness (PSLF) program or other student loan forgiveness.