Ed Dept issued an update on the SAVE plan (student loan): https://www.ed.gov/higher-education/man ... /save-plan
As a result of pending litigation, it looks like those who enrolled in this plan in order to reduce loan payments have been in forbearance and will continue to be in forbearance until December 2025. That's the good news. The bad news is the forbearance period will not be counted toward loan payment forgiveness. Thus, those hoping to be fully paid under PSLF (public service) after ten years are in limbo at the moment. The update also mentions the possibility, at some uncertain point in the future, of a "buy back" program, where the loan recipient may be able to buy back some months during the forbearance period. Of course, all of that is totally uncertain. In addition, the update says the recertification process, where you submit proof of income to determine loan payments, will begin again starting February, 2026.
DIL has substantial student loans, works in the public sector, and is in the SAVE program. The tax filing game plan, per info gleaned last year, was to alternate filing MFJ, then MFS, then MFJ, then MFS. The idea was to recertify using the latest MFS tax filing in order to keep loan payments reasonable. Since DIL and spouse (DS) filed MFJ last October, the plan was to file MFS in early Feb, then recertify this March using the MFS filing as proof of income. The current forbearance period and non-certification has changed the plan.
I am assuming they should file MFJ this year (2024 tax filing) since she no longer has to recertify this year. Presumably, since DIL only needs to recertify next Feb/March period, she can file MFS next Feb and use that tax return on her recertification.
Does this make sense?
If anyone has any useful info on what's likely to happen with the SAVE plan, the possible "buy back" program, and getting credit toward PSLF, I would greatly appreciate it. It's tough making plans when everything is uncertain.
As a result of pending litigation, it looks like those who enrolled in this plan in order to reduce loan payments have been in forbearance and will continue to be in forbearance until December 2025. That's the good news. The bad news is the forbearance period will not be counted toward loan payment forgiveness. Thus, those hoping to be fully paid under PSLF (public service) after ten years are in limbo at the moment. The update also mentions the possibility, at some uncertain point in the future, of a "buy back" program, where the loan recipient may be able to buy back some months during the forbearance period. Of course, all of that is totally uncertain. In addition, the update says the recertification process, where you submit proof of income to determine loan payments, will begin again starting February, 2026.
DIL has substantial student loans, works in the public sector, and is in the SAVE program. The tax filing game plan, per info gleaned last year, was to alternate filing MFJ, then MFS, then MFJ, then MFS. The idea was to recertify using the latest MFS tax filing in order to keep loan payments reasonable. Since DIL and spouse (DS) filed MFJ last October, the plan was to file MFS in early Feb, then recertify this March using the MFS filing as proof of income. The current forbearance period and non-certification has changed the plan.
I am assuming they should file MFJ this year (2024 tax filing) since she no longer has to recertify this year. Presumably, since DIL only needs to recertify next Feb/March period, she can file MFS next Feb and use that tax return on her recertification.
Does this make sense?
If anyone has any useful info on what's likely to happen with the SAVE plan, the possible "buy back" program, and getting credit toward PSLF, I would greatly appreciate it. It's tough making plans when everything is uncertain.
Statistics: Posted by JazzTime — Sat Jan 18, 2025 1:21 pm — Replies 1 — Views 171