At Rhino, affordability and financial flexibility are at the heart of our mission. With student loan repayments restarting for over 44 million people this month, we wanted to make sure that our customers have the information needed to make the best decision for their personal situation. In this blog post, we will discuss the basics of the program and provide you with resources to help deepen your understanding.
The SAVE program, known as 'Saving on a Valuable Education,' is designed specifically for federal student loan borrowers in need of assistance in repaying their debt. In fact, borrowers who sign up for SAVE could eventually see their payments reduce by as much as half. It is available to those who have lost their jobs or had a significant decrease in income due to the economic crisis caused by the pandemic. This program can help you keep your student loan payments affordable and help protect your credit score.
Enrolling in the SAVE program is simple and straightforward. To begin, visit the Federal Student Aid website to complete an application. You will need to provide your latest tax information and a statement that you have experienced a reduction in income because of the COVID pandemic. Once you have submitted your application for the SAVE program, the servicing company will review and process it. Once you are accepted, your new monthly payments will be calculated based on your income, family size, and other factors.
Under the SAVE program, you may also qualify for loan forgiveness after 20 to 25 years of debt repayment. The amount forgiven will be taxable income in the year it is forgiven. However, it provides considerable relief to borrowers who are struggling to repay their student loan debt.
It's important to note that not everyone will qualify for the SAVE program. For example, if your income is too high or you are not eligible for a hardship deferment or any other income-driven repayment plan, you will not be able to participate in this program. If you are unsure of whether you qualify, reach out to your loan servicer or financial aid office.
If you're looking for help managing your student loan debt, the SAVE program is an excellent option. By enrolling in this program, you can significantly reduce your monthly payments and, in some cases, qualify for loan forgiveness. Resources such as Civic Nation and the Financial Aid Toolkit can provide additional information about this program. Don't wait to sign up for the SAVE program and get the relief you need today.