I just applied to SAVE, I'm looking to rid myself of the interest of payments. Looks like my payments would be around 61 dollars a month interest taken care of? Can I still make manual payments 100% principle to the remaining amount? Say I pay what I owe from the plan $61 that month and I have an extra $100 bucks to throw at it would I be able to?
Seems too good to be true basically canceling any interest.
Though a longer payoff date, you could essentially have the same date as your regular loan service payment completeion if you continue manually what your normal amount was through the month?
Am I leaning into this at the wrong angle?

This post was edited by lolkggz on Nov 30 2023 04:06pm

1. Be debt-free
2. No need to worry about interest rates
3. ???
4. Profit

Appreciate such insightfulness.

This post was edited by lolkggz on Nov 30 2023 05:14pm

I am 70/30 certain that excess payment on SAVE get applied first to unaccounted for interest and then to principal, without a direct route to pay principal. You can prioritize which specific loan to pay first ie if you have multiple can choose to pay higher rate loan first.

This is off memory, easiest way I can think of is to call and ask them or try to make a payment directly to principal and see what happens

Reddit has a few threads on this too it looks like

I applied for it, when I get it I'm going to try and see how it works and if it doesnt in my favor I'll just sign off it.
I was told from another source you can pay manually and time it immediately when the subsidy gets applied.
I'm just trying to eek out a win here.

This post was edited by lolkggz on Nov 30 2023 09:10pm

Goodluck sir

Looks like someone was using this strategy before with a bit more digging into it.
I appreciate your input, helped me dig a bit further.



This post was edited by lolkggz on Dec 1 2023 11:44am

Update on this, this month was the first payment from the SAVE plan, my interest was paid in full by you wonderful tax payers/government as soon as that was processed I made a $400 payment on one of my loans. My manual payment went in pure principle.
Looks like you can win from time to time.

Here's to no interest!



This post was edited by lolkggz on Jan 12 2024 06:19pm

nice glad it helped you! i know what it feels like when the gov steps in a bit and helps (i used financial aid for college) which was a huge help. in fact, i still have the $300~ cashed in my bank from 2014. i got my books online instead of purchasing lmao, saved me a lot back in the day

This post was edited by ChocolateCoveredGummyBears on Jan 12 2024 06:22pm

I've never taken a handout from them, but this offer was to good to refuse.
Why would I just throw money out the window every payment when I could keep it in my pocket?
I don't know if this is how it was intended to work, because I can afford my regular payment with interest.
I applied with no expectations of my plan working, but it did... I'll take it.

This post was edited by lolkggz on Jan 12 2024 06:21pm