Here’s some tips that you may want to be aware of:
- A new consolidation will always provide an initial payment based upon the 10 year standard. A client today reported her payment was to be $2,000! She knew not to be concerned however because the SAVE review hadn’t yet occurred. It’s a two step process: first, consolidation, then evaluation for SAVE.
- Second, SAVE allows you to file a separate income tax return, but most people haven’t done that for 2022. So if your payment is high now because your spouse has a high income, you could ask for a short forbearance until January and then quickly file your married filing separate tax return.
- SAVE will permit a 5% of discretionary payment next July 2024 for undergrad loans. That alone will shrink your payment by 50% if you have solely undergrad loans.
- If you receive large annual or even quarterly bonuses, you can use alterative pay information such as paystubs to certify your income.
- You can still use your pre-covid income if it was less, as the requirement to recertify your income isn’t until 2024.