US EditionAs student loan interest restarts for SAVE plan borrowers, some are feeling ‘crushed’
UNITED STATES, AUG 5 – Nearly 8 million federal borrowers on the SAVE plan face renewed interest accrual after a yearlong pause, with typical monthly costs rising by about $300, advocacy groups said.
- The Department of Education resumed interest charges for student loan borrowers in the Saving on a Valuable Education plan, affecting many after a long pause, around July 1.
- Legal challenges arose when two federal judges ruled against the Saving on a Valuable Education plan, after a federal court decision blocked key parts of SAVE.
- Recent data show that 71% of borrowers report delays in major life events as interest resumed recently, according to the Student Borrower Protection Center.
- The Department of Education is urging borrowers to enroll in another payment plan, as SAVE enrollees are currently in zero-interest forbearance to pause payments.
- Future policy changes will move SAVE enrollees into the Repayment Assistance Plan, which will replace existing IDR options and affect 7.7 million borrowers after July 1, 2028.
56 Articles
56 Articles
Millions of federal student loan borrowers encounter major changes. Here's what to know
If you’ve got federal student loans, there are some big changes you need to know about. Interest has started up again for millions of borrowers, and for many, the first step is figuring out where their loans stand. Here’s what to do and how to stay on track. Almost 8 million Americans are enrolled in the SAVE repayment plan. Interest on those loans has started again, ending a yearlong pause. However, the payments are still on hold for now. This …
Trump's student-loan repayment overhaul could push borrowers out of the federal system. Democratic lawmakers want to know if private lenders are ready.
Sen. Elizabeth Warren has urged the OCC to impose growth restrictions on Citi.Tom Williams/CQ-Roll Call via Getty ImagesTrump's student-loan repayment overhaul could drive borrowers to the private market.Democratic lawmakers asked private lenders how they're preparing for the potential influx.Private student lenders have faced accusations of predatory behavior that drove borrowers into unaffordable debt.Private student lenders are on track for s…
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