US EditionEducation Department restarts interest accrual for borrowers on SAVE plan
UNITED STATES, JUL 9 – Nearly 8 million borrowers will face resumed interest charges on SAVE plan loans, potentially adding $3,500 annually, following a court ruling affecting the forbearance pause.
- On Wednesday, the U.S. Department of Education announced interest charges will restart on August 1 for nearly 8 million borrowers in the SAVE plan after a court-ordered pause.
- Prompted by the February court ruling, lawsuits by Republican-led states broadened the pause order, forcing the resumption of interest charges on nearly 8 million SAVE plan borrowers in July 2024.
- Nearly 8 million borrowers will see interest resume on August 1, potentially adding about $3,500 annually per person, according to SBPC analysis.
- The Education Department will contact nearly 7.7 million SAVE plan enrollees with payment guidance as interest resumes on August 1, urging plan-switches amid legal uncertainties.
- Beyond now, courts are expected to rule on the SAVE plan's future soon, while a July 4 law sets a July 2028 deadline for borrower plan switches.
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Oregon Capital ChronicleUS Education Department to revive student loan interest for borrowers in SAVE program
The U.S. Education Department directed its federal student loan servicers to restart interest accrual on Aug. 1 for participants in the Biden-era SAVE plan. (Catherine Lane/Getty Images)WASHINGTON — Interest accrual on the debt of nearly 7.7 million student loan borrowers enrolled in the Saving on a Valuable Education plan will resume Aug. 1, the U.S. Education Department said Wednesday. The Biden-era income-driven repayment plan better known as…
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