US EditionStudent loan interest charges to kick back in for roughly 8 million borrowers
UNITED STATES, JUL 14 – Nearly 8 million borrowers will face renewed interest charges averaging $3,500 annually after a federal court blocked Biden's SAVE Plan, prompting a repayment overhaul under the Trump administration.
- On August 1, 2025, the U.S. Department of Education will restart interest accrual for nearly 8 million borrowers on the SAVE plan.
- Amid federal injunctions against SAVE, the Department of Education labeled the plan `illegal`, saying it `lacks the authority to put borrowers into a zero percent interest rate status`.
- On Thursday, the Education Department will reach out to SAVE enrollees with switching instructions, while servicers grapple with a 1.5 million-application backlog.
- With just three weeks to decide, borrowers must switch plans, and the Repayment Assistance Plan will cost many of them hundreds of dollars more each month.
- Future changes include phasing out PAYE and ICR, which will be eradicated by June 30, 2028, under the GOP bill.
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8 million federal student loan borrowers will soon see interest restart - West Hawaii Today
The U.S. Education Department said Wednesday that it would resume applying interest Aug. 1 to federal student loans held by nearly 8 million borrowers in the Biden-era repayment plan known as SAVE, which has been in limbo after being halted by legal challenges.
OKLAHOMA VOICE: U.S. Education Department to revive student loan interest for borrowers in SAVE program
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.
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Leaning Left38Leaning Right9Center31Last UpdatedBias Distribution49% Left
Bias Distribution
- 49% of the sources lean Left
49% Left
L 49%
C 40%
12%
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