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Student Loans in SAVE Plan to Begin Accruing Interest
UNITED STATES, AUG 1 – Trump administration ended the 0 percent interest on SAVE loans August 1, causing 7.7 million borrowers to face interest rates up to 9 percent, increasing financial burdens, advocates said.
- On August 1, 2025, the U.S. Department of Education announced interest charges will resume for nearly eight million SAVE enrollees.
- Earlier this year, Republican state attorneys general filed suit against SAVE, and Trump’s Department of Education declared the plan "illegal" in a July 9 announcement, citing a federal injunction.
- The Student Borrower Protection Center projects some borrowers will face an extra $300 a month due to the messy rollout of SAVE changes.
- Amid resumed interest charges, the administration is urging borrowers to switch to the Income-Based Repayment plan, but Abby Shafroth warns it could double bills and its impact remains unclear.
- On July 3, Congress passed President Donald Trump’s "big beautiful bill", establishing the RAP program, which won’t be operational until next year.
16 Articles
16 Articles
Student loans in SAVE Plan to begin accruing interest
Nearly eight million student loan borrowers are accruing interest on their debt again. The U.S. Department of Education announced in July that interest charges for people enrolled in the Saving on a Valuable Education (SAVE) Plan would resume on August 1.The income-driven repayment program, which was introduced by the Biden administration in 2023, allowed some low-income borrowers to qualify for $0 monthly payments on their federal student loans…
Why your student debt balance may start climbing again this week
Millions of student loan borrowers are about to see a jump in their monthly payments. That’s because an interest-free pause under the Saving on a Valuable Education (SAVE) plan has ended as of Aug. 1. SAVE, rolled out in 2023 under the Biden administration, brought many borrowers’ payments down to $0 a month, ensured borrowers’ balances wouldn’t grow as long as they made timely payments, and massively cut undergraduate loan balances. About 7.7 m…
Interest to start accruing for student loan borrowers enrolled in SAVE plan
Starting Friday, the U.S. Department of Education will start charging interest for student loans in the SAVE plan.Dan Hirst knows hes not alone. Hes got federal student loans.This SAVE plan was a lifeline to us, Hirst said.Watch full report from Mary O'Connell Student loan interest resumes, leaving borrowers concerned about their financial futuresHirst enrolled in the SAVE plan.Back in 2023, the Biden administration launched what they called the…
Student loan interest relief has officially ended for over 8 million borrowers
The pause is officially over. Starting today, more than 8 million borrowers enrolled in the SAVE plan will once again see interest accrue on their student loans, marking the end of a relief period that began under the Biden administration. The Education Department announced the move back on July 9, calling the return of interest a step toward “fiscal responsibility” in a statement on their site. “For years, the Biden Administration used so-calle…
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