The Trump administration is restarting interest charges for student-loan borrowers on the Biden's SAVE repayment plan, affecting nearly 8 million enrolled borrowers.
Interest charges for borrowers on the SAVE plan will begin accruing again on August 1 after being paused for a year due to litigation.
The Department of Education is encouraging borrowers to switch to a different income-driven repayment plan as the SAVE plan has faced legal challenges and has been blocked since July 2024.
The decision to restart interest charges has drawn criticism from borrower advocates, who argue that it will result in increased monthly costs for borrowers.