🚨BREAKING: Mandatory interest on student loans have RESUMED today.
After a yearlong pause, federal student loan borrowers who enrolled in the Saving on a Valuable Education repayment plan will see interest resume accruing on their loans as of Aug. 1.
The income-driven repayment plan introduced in 2023 by President Joe Biden is currently blocked, following two Republican-led multi-state lawsuits that challenged Biden’s authority to enact the plan in 2024.
The roughly 8 million borrowers who were able to enroll in the SAVE plan have been in an administrative forbearance since July 2024 that paused both mandatory monthly payments and interest accrual. The Department of Education announced on July 9 that interest would resume on Aug. 1.
Payments, however, will remain paused for those borrowers for now, but their debt balances will start growing again, according to CNBC.
