BORROWERS IN SAVE FORBEARANCE WILL ACCRUE INTEREST STARTING IN AUGUST
The Department of Education announced this week that interest will resume on student loans enrolled in the SAVE repayment plan starting Aug. 1. The SAVE plan, introduced under the Biden administration, was ruled unlawful by a federal appeals court, and millions of borrowers have since remained in interest-free forbearance. Borrowers are now encouraged to switch to alternative repayment options, as the SAVE plan is being phased out under recent legislative changes.