Millions of student loan borrowers are facing a silent financial crisis as they remain tethered to the defunct SAVE plan, with average balances surging by $2,500 (£2,000) since interest resumed last summer.
Despite the US Court of Appeals for the 8th Circuit definitively striking down the Saving on a Valuable Education (SAVE) plan on 10 March 2026, roughly 7.2 million Americans remain in a state of 'repayment limbo'. These enrollees have been in administrative forbearance since July 2024, but while monthly payments are currently paused, the US Department of Education confirmed that interest began accruing again on 1 August 2025.
