Almost 8 million federal student loan borrowers who enrolled in a Biden-era repayment program will soon see interest accruing on their debt again, even as their payments are paused due to an ongoing legal battle.
Starting Aug. 1, interest will begin accruing on loans that are currently enrolled in the Saving on a Valuable Education, or SAVE, repayment plan, the Education Department announced Wednesday. Some 7.7 million borrowers are enrolled in the plan, which was created under the Biden administration in 2023 and faced immediate backlash from conservatives.
