Student Loan Interest Resumes August 1st for SAVE Plan Borrowers

Changes to Federal Student Loans

• 🎯 Starting August 1st, the education department will resume charging interest on federal student loans for borrowers in the SAVE plan.
• 💡 The SAVE plan, enacted by President Biden, aims to reduce monthly payments based on income and family size.

Impact on SAVE Plan Borrowers

• 📌 Approximately 8 million borrowers are affected by this change.
• 📈 While loans remain in the SAVE plan, interest will begin to accrue, and borrowers will see their monthly payments increase.
• ⚠️ Borrowers are advised to contact their federal student loan servicer to make a plan for catching up on monthly dues.

Future Repayment Plans

• 🗓️ For borrowers of all income-driven repayment plans, there's an on-ramp until July 1st, 2028, before they are forced into one of two new plans.
• 🚀 New borrowers, who take out student loans after July 1st, 2026, will be immediately required to use these two new repayment plans.

Preparing for the Deadline

• 📞 The best first step is to contact your federal student loan servicer to understand your balance and payment schedule.
• 🤝 Consider enrolling in automatic payments to avoid missed payments.
• 📚 Seek help from a student loan counselor or lawyer if needed, and utilize free resources on sites like Bankrate or studentaid.gov.