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Interest Resumes for 8 Million Borrowers: Costs Spike

8/2/2025

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Summary

Story summary

Interest will resume for 8 million borrowers in the Biden-era SAVE repayment plan starting August 1, potentially raising monthly costs by $300.
The Department of Education cites "fiscal responsibility" for this decision, despite prior court injunctions.
Borrowers can opt for forbearance, but loan balances will increase due to accruing interest.
A new Repayment Assistance Plan (RAP) launching in 2026 will offer lower payments for those earning under $10,000.
It’s crucial for borrowers to assess repayment options to prevent escalating debt and consider payments to manage interest.

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Story summary

Interest will resume for 8 million borrowers in the Biden-era SAVE repayment plan starting August 1, potentially raising monthly costs by $300.
The Department of Education cites "fiscal responsibility" for this decision, despite prior court injunctions.
Borrowers can opt for forbearance, but loan balances will increase due to accruing interest.
A new Repayment Assistance Plan (RAP) launching in 2026 will offer lower payments for those earning under $10,000.
It’s crucial for borrowers to assess repayment options to prevent escalating debt and consider payments to manage interest.