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You are currently viewing SAVE Program Student Loan Debtors Will See Interest Resume on Aug. 1

It will kick back in on Aug. 1 for people in the SAVE repayment program, whose payments have been on hold since last summer.

The U.S. Education Department said on Wednesday that it would resume applying interest on Aug. 1 to federal student loans held by nearly eight million borrowers in the Biden-era repayment plan known as SAVE, which has been in limbo after being halted by legal challenges.

The shift is likely to take borrowers by surprise, giving them just weeks to consider their options at a time when loan servicers face significant backlogs in processing repayment plan applications. The entire student loan landscape is about to undergo even more upheaval — the domestic policy bill signed into law last week created new repayment options that will take effect next year.

SAVE borrowers’ payments have been on hold since last summer, and they will remain paused for now. But the Education Department

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