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Interest on federal student loans resumed accruing in August 2025 for over seven million borrowers enrolled in the Saving on a Valuable Education (SAVE) income-driven repayment plan. These loans had previously been in zero-interest forbearance due to court injunctions against the plan. The resumption of interest accrual affects borrowers who had been protected under this forbearance. However, a new repayment plan is expected to be introduced in the coming months, which may allow some borrowers to pause interest accrual again, though likely at a cost.
Borrowers Could Pause Some Student Loan Interest Again, For A Price https://t.co/nARkFTYEzX https://t.co/nARkFTYEzX
Interest began accruing again this month for more than seven million student loan borrowers stuck in the SAVE plan forbearance. A new repayment plan expected to be launched in coming months may offer some borrowers a way to pause interest accrual again. https://t.co/P1Z7XQnfzZ https://t.co/IDuxSnvsE7
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