The Trump administration is restarting interest charges for roughly 8 million federal student-loan borrowers beginning in August, ending a temporary freeze that had held rates at 0%. Officials say the move is part of a broader push to shift all borrowers back into active repayment after years of pandemic-era forbearance. The change coincides with the recently enacted “Big, Beautiful Bill,” a budget law President Donald Trump signed on 4 July. The statute dismantles three existing income-driven repayment options—SAVE, PAYE and ICR—phasing them out by 1 July 2028 and replacing them with a new Repayment Assistance Plan that must launch no later than 1 July 2026. Analysts say many borrowers will face steeper monthly bills; a graduate earning $60,000 a year, for example, would see payments jump to about $520 under the remaining IBR plan from roughly $250 under SAVE. Democratic lawmakers, led by Senator Elizabeth Warren, have urged Education Secretary Linda McMahon to halt the interest restart and reconsider the overhaul, arguing that it will saddle working-class families with higher costs and fewer paths to loan forgiveness. The department has not signalled any plans to reverse course, setting the stage for a political fight as the new rules begin to take effect.