Federal student loans to begin accruing interest in August

Nearly eight million student loan borrowers will soon begin accruing interest on their debt again. The U.S. Department of Education announced Wednesday that interest charges for people enrolled in the Saving on a Valuable Education (SAVE) Plan will resume on August 1.

The income-driven repayment program, which was introduced by the Biden administration in 2023, allowed some low-income borrowers to qualify for $0 monthly payments on their federal student loans, while others could have their loans forgiven outright.