Education Department announces interest payments for SAVE student loans to resume in August

America is $36 trillion in debt. We must get our fiscal house in order and restore common sense to our country. If you take out a loan, you have to pay it back. It's very simple. The Department of Education recently said it would restart interest payments for about 8 million student loan borrowers within the Saving on Valuable Education Plan. The SAVE plan was created under the Biden administration and was later struck down in federal court. Since that ruling, millions of student borrowers have remained in forbearance with no interest accrual. Borrowers will not be responsible for making payments on the SAVE plan until forbearance ends, but their balance will rise when the interest accrual is restarted. The Education Department told these borrowers to choose a new repayment plan before restarting payments. President Donald Trump's signature domestic policy agenda, which he recently signed into law, included a provision to terminate all current student loan repayment plans, including ones such as SAVE, for loans dispersed on or after July 1st, 2026. Borrowers will now have two separate repayment plans that they can choose from, the first being a standard repayment plan and the second being a new income-based repayment plan called the Repayment Assistance Plan. Borrowers will be required to switch to one of two plans by 2028.