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Student loan borrowers could see their monthly bills more than double now that the Biden-era Saving on a Valuable Education, or SAVE, plan is defunct.
Federal student loan borrowers face changes as the Education Department halts the SAVE Plan, affecting 460,000 people who signed up for the income-based repayment program.
Federal student loan borrowers who enrolled in President Biden’s SAVE income-driven repayment plan have been in an interest-free forbearance for nearly a year.
The Department of Education announced Wednesday it will restart interest for nearly 8 million student loan borrowers on the SAVE plan starting August 1.
Nearly 7.7 million student loan borrowers within a Biden-era repayment plan will begin to see interest accrue once again on their student loans, the U.S. Department of Education announced Wednesday.
While borrowers will not be responsible for making payments on the SAVE plan until forbearance ends, their balance will rise with the restart of interest accrual.
Roughly 8 million student loan borrowers will see their interest charges restart next month, according to a source familiar.