The Education Department paused interest last year after courts halted SAVE, placing borrowers in zero-interest forbearance|aaup|CC BY-NC-SA 2.0

Starting today, about 8 million student loan borrowers enrolled in former president Joe Biden’s SAVE repayment plan will see interest charges resume.

It could potentially add $300 monthly or $3,500 yearly for people with the loans, according to the Student Borrower Protection Center.

The Education Department paused interest last year after courts issued injunctions against SAVE. Borrowers were placed in zero-interest forbearance.

Now, interest will accrue again, which officials say reflects “fiscal responsibility.” 

Borrowers can remain in forbearance, but unpaid interest will grow their balances. Financial aid experts urge covering the monthly interest to avoid rising debt.

A new Repayment Assistance Plan (RAP), launching in 2026, may offer lower payments based on income.