ED to Restart Interest Accrual on SAVE Loans
Published July 14, 2025
By AACOM Government Relations
- ED recently announced that interest accrual on the Saving on Valuable Education (SAVE) plan will restart on August 1, 2025.
- The SAVE plan, created under the Biden Administration, had been struck down by the 8th U.S. Circuit Court of Appeals, and since then, millions of borrowers had remained in forbearance with no interest accrual.
- No payments will be required until forbearance ends, but interest accrual begins in a few weeks. The reconciliation package, P.L. 119-21, eliminated the SAVE plan, and ED will work with borrowers to switch to one of two available repayment plans.
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