The Department of Education announced Wednesday it will restart interest for nearly 8 million student loan borrowers on the SAVE plan starting August 1.
That leaves borrowers with just three weeks to weigh their options and switch to a new plan.
Payments and interest on the Biden-era plan have been on pause since last summer. The hold on payments will remain in place for now.
President Trump shows his signature on the “big, beautiful” bill on July 4 at the White House. POOL/AFP via Getty Images
The plan has been halted by legal challenges from two groups of red states, which last year argued the Biden administration had overreached its authority to approve the costly loan repayment plan.
The Department of Education said it was axing the “illegal” SAVE plan because it “lacks the authority to put borrowers into a zero percent interest rate status.”
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