Interest charges will restart Aug. 1 for student-loan borrowers enrolled in the SAVE repayment plan, the Department of Education announced Wednesday, Business Insider reported.
The department said the interest restart is in compliance with a court order issued earlier this year that upheld the block on the SAVE plan, which was created under the Biden administration and struck down as illegal by the 8th U.S. Circuit Court of Appeals last July.
"Since day one of the Trump Administration, we've focused on strengthening the student loan portfolio and simplifying repayment to better serve borrowers," Education Secretary Linda McMahon said in a statement.
"As part of this effort, the department urges all borrowers in the SAVE Plan to quickly transition to a legally compliant repayment plan — such as the Income-Based Repayment Plan," McMahon said. "Borrowers in SAVE cannot access important loan benefits and cannot make progress toward loan discharge programs authorized by Congress."
Since the court ruling striking down the program, the nearly 8 million enrolled borrowers have been on a forbearance during which they were not required to make monthly payments and interest was not accruing, according to The Hill.
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
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