The Education Department will soon begin to charge interest on student debt for an estimated 7.7 million borrowers who’ve been in legal limbo since a repayment plan created by President Joe Biden was blocked in court.
The interest charges for people enrolled in the Saving on a Valuable Education, or SAVE program, will begin on Aug. 1, according to an Education Department official, although, for now, borrowers do not have to resume making loan payments.
The department plans to encourage affected borrowers to switch to other repayment plans currently offered by the Trump administration, the official said, adding that an announcement regarding the interest payments will be made on Wednesday.