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They're Back! Thanks To GOP, Student Loan Interest Charges Return

This move is expected to severely impact those millions of borrowers on SAVE who could potentially enter into more debt as interest accrues.

Roughly 8 million student loan borrowers will see their interest charges restart next month, Trump flunky Linda McMahon announced Wednesday. Via ABC News:

Borrowers on the Biden-era Saving on a Valuable Education Plan -- about 7.7 million people -- will have interest charges return on Aug. 1 after a yearlong pause on payments. The return to interest charges was first reported by Bloomberg.

"For years, the Biden Administration used so-called 'loan forgiveness' promises to win votes, but federal courts repeatedly ruled that those actions were unlawful," Secretary of Education Linda McMahon wrote in a statement released by the department Wednesday. "Since day one of the Trump Administration, we've focused on strengthening the student loan portfolio and simplifying repayment to better serve borrowers."

The education department said it's complying with a federal court injunction that blocked implementation of the SAVE Plan earlier this year. But education advocates told ABC News that this move is expected to severely impact those millions of borrowers on SAVE who could potentially enter into more debt as interest accrues in the coming weeks.

Nearly 7.7 million student loan borrowers will see interest start to accrue on Aug. 1, affecting those enrolled in a Biden-era repayment plan that is tied up in the courts.

โ€” The Washington Post (@washingtonpost.com) 2025-07-09T20:50:24.618Z

Just a heads up the federal student loan SAVE plan will start accruing interest again in TWENTY TWO DAYS starting August 1st. Just announced. No emails about it ๐Ÿ˜

www.ed.gov/about/news/p...

โ€” Laine ๐Ÿ‘๐ŸŒธ Shop Open! (@woolblossom.bsky.social) 2025-07-10T02:49:15.647Z

Read something about the end of the student loan interest subsidy and Iโ€™m reminded of Rufo&Co so completely captured the publicโ€™s imagination that both liberals and conservatives agreed that student loan borrowers are derelict welfare queens.

โ€” Tressie McMillan Cottom (@tressiemcphd.bsky.social) 2025-07-10T03:33:16.229Z

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