The U.S. Department of Education announced it will restart interest accrual for student-loan borrowers in the Saving on a Valuable Education (SAVE) plan, starting from Aug. 1, according to a July 9 Education Department statement.
Launched in 2023 by the Biden administration, the SAVE plan calculated student loan payments based on the individual’s income and family size. The plan prevents interest from getting accrued, brings loan payments for those who earn less than $32,800 annually down to zero per month, while providing early forgiveness for low-balance borrowers.
