Latest news with #SAVEprogram
Yahoo
09-07-2025
- Business
- Yahoo
Nearly 8 Million US Student-Loan Borrowers to See Interest Charges Again
(Bloomberg) -- 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. Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On 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. Under the SAVE program, some low-income borrowers were allowed to make zero-dollar monthly payments and could get their debt forgiven after a maximum of 25 years in repayment. The program, along with other Biden administration debt-relief initiatives, quickly ran into fierce opposition from conservatives. An appeals court last year blocked the SAVE plan after a lawsuit was filed by a Republican-led coalition of states. While the legal questions are being resolved, borrowers have not had to make payments or pay interest. The borrowers still remain in a so-called general forbearance period. According to guidance issued by the Education Department in January, they were also not expected to see payments due again until December at the earliest. However, with interest charges about to return, some may opt to enroll into a new plan sooner to avoid seeing their debt grow while court proceedings continue to play out. Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
09-07-2025
- Business
- Bloomberg
Nearly 8 Million US Student-Loan Borrowers to See Interest Charges Again
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.
