Millions of federal student loan borrowers face the return of accruing interest as the SAVE forbearance ends under a new directive from the Trump administration, according to CNBC. The Trump administration announced that the SAVE forbearance will end on August 1, and borrowers must resume payments or face growing education debt due to accruing interest. Former President Biden introduced the SAVE plan in 2023 and halted interest and payments for 7.7 million enrollees amid GOP-led lawsuits. The Education Department under Trump now considers the plan illegal and states that it lacked the authority to grant zero-percent interest.
