The Department of Education said Wednesday it would restart interest payments next month for about 8 million student loan borrowers on the Saving on Valuable Education plan.

The SAVE plan was created under the Biden administration and was later struck down in federal court. Since that ruling, millions of student borrowers have remained in forbearance with no interest accrual. 

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The forbearance could have lasted through summer 2026 before borrowers would have been required to switch plans. Borrowers will not be responsible for making payments on the SAVE plan until forbearance ends, but their balance will rise when the interest accrual is restarted.

The Education Department told these borrowers to choose a new repayment plan before restarting payments. 

President Donald Trump’s signature domestic policy agenda, which he recently signed into law, included a provision to terminate all current student loan repayment plans, including SAVE, for loans disbursed on or after July 1, 2026.

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Borrowers will now have two separate repayment plans from which to choose: a standard repayment plan and a new income-based repayment plan called the Repayment Assistance plan. They will be required to switch to one of the two plans by 2028.

“The Biden administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear,” Secretary of Education Linda McMahon said.