Interest accrual resumes for Biden’s SAVE Plan on Aug. 1

The Biden-era “SAVE Plan,” which offered an interest-free pause on federal student loan payments, is set to expire on Friday.

Borrowers can transition to an income-based repayment plan, but officials warn that monthly payments could more than double compared to what they paid under the SAVE Plan.

• The SAVE Plan, which paused interest and minimized monthly payments, is ending August 1, 2025, for approximately 7.7 million borrowers.

• Borrowers should expect their monthly payments to potentially double when switching to other income-driven repayment plans like IBR.

• The Department of Education recommends transitioning to IBR to maintain eligibility for loan forgiveness programs.

• However, forgiveness under IBR is temporarily paused as the Education Department updates systems following court injunctions related to SAVE and other plans.

• The “One Big Beautiful Bill”, signed in July 2025, formally ends SAVE, PAYE, and ICR by July 2028, and introduces the new Repayment Assistance Plan (RAP), starting mid‑2026.

Student loan borrowers could see bills more than double as interest-free pause expires – WHEC.com