The Education Department will restart interest accrual for nearly 7.7 million borrowers on the Saving on a Valuable Education repayment plan starting Aug. 1, 2025, following a court order. Borrowers are urged to transition to a legally compliant repayment plan, despite ongoing backlog and limited time.
Education Secretary Linda McMahon emphasized that borrowers need more stable repayment options and criticized the previous administration for supposedly misleading borrowers. Advocates warn that the resumption of interest may worsen debt for many borrowers, as they potentially face significant new costs after a year of forbearance.
