The U.S. Department of Education has announced that it will restart interest accruals on student loans in the Saving on a Valuable Education (SAVE) plan, starting from August 1, according to a July 9 Education Department statement.
The move complies with an injunction that blocked parts of the Biden-era student debt plan earlier this year.
The SAVE Plan was launched in 2023 but was ruled unlawful by a federal appeals court earlier this year.
The department says borrowers won't be charged retroactive interest and will be contacted with options to move to legal repayment plans.