Interest on federal student loan balances will start accruing in August for the millions of borrowers in the SAVE repayment plan. But payments remain in forbearance.

Nearly half a million federal student loan borrowers will be denied the ability to make lower repayments on their student loads as the Trump administration seeks to overhaul the repayment system.

Federal student loan borrowers who enrolled in President Biden's SAVE income-driven repayment plan have been in an interest-free forbearance for nearly a year.