Urgent student loan update: Interest accrues again starting August 1st!

Don't be caught off guard! If you're a federal student loan borrower, especially those enrolled in the SAVE plan, mark your calendars. Interest will begin accruing on your student loans again starting August 1, 2025. This means your loan balance will start growing even if you're not yet making payments.

Why the Change? The Trump administration announced the restart of interest accrual for SAVE plan borrowers, citing a federal court injunction blocking parts of the plan. The administration's stated reason is to bring "fiscal responsibility to the federal student loan portfolio".

What You Need to Know:

• Your loan balance will increase: Interest will resume on August 1st, potentially adding thousands to your total debt over the next year.

• Monthly payments could rise: While payments aren't immediately resuming for all, the end of the interest-free period could lead to larger payments in the future, especially if you move to a different repayment plan like the Income-Based Repayment (IBR).

• Consider your options: The Department of Education urges SAVE borrowers to switch to a compliant repayment plan, like IBR, to potentially avoid growing balances and make progress toward forgiveness.

Don't wait! Head to www.greenvillefec.com for help with your personal finances and resources! Allow us to help you craft strategies and create a roadmap for YOUR Financial Future!