India, July 10 -- The US Department of Education announced on Wednesday, that interest accrual will restart for borrowers enrolled in the Saving on a Valuable Education (SAVE) plan starting August 1, due to a federal court injunction blocking parts of the program. This change could lead to significant interest accumulation, with estimates suggesting borrowers might face up to $3,500 more in interest this year, depending on loan balances, interest rates, and repayment status.

Approximately 8 million borrowers currently enrolled in the SAVE plan are impacted. These borrowers include:

Low- and Middle-Income Borrowers: The SAVE plan, launched in August 2023, was designed for borrowers with lower incomes, offering $0 payments for those earni...