SAVE student loan interest is resuming. Here’s what you need to know.

WGBH

What has the status of student loans been over the last few years and what’s changing now?

“The past few years have been chaotic, to say the least,” Mayotte said.

All required payments for federal student loans were put on hold with a 0% interest rate in March 2020 during the beginning of the COVID-19 pandemic. The 0% interest rate ended on Sept. 1, 2023, and payments restarted in October 2023 for those on income-based and standard repayment plans.

“Then the Biden administration attempted to do this really generous lower payment option [SAVE], which ended up going right to court, and all the borrowers that were put into that option had their loans paused again with zero interest,” Mayotte said.

For those on SAVE, their loans are still in forbearance and payments are still paused, but interest will resume on Aug. 1.