The Department of Education announced on July 9 that student loans for borrowers in the SAVE plan would start accruing interest on August 1. Their loans, however, will remain in a general forbearance. To avoid interest charges, the Department of Education is encouraging borrowers to switch to another payment plan.

Interest is set to begin accruing for the 8 million borrowers enrolled in former President Joe Biden's SAVE repayment plan, which courts paused.

Thanks to yet another change to the student loan process, some borrowers may find that their current repayment plan is leading to a major headache. After months of uncertainty, one of the popular income-based repayment plans (SAVE) is no longer giving borrowers a financial break.