Interest Is Back: What It Means for Your Student Loans (and Your Wallet)

If you’ve noticed your student loan balance suddenly rising, you’re not imagining things. Interest is back. For millions of federal borrowers, this means loan balances will now grow month by month, adding stress to already strained budgets. Today, we'll clearly explain what it means for your student loans (and your wallet), especially if you're counting on forgiveness programs like PSLF. The SAVE Plan Has Ended, and Interest Has Returned Last year, many borrowers enrolled in the SAVE plan, designed to lower monthly payments significantly and, in some cases, cut payments down to zero. Unfortunately, due to legal challenges and legislative changes, the SAVE plan is no longer available. As of August 1st, interest charges are once again building on loans still in SAVE-related forbearance.

To put that in perspective, if your federal loan balance is near the national average of around $39,000, you could be paying approximately $219 each month in interest alone. That means your debt grows every month you stay in forbearance without payments. PSLF Buyback: Delays Are Costing Borrowers Real Money Many borrowers working in public service fields like teaching, healthcare, or government have counted on Public Service Loan Forgiveness (PSLF) to eliminate their remaining debt after ten years of service. A temporary program known as PSLF Buyback was intended to help borrowers reclaim missed qualifying months due to previous deferments or forbearances.

However, more than 65,000 borrowers who applied to PSLF Buyback now find themselves stuck in a frustrating backlog. Some have waited nearly a year without hearing from the Department of Education. Every month spent waiting means continued uncertainty and rising debt for borrowers who feel they've already earned forgiveness.

Should You Keep Waiting or Switch Plans? Choosing to stay in forbearance while waiting on PSLF Buyback approval might seem easiest, but interest charges could quickly become expensive. Alternatively, enrolling in another PSLF-eligible plan, like Income-Based Repayment (IBR), means you'll start making payments again—even on loans you might soon have forgiven. It's a tough decision, and one many borrowers feel unfairly forced into making. EDAPT USA Can Help You Navigate Your Options At EDAPT USA, we know exactly how overwhelming these changes can feel. Our team is dedicated to helping borrowers just like you navigate these complex repayment decisions clearly. Whether you're dealing with new interest charges, considering switching repayment plans, or managing PSLF delays, our goal is to help you avoid costly mistakes and keep your financial goals on track.

You don't have to figure this out alone. Reach out today, and let’s work together to protect your financial future. +1 888-418-3795