The SAVE Plan was supposed to pause payments and stop interest. For some borrowers, that promise is unraveling.
After the launch of the Biden-era Saving on a Valuable Education (SAVE) plan in 2024, legal challenges forced the U.S. Department of Education to place millions of borrowers into an interest-free forbearance.
But now, many borrowers are seeing their balances grow, despite assurances from the government that interest wouldn’t accrue.
“I checked my balance and it was higher. I thought we weren’t supposed to be charged anything,” one borrower posted online—echoing growing confusion and frustration.
What’s Happening?
In 2024, legal disputes froze the SAVE repayment program. To shield borrowers, the Education Department placed them in a special forbearance. The Trump administration has not said when the pause will end. Roughly 2 million borrowers are stuck in a backlog, waiting to get into other repayment plans.
Even though up to 8 million borrowers were enrolled in SAVE, it’s unclear how many are seeing balances rise. The Education Department insists that “those enrolled in the SAVE Plan remain in a forbearance that is not accruing interest”—but borrower reports suggest otherwise.
Complicating the Crisis: Staffing Cuts
In recent months, the Trump administration terminated nearly half of the Education Department’s workforce, including many staff who helped borrowers navigate repayment options.
A federal judge has ordered those employees reinstated. The administration is asking the Supreme Court to block that order.
These cuts have made it harder for borrowers to get help—or even clarity—on what’s happening with their loans.
🎓 The Wealth Break Takeaway
If you’re enrolled in SAVE and seeing interest grow, you’re not alone—and you’re not imagining it.
✅ Track your loan balance weekly
✅ Document everything: take screenshots and save emails
✅ File a complaint with the Federal Student Aid Ombudsman if needed
This issue could affect millions—and if unresolved, it may undermine trust in federal repayment plans at a time when student debt relief is already on shaky ground.
Source: https://www.cnbc.com/2025/06/09/student-loan-borrower-in-save-forbearance-says-interest-growing.html
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