Interest Accruals Resume for Borrowers on SAVE Plan

July 16, 2025

Connecticut Student Loan Ombudsperson Reminds Borrowers that Interest Accruals for Borrowers on SAVE Plan Resumes August 1, 2025

HARTFORD - Connecticut Student Loan Ombudsperson Michelle Jarvis-Lettman is reminding borrowers that the U.S. Department of Education recently announced that federal student loan interest will resume accrual for those that are enrolled in the Saving on a Valuable Education (SAVE) Plan on August 1, 2025. 

“This is a massive change for federal student loan borrowers,” Jarvis-Lettman stated. “The SAVE Plan has been in a stagnant status while the courts decide what will happen and resuming interest accrual will likely confuse many borrowers.” 

Borrowers may see their loan balance increase with this change. When the current SAVE Plan forbearance ends, borrowers will be responsible for their monthly payments which include both the accrued interest and principal. 

The Student Loan Ombudsperson is encouraging borrowers enrolled in SAVE to log onto studentaid.gov and review other current Income-Driven Repayment plans that they may be eligible for. All borrowers should continue to keep track of their payment records on studentaid.gov or through their student loan servicer. For additional resources, borrowers can find information on the Student Loan Ombudsperson website.  

Borrowers not currently on the SAVE plan do not need to take any action at this time.

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Contacts:

Student Loan Inquiries:
Michelle Jarvis-Lettman 
Phone: 860-240-8122
dob.studentloanombuds@ct.gov

Media Inquiries:
Matt Smith
203-996-1241
matthew.smith@ct.gov