Why are millions of US student borrowers suddenly facing $27 billion in new interest charges?

Millions of US federal student loan borrowers face $27 billion in new interest charges as the Biden administration’s SAVE Plan is blocked by a federal court. The Trump administration’s dismantling of the US Department of Education has halted the plan, which paused interest and capped repayments. About 8 million borrowers will see interest resume, while nearly 460,000 applications for income-driven repayment plans may be rejected, disrupting loan servicing and increasing financial burdens.

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