Millions of student loan borrowers could see their debt grow as interest-free break ends

An interest-free payment pause on student loan bills that has benefited millions of borrowers has come to an end.

Starting Friday, borrowers who remain in the so-called SAVE forbearance will see their education debt grow again if they don’t make payments large enough to cover the accruing interest.

“Any borrower enrolled in the SAVE Plan needs to start thinking about their next step,” said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.

Here’s what to know about the end to the reprieve.

The Biden administration rolled out the Saving on a Valuable Education, or SAVE, plan in summer 2023. The federal student loan repayment plan’s terms were the most generous to date; under its rules, many borrowers’ monthly bills would have dropped by as much as half.