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When do student loan interest charges restart?
Interest charges on student loans are set to restart on August 1, following a court order that upheld the Department of Education's decision. This applies to borrowers in the SAVE plan, although legal challenges have created some uncertainty. It’s important to stay informed about official updates to know exactly when your interest will begin accruing again.
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What are the best repayment options now interest resumes?
As interest charges restart, borrowers should consider switching to repayment plans that reduce monthly payments or interest accrual. Options like income-driven repayment plans or extended repayment can help manage costs. Consulting with your loan servicer can help you choose the best plan based on your financial situation.
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How will the legal challenges affect student loan payments?
Legal challenges to the SAVE plan and other initiatives have created some legal uncertainty about repayment obligations. While interest charges are resuming, the overall landscape remains uncertain, and legislative or court decisions could still impact repayment terms. Borrowers should stay updated on legal developments and consider flexible repayment options.
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What should borrowers do before interest charges restart?
Before interest begins to accrue again, borrowers should review their current repayment plan, explore alternative options, and consider making voluntary payments to reduce interest buildup. Contacting your loan servicer for personalized advice can help you prepare financially and avoid surprises when payments resume.
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Will I have to start making payments immediately?
Not necessarily. While interest charges will restart on August 1, the Department of Education has indicated that borrowers are not yet required to resume full payments. However, interest will accrue during this period, so it’s wise to plan ahead and consider making payments to reduce overall costs.
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How can I stay updated on student loan news?
To stay informed, regularly check official sources like the Department of Education website, subscribe to loan servicer updates, and follow reputable news outlets covering education policy. Being proactive will help you respond quickly to any changes or new guidance.