The Education Department said on Wednesday it would resume applying interest on Aug. 1 to federal student loans of nearly eight million borrowers who enrolled in the SAVE plan.

Federal student loan borrowers who enrolled in President Biden's SAVE income-driven repayment plan have been in an interest-free forbearance for nearly a year.

Thanks to yet another change to the student loan process, some borrowers may find that their current repayment plan is leading to a major headache. After months of uncertainty, one of the popular income-based repayment plans (SAVE) is no longer giving borrowers a financial break.