Restarting Payments? A Borrower’s Guide to Student Loans

What’s Changing—and Why It Matters

Let’s start with the facts. As of August 1, 2025, interest began accruing again on loans under the SAVE (Saving on a Valuable Education) plan, and collections resumed for defaulted borrowers in May 2025. That means if you were in forbearance or income-driven forgiveness programs, you’re likely now facing mounting interest, payments, and potential consequences.

For many, these changes could mean roughly $3,500 more in interest annually, and monthly payments may jump by around $300 on average. Missed payments now carry real financial risks – like wage garnishment, withheld tax refunds, or even Social Security offsets.

What You Can Do – Practical Steps That Help

1. Review your…