FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]

WASHINGTON, D.C., JULY 9, 2025 — Borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan will begin to accrue interest in their loan balances on August 1, thereby ending borrowers’ interest-free forbearance period, the Department of Education (ED) announced Wednesday.  

In response to this news, NASFAA President & CEO Melanie Storey released the following statement:

"Borrowers are again caught in the political crosshairs regarding student loan repayment. After years of change and confusion stemming from the pandemic and adjustments to existing repayment plans, what borrowers really need is stability and predictability in the benefits and payment amounts available to them when borrowing for college. That could—and should—be achieved through a thoughtful reauthorization of the Higher Education Act.

One consistency across administrations has been unreasonable timelines and a lack of clarity on processing times.

Financial aid professionals are the first responders to students and families with questions, and we need transparency in information to carefully counsel families. Even with aggressive outreach, three weeks does not leave much time for borrowers to enroll in a new repayment plan, particularly when a significant backlog of applications already exists. The financial aid community stands ready to help guide borrowers through these next steps."

NASFAA policy experts are available to speak to members of the media about the changes to student loan repayment plans. To set up an interview, please email [email protected].

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About NASFAA

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.