Student Loan Payments Are Coming Back (Again). Here’s What to Do Before August

Let’s start with the big headline: Student loan interest is officially resuming August 1.

That’s not a rumor. That’s not a "maybe." That’s the real deal—thanks to a recent court injunction hitting pause on parts of the SAVE plan (you know, the one that was supposed to make repayment a little less painful).

So if you’ve been enjoying low or no payments and 0% interest, things are about to change. Again.

And if you’re feeling confused, frustrated, or just plain tired of keeping track of student loan news... yeah, you’re not alone.

What’s Going On With the SAVE Plan?

The SAVE (Saving on a Valuable Education) plan was designed to lower payments for federal student loan borrowers, particularly those with lower incomes. But with this new legal decision, some of the SAVE plan’s benefits are being paused—including the interest subsidy.

Translation? Even if your payments remain low for now, interest will start building back up on August 1.

Borrowers have already caught wind of it—searches for “student loan restart date” and “new payment calculator” are spiking. And no wonder. The rules seem to keep changing every few months, and people are scrambling to figure out what it means for their next payment.

What This Means for You (and Your Wallet)

If you’ve been treating student loans as a “next month” problem, it’s time to move them to the front of the budget line.

Let’s break this down:

• Interest restarts August 1. So if you’re not making payments now, your balance could start growing again.

• Your loan servicer might not notify you right away. You’ll need to log in and see what’s changed.

• Payment calculators might give you different results. Run the numbers assuming interest is accruing, even if your payment hasn’t kicked back in yet.

This might feel like whiplash, especially after a few years of pause, forgiveness attempts, new plans, and now legal reversals. It’s enough to make anyone want to bury their head in the sand. But please don’t. You’ve got options.

Steps to Take Before the Clock Hits August 1

1. Check your servicer account

Seriously, just log in. See what your payment plan is, if you’re enrolled in SAVE, and what your updated balance and due date look like. Things may have shifted without much warning.

2. Run your numbers

Use one of the new student loan calculators and plug in your income, loan balance, and interest rate assuming interest starts August 1. That’ll give you a more realistic picture to plan around.

3. Adjust your budget now—not later

You don’t need to throw your entire paycheck at your loan, but if you can start setting aside the monthly amount now, you’ll be in a better place when the bill comes due. Even $50 or $100 a month can soften the blow.

4. Avoid last-minute surprises

Update your income with your loan servicer if it's changed. If you're eligible for income-driven repayment and your income has dropped, this could lower your monthly payment.

5. Talk to someone who knows how to connect the dots

Student loans don’t live in a vacuum. They affect your ability to save, invest, buy a home, and plan for retirement. You want a strategy that doesn’t just focus on student loans—but everything else in your life, too.

We Help People Like You Make Sense of This Stuff

At Halter Ferguson Financial, we’re not just here for retirement plans or investment accounts (though we love building those). We’re here to help people navigate life’s real financial moments—like this one.

If you’re wondering how this student loan shake-up fits into your broader financial picture, we can help you figure that out.

No jargon. No judgment. Just straightforward advice from people who care about your future.

Let’s Talk. If you’ve got student loans and you’re not sure how to plan around August 1—or you’re just ready for a strategy that actually works for your whole financial life—schedule a call with us today.

We’ll help you connect the dots, make a plan, and move forward with confidence. Because your financial life deserves more than guesswork.