Student loan balances being reduced by services for a few borrowers: report

WASHINGTON (TNND) — Student loan balances are being adjusted for some borrowers, meaning reductions could be coming for the amount owed.

This is taking place because a few student loan services didn’t apply an interest waiver correctly in accordance with the SAVE plan, according to Forbes.

There was an administrative forbearance period that resulted in payments being paused.

Student loans that are in the SAVE forbearance as of August now have interest.

Last summer, the Trump administration went back to charging interest on student loans that were in the SAVE plan forbearance.

“Today, the U.S. Department of Education announced it will take an additional step to bring fiscal responsibility to the federal student loan portfolio by restarting interest accrual for borrowers with loans in the illegal Saving on a Valuable Education (SAVE) Plan on August 1, 2025,” the Department of Education said in a 2025 statement.

A few student loan services have been notifying some borrowers who had balances accrue interest during the first year of the SAVE plan forbearance.

“Your account balance was adjusted,” a MOHELA notice reads. “There was a period of time eligible loans qualified for a 0% interest rate. We recently performed a review of your account and have made adjustments to your account balance based on your SAVE forbearance and the 0% interest accrual. No action is required by you as this adjustment is now complete.”