Nearly eight million Americans will soon see interest charges return to their student loans as the Trump administration moves to dismantle what it calls an “illegal” repayment program initiated under President Joe Biden.

The U.S. Department of Education confirmed on Wednesday that interest accrual will restart on 1 August for borrowers currently enrolled in the Saving on a Valuable Education (SAVE) Plan — a signature Biden-era initiative that aimed to ease the debt burden on low- and middle-income earners.

Education Secretary Linda McMahon, who now leads the department under President Donald Trump’s second term, criticized the SAVE Plan as a political ploy rather than a lawful policy. “For years, the Biden administration used so-called ‘loan forgiveness’ promises to win votes, but federal courts repeatedly ruled that those actions were unlawful,” McMahon said in a statement provided to Fox News Digital. “Congress designed these programs to ensure that borrowers repay their loans, yet the Biden administration tried to illegally force taxpayers to foot the bill.”

McMahon emphasized the administration’s pivot to what it calls a “legally compliant” approach, urging borrowers to transition to existing plans such as the Income-Based Repayment (IBR) program. She noted that those who remain in the SAVE Plan will not be eligible for federal benefits or progress toward debt discharge under congressional programs.

Starting Thursday, the Department of Education will begin outreach efforts to inform the nearly 7.7 million borrowers enrolled in SAVE about their options, providing step-by-step guidance on switching to eligible repayment plans. Borrowers who previously applied for IBR, Pay As You Earn (PAYE), or Income-Contingent Repayment (ICR) will not need to reapply.