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US student loan crisis deepens: How SAVE Plan borrowers could pay $3,500 more in interest annually

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Interest on US student loans under the SAVE plan will resume from August 1, potentially adding $3,500 annually in costs for 7.84 million borrowers. Though repayments remain paused, legal and administrative hurdles have forced the Education Department to restart interest accrual. The move intensifies the student debt crisis, with delays in processing alternative repayment plans compounding borrower uncertainty.
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