The Education Department said on Wednesday it would resume applying interest on Aug. 1 to federal student loans of nearly eight million borrowers who enrolled in the SAVE plan.

The proposed changes arrive based on concerns that federal funds have been used to support organizations the administration views as acting outside the law.

Plans unveiled this week could change how the student loan forgiveness program works for government employees.

The so-called One Big Beautiful Bill and the Trump administration’s executive action are making the future of student loan forgiveness and its tax consequences uncertain.

President Donald Trump is revamping the Public Service Loan Forgiveness program, sparking concerns it could become a tool for political retribution.

As the Trump administration allows garnishing wages of borrowers in default, experts say student loan benefits are a business imperative.

Months later, the Education Department has unveiled drafted plans for the student loan forgiveness program that does just that. Proponents claim the proposed legislation would give one person unilateral power to remove organizations’ eligibility from the program as a form of political retaliation.