Analysis projects that a typical borrower will be forced to pay more than $3,500 per year, or $300 per month, as interest resumes.

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 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.