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.

The Trump administration will resume charging interest next month on student loans under the Biden-era SAVE plan, which have been on hold while the plan’s tied up in court—potentially costing nearly 8 million borrowers an extra $3,500 per year in interest.

Trump's Education Department is restarting interest charges for student-loan borrowers enrolled in the SAVE plan, which has been blocked in court.

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

The Department of Education will resume student loan interest payments on Aug. 1, slamming President Biden for using loan forgiveness to sway votes.

The Trump administration said borrowers enrolled in the SAVE program will see their balances grow, starting in August.

The Department of Education's announcement gives borrowers just weeks to consider their options before interest begins accumulating on their loans.