Key Points
- Borrowers enrolled in the SAVE plan administrative forbearance are receiving notices that their account balances were adjusted after interest was added in error during the 0% interest period of the payment pause.
- While notices have been posted to borrower accounts, some borrowers are reporting that balances have not yet been corrected.
- Interest resumed for borrowers in the SAVE forbearance on August 1, 2025, but borrowers receiving this notice were impacted prior to that date.
Student loan borrowers in the SAVE forbearance are opening their online accounts to find a new message: “Your Account Balance was Adjusted.”
The notices, now appearing in some borrowers’ portals, state that loan servicers recently conducted a review and made changes based on SAVE administrative forbearance and a 0% interest period. For many, the message comes after nearly a year of confusion and concern over balances that appeared to grow despite federal guidance that interest was paused.
Yet even as the notices roll out, some borrowers say the corrections have not fully appeared in their accounts.
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System Errors During The SAVE Interest Pause
Borrowers enrolled in the Saving on a Valuable Education, or SAVE, income-driven repayment plan have been in administrative forbearance following a court injunction that paused parts of the program. During the first year of this period, the U.S. Department of Education said interest would not accrue and borrowers would not be required to make payments.
MOHELA, one of the largest federal student loan servicers, previously confirmed that borrowers in the SAVE administrative forbearance were at a 0% interest rate.
However, even during this period where interest was supposed to be paused, borrowers were reporting interest accumulating on their loans.
Last year, in response to the complaints, MOHELA posted a public clarification stating that interest was not accruing for borrowers in the SAVE administrative forbearance. The servicer described the issue as a “system error” and indicated that affected accounts would be corrected.
Now, borrowers are finally receiving confirmation messages stating that their account balances have been adjusted to reflect the 0% interest period.
The notice explains that a review was performed and adjustments were made based on SAVE forbearance and 0% interest accrual. It also states that no action is required and directs borrowers to log in to review their updated loan details.
Interest did begin accruing again on August 1, 2025.
Some Borrowers Report No Fix Yet
Despite the official communications, borrower reports remain mixed.
On social media and student loan forums, some borrowers say their balances have been corrected and interest removed. Others report that prior interest have not yet been reversed.
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The timeline for fully resolving the issue has not been publicly detailed.
For borrowers who saw hundreds or even thousands of dollars added to their balances, reassurance in the form of a general notice has not fully settled concerns.
Final Thoughts
The Department of Education has not publicly released detailed data on how many borrowers were affected by the incorrect interest accrual or how long the errors persisted. Without that information, it is difficult to assess the scope of the problem.
It’s important to note that servicing errors disproportionately affect borrowers with lower incomes, who are more likely to be enrolled in income-driven repayment plans like SAVE.
As account adjustments continue to post, borrowers are left closely monitoring their balances. This is, once again, and important reminder on why you have to be vigilant with your financial accounts.
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Editor: Colin Graves
The post Student Loan Borrowers Get Balance Adjustments After SAVE Interest Error appeared first on The College Investor.
