New law reduces the number of federal student loan repayment options and caps how much individuals can borrow for higher education.

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 Department of Education announced on July 9 that student loans for borrowers in the SAVE plan would start accruing interest on August 1. Their loans, however, will remain in a general forbearance. To avoid interest charges, the Department of Education is encouraging borrowers to switch to another payment plan.