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Why Millions of Borrowers Must Find a New Way to Pay Back Student Debt

The Wall Street Journal • 2026-05-26T16:00:09Z • 1:50:00 • intermediate • Business

Lead

Navigating the complexities of student loans can be overwhelming, especially with recent changes to repayment plans. Discover what borrowers need to know to adapt to these new realities.

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Quiz

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Q1. What is the name of the repayment plan introduced by the Biden administration?

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Q2. What was the minimum payment required under the new repayment assistance plan starting in July?

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Q3. How long does it typically take for undergraduate borrowers to fully repay their student loans?

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Q4. What percentage of forgiven student loans could be taxable as federal income starting January 1, 2026?

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Q5. What significant change is happening regarding public service loan forgiveness?

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Vocabulary

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borrowers

/ˈbɔːroʊərz/

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Definition

Individuals or entities that take out loans with the promise to repay them.

Example

Many borrowers are struggling to keep up with their student loan payments.

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repayment

/rɪˈpeɪmənt/

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Definition

The act of paying back money previously borrowed.

Example

The repayment of student loans can take many years to complete.

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forgiveness

/fərˈɡɪv.nəs/

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Definition

The act of canceling a debt or obligation.

Example

Student loan forgiveness programs can provide relief for many graduates.

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administration

/ədˌmɪnɪˈstreɪʃən/

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Definition

The management and organization of a government or institution.

Example

The new administration has proposed changes to the student loan system.

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assistance

/əˈsɪstəns/

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Definition

The act of helping or aiding someone.

Example

Financial assistance is available for students who qualify.

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analysis

/əˈnæləsɪs/

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Definition

A detailed examination of the elements or structure of something.

Example

An analysis of student debt trends reveals alarming statistics.

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