Student loan borrowers may still owe thousands of dollars after reaching full forgiveness, as the rules around taxes have changed in President Donald Trump 's second term.

Student loan forgiveness can sometimes bring about a tax bill known as a "tax bomb" if you're mandated to pay taxes on the forgiven amount. This often can impact borrowers on income-driven repayment plans who have made payments for years.

Why It Matters

While the Biden administration focused on implementing key student loan forgiveness initiatives, Trump's Department of Education prioritized having borrowers make full payments, often on a faster or more aggressive timeline.

The changing tax rules could mean a higher financial burden for borrowers who once believed they would be done paying their loans off once th

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