Happy Thursday! Here is your WealthKeel Weekly, or what we like to call "news you can use!"
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​What we read this week:

​2026 Changes to Student Loans You Need to Know
​Major changes to federal student loans are taking effect in 2026, reshaping both how students borrow and how borrowers repay their debt. Starting July 1, new borrowers will face simplified repayment choices, with most existing income‑driven repayment plans phased out and replaced by just two options: a standard repayment plan and a new income‑based Repayment Assistance Plan. At the same time, the widely used SAVE plan is being eliminated, forcing millions of borrowers to transition to new repayment structures to remain in good standing. These changes significantly reduce flexibility but are intended to simplify a system that has long been criticized for being overly complex.

On the borrowing side, access to federal loans is tightening. Graduate PLUS loans are being eliminated for new borrowers, while new annual and lifetime borrowing caps are being imposed on graduate, professional, and Parent PLUS loans. Unlike prior rules that allowed borrowing up to the full cost of attendance, families and graduate students will now need to plan more carefully for education costs or turn to alternative funding sources. Existing borrowers are largely grandfathered under the current rules for a limited time, but anyone taking out new loans after July 1 will be subject to the updated limits, making financial planning for college more important than ever.

Source: Kiplinger.com
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​Wealth, Millionaire Tax Push Spreads to More States — but the Trend Presents a ‘Challenge,’ Expert Says​
​A growing number of states are moving to raise taxes on high‑income earners and households with significant wealth, as budget pressures and concerns about inequality fuel renewed interest in “millionaire” and wealth‑based taxes. States such as Massachusetts, Maine, and Washington have already approved higher taxes on income over $1 million, while others, including California, Rhode Island, Virginia, and Illinois, have debated or proposed similar measures. Supporters argue these taxes provide needed revenue for public services, while critics warn that relying heavily on a narrow group of top earners can create long‑term fiscal volatility.

Policy experts caution that targeting the wealthy presents structural challenges. High‑income taxpayers tend to have more variable earnings and greater flexibility to shift income timing, relocate, or adjust investment strategies, which can make revenue from these taxes less predictable over time. While progressive taxation is not new, the increased focus on the top 1% raises questions about sustainability and economic behavior, particularly if states start competing and potentially driving away high earners. The trend reflects a broader debate over how states should balance fairness, revenue stability, and economic growth.

Source: CNBC.com
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​1 in 2 AI Medical Responses Flagged As Problematic In New Study​
​A recent analysis found that about half of medical responses generated by popular AI chatbots were flagged as problematic, raising serious concerns as more people turn to these tools for health guidance. Researchers tested five widely used AI models with real‑world health questions across areas such as cancer, vaccines, nutrition, and athletic performance. Roughly 30% of responses lacked key context or overstated weak evidence, while nearly 20% were considered highly problematic, meaning they could plausibly lead someone toward ineffective or harmful decisions if followed without professional input. The risk was especially high with open‑ended questions, which better reflect how people actually seek health information.

What makes the issue particularly concerning is that misleading answers often sounded confident and authoritative, sometimes accompanied by incomplete, inaccurate, or entirely fabricated citations. That polish can make flawed advice harder for users to recognize and question. Researchers emphasized that these tools are not reasoning like clinicians but predicting language patterns, which can amplify misinformation in areas already flooded with conflicting claims. While AI can be helpful for general education, the findings highlight the importance of treating medical chatbot output as a starting point, never a substitute for qualified medical advice or clinical judgment.

Source: mindbodygreen.com
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🧩 The WealthKeel Wordle! Click here → WK Wordle to play. The clue this week is: “An important part of a balanced diet.”
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A random note or thought for the week: It has been a bit since we added some larger student loan updates, so let’s do that this week. ⬇️

Tax Rules Have Changed. All student loan forgiveness was tax-free from 2021–2025. Starting January 1, 2026, that shifted. 👎 (Now fully taxable again)

PSLF forgiveness remains tax-free. Standard IDR forgiveness (20- or 25-year plans) is now taxable again — unless it’s PSLF, death, or disability.

Important nuance: If you qualified in 2025 but the actual discharge happens in 2026, it stays tax-free. Qualify and get discharged in 2026 or later? Expect a tax bill on the forgiven amount.

We know this is frustrating. The first big wave of 1099s will likely hit early 2027. As more borrowers receive forgiveness, we expect this to become a major political flashpoint heading into the midterms. Rules could shift again — especially for those with forgiveness dates in the late 2020s or early 2030s. Never a dull moment. 🤦‍♂️

Tracking & Discharge Progress: The Department of Education is now signaling they may bring back the IDR forgiveness tracker. That would help the many borrowers on standard IDR plans who’ve been without any reliable counter since early 2026. This would be a win, and something we did not see coming.

PSLF borrowers can still track progress through annual recertifications, but everyone else has been in the dark. If the tracker returns, expect glitches — be ready to review your counts closely and push for corrections.

On the positive side, we’re finally seeing more PAYE and ICR discharges moving through. There was a long stretch with almost no activity, but things are picking up.

PSLF buyback is also seeing limited movement, though the Department is still overwhelmed and processing fewer applications than they receive each month.

Important Regulatory Notes for Current Borrowers

• Parent PLUS loans are the biggest watch item. If you haven’t consolidated by July 1, you’ll lose access to all IDR plans and PSLF. If you have consolidated, you’re in better shape — just make sure you complete one ICR payment before switching to IBR (even if you were previously approved for other plans).
• Future borrowers in fields like nursing, PA, or PT may face tighter borrowing limits, but this doesn’t affect existing loans.
• Transition details out of SAVE forbearance are still being finalized for many borrowers.

Bottom line: Progress is happening on discharges and tracking, but the landscape remains complex — especially with the new tax implications. If you have Parent PLUS loans, prioritize consolidation now. For everyone else, stay proactive on your repayment plan and forgiveness timeline.
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Go Bs! Go Bolts! 🏒 The Bruins won a thriller in OT last night (beautiful goal by Pasta to win it 🍝 ), and Ryker and I are headed to Game 5 tonight for the Bolts. (Typing this on Wednesday afternoon.)
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Have a wonderful rest of your week, and an awesome weekend! 😁
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Have a great day,
Your WealthKeel Team
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​Disclosures​