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Tips for Navigating the ‘Chaotic System’ of Student Loan Repayments

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Tips for Navigating the ‘Chaotic System’ of Student Loan Repayments

So you’re about to graduate from college. Congratulations. But now you have to think about finding a job and, sooner than you may prefer, starting to repay your student loans.

It’s especially important to understand your options, experts on student borrowing say, because many aspects of the federal student loan system are in flux.

The system, which has always been challenging to navigate, is only now creaking back into full operation after years of Covid-era pauses on payments and collections. And court challenges to a low-cost repayment option, along with program changes floated by the Trump administration and House Republicans, have created a potentially confusing environment for new graduates.

“They’re graduating into a time of uncertainty around what their repayment options will look like,” said Abby Shafroth, the director of the National Consumer Law Center’s Student Loan Borrower Assistance Project.

One repayment plan, known as SAVE and introduced by President Joseph R. Biden Jr., significantly shrank monthly student loan payments depending on a borrower’s income and household size. But the program is in legal limbo because of a court challenge by two groups of Republican-led states. It’s unavailable now, and may not remain an option.

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Three other, less generous “income-driven” repayment plans that link monthly payments to a borrower’s income remain available, but details could change. A measure under review in the House would reduce the various income-linked options to just one.

“Borrowers are getting dropped into a chaotic system that’s changing in real time,” said Winston Berkman-Breen, the legal director at the Student Borrower Protection Center, an advocacy group.

The upshot is that new graduates should keep in mind that the repayment plan they initially choose may look different in the coming months or years, depending on court decisions, government action and the effective date of any changes.

“They should focus on what’s available now and which plan makes the most sense now,” Ms. Shafroth said, “and expect they may have to revisit options later.”

Here’s what to know.

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Most federal student loans come with a grace period of at least six months after graduation. So you have some breathing room to get your life sorted and to choose a repayment plan. If you graduate in May, you typically won’t have to start paying until around November.

Student borrowers are required before graduation to complete student loan “exit counseling” — often via a 30-minute online tutorial — to learn about their loan obligations and repayment options. Pay attention to the information because it can keep you on track, said Michele Zampini, the senior director of college affordability with the Institute for College Access & Success, an advocacy group.

Familiarize yourself with the available repayment plans, said Betsy Mayotte, the president of the Institute of Student Loan Advisors, which offers free assistance to borrowers. You can check the Federal Student Aid website to compare options and see any updates that may affect your loans.

It may sound obvious, but make sure that your loan servicer — the company that the Education Department has hired to send statements, collect payments and otherwise manage your loan — knows how to get in touch with you once you leave school, Ms. Mayotte said.

If you don’t know which servicer you have, log on to your account at the federal StudentAid.gov website to find out. Then get in touch to update your contact information, including your addresses for both email and physical mail. (You probably created the account when you applied for financial aid using the Free Application for Federal Student Aid, or FAFSA, form.)

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If you have loans from outside the federal government, such as a private bank, those won’t show up on the Federal Student Aid website. If you can’t find the original loan documents, try looking for the lender’s name on your credit report, Ms. Mayotte said.

Some experts said borrowers should apply as soon as possible for an income-driven plan to get their applications in the queue. But Scott Buchanan, the executive director of the Student Loan Servicing Alliance, an industry group, said borrowers in a grace period should wait to submit an application for an income-driven plan until a month or two before they are scheduled to start paying. If they apply more than 90 days before then, he said, their servicer will reject it as a “stale” application. For those who have to start paying in November, he said, submitting a form in September makes sense.

On the other hand, Mr. Buchanan said, don’t wait until the last minute or you’ll end up scrambling to put a plan in place.

Processing of income-driven repayment plan applications had been on hold as a result of the legal challenge to the SAVE plan. But the Federal Student Aid website, last updated on Monday, says that servicers “have begun processing applications” and that the site will be updated as new information becomes available. There is a backlog of some 1.9 million applications.

Your monthly payment amount depends on which repayment plan you choose. The standard plan — the default option, unless you choose another — calls for repaying loan balances in 10 years.

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Income-driven plans can lower your payments by tying them to your income level and household size. The repayment period, depending on the plan, lasts 20 to 25 years.

To get payment estimates under the various options, enter information about yourself and your loans into the Education Department’s online “loan simulator” tool.

Mark Kantrowitz, a financial-aid expert, advised borrowers to choose the plan with the highest payment they can afford. They’ll pay less interest over the life of the loan and will pay off the debt sooner. Borrowers can use “forbearances,” or temporary deferments, during short-term financial struggles and switch to a more affordable plan for longer-term difficulties.

Yes, but it’s complicated. For instance, borrowers in the Income-Based Repayment plan, which Congress created, can continue to have their loans forgiven if they make enough qualifying payments.

The Education Department, however, has temporarily paused time-based forgiveness for borrowers in two other income-driven plans, known as Pay as You Earn (PAYE) and Income-Contingent Repayment (I.C.R.), because a court ruling on the Biden administration’s SAVE plan raised questions about those plans as well.

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Payments made in PAYE and I.C.R., however, can still count toward forgiveness if the borrower transfers to an Income-Based Repayment plan later, Ms. Shafroth said. She added that payments in PAYE and I.C.R. still counted toward the public-service loan forgiveness program, which erases remaining loan balances after 10 years of work in public-sector or nonprofit jobs. (People using the public-service option generally enroll in an income-driven plan.)

Additional changes may be coming. The Trump administration has solicited public comments on a review of the public-service program. President Trump signed an executive order in March that said the administration planned to exclude from the program certain organizations, such as those that “advance illegal immigration.”

Hundreds of comments have been posted online, many of them in support of the public-service program. Comments will be accepted through Thursday.

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Steven Spielberg’s ‘Disclosure Day’ takes the box office crown

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Steven Spielberg’s ‘Disclosure Day’ takes the box office crown

Steven Spielberg’s latest sci-fi thriller, “Disclosure Day,” topped the box office this weekend, an encouraging sign for what could be a big summer for theaters.

The film, which stars Emily Blunt and Josh O’Connor, brought in $44 million in the U.S. and Canada for a worldwide total of $92.9 million, according to studio estimates. The opening weekend totals beat box office analysts’ expectations of about $40 million to $50 million.

“Disclosure Day” is Spielberg’s latest alien-centric movie that charts a desperate race to show the world the truth about extraterrestrials.

The film, which had a production budget of about $115 million, was also scored by legendary composer and longtime Spielberg collaborator John Williams, who is now 94 years old.

Spielberg described the film in April as “way closer to truth than fiction” during a speech at the CinemaCon trade convention in Las Vegas. The veteran director of 1977’s “Close Encounters of the Third Kind,” 1982’s “E.T. the Extra-Terrestrial” and 2005’s “War of the Worlds” said at the time that he’s been curious about “what’s going on in the night” since he was a child and “been very fixated on the possibilities.”

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Focus Features’ “Obsession” came in second at the box office with a domestic haul of $19 million, a continuation of the film’s strong run in theaters.

“Scary Movie,” “Backrooms” and “Masters of the Universe” rounded out the top five at the box office.

Recent box office performance — particularly with Gen Z hits “Obsession” and A24’s “Backrooms” — along with a slate of upcoming blockbuster franchise installments has buoyed the hopes of exhibitors and studio executives for a strong summer.

Next week, Walt Disney Co. and Pixar will release “Toy Story 5,” while Warner Bros.’ DC Studios has “Supergirl” landing in late June.

Universal Pictures and Illumination’s “Minions & Monsters,” Disney’s live-action “Moana,” Christopher Nolan’s “The Odyssey” and Sony Pictures’ “Spider-Man: Brand New Day” are all slated for July.

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That steady cadence of new and different films is key for a healthy box office and a successful summer, said Daniel Loria, editorial director at the Box Office Co.

“We’re seeing that momentum come back on a weekend-by-weekend basis,” he said. “What we needed to get back to a healthy industry post-pandemic is consistency, and that’s the difference here in 2026.”

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L.A. drivers are finding ways to adjust to the country’s highest gas prices

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L.A. drivers are finding ways to adjust to the country’s highest gas prices

As inflation rates rise to their highest in years, Californians are again getting hit the hardest at the gas pumps, with a regular tank costing upwards of $100 at some stations in Los Angeles.

Inflation figures released this week show consumer and producer price rises at more than three-year highs, driven by the energy crisis stemming from the war with Iran.

Gasoline prices took the biggest bite out of consumer spending power, with prices up 41% in May from a year earlier.

While the national average for gasoline prices is a little above $4 per gallon, in California, it is near $6 per gallon. In a small number of gas stations in Los Angeles, it is even tipping toward $7.

When asked about inflation in the Oval Office on Wednesday, President Trump told reporters the numbers looked great.

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“I love inflation,” Trump said. “The numbers are going to be phenomenal because what’s showing is that despite the fact that we’re in a war, the numbers are much lower than anticipated, and when we’re out of that war, the numbers will be at lower numbers than they were even before it started.”

Consumers aren’t feeling the love.

Workers in front of a crude oil storage container at Sable Offshore Corp.’s Santa Ynez Unit in Santa Barbara on Friday, June 5, 2026. California producer Sable Offshore Corp. expects to restart a platform capable of pumping 10,000 barrels of oil a day some time in the third quarter this year, the company said in an investor presentation Monday.

(Caroline Brehman / Bloomberg)

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The Costco gas pumps in Inglewood were busy Thursday morning, with a constant flow of cars looking to save money on its relatively low per-gallon price of about $5.50.

Inglewood resident Eddin, who chose to not give his last name, said even though his Honda Civic isn’t a big gas guzzler, he has switched to using his girlfriend’s hybrid for longer trips.

“We just take her car now just because it’s more cost-effective,” he said as he filled his tank. “I wish there was more the government could be doing for not just gas prices, but for prices in general. It seems like prices have gone up for everything.”

The unforgiving prices at the pump are set to make everyone’s summer more expensive. After gas, the largest price rise for consumers was in airline tickets, which jumped 27%.

Even staying home doesn’t shelter shoppers — the beef they might want to put on their backyard barbecues is up 15%.

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Virginia resident Mario, who also opted to not give his last name, got hit twice with the inflation tax as he left Los Angeles this week. He was paying more to refill his rental as he headed for a flight home, after having paid much more for the ticket than earlier in the year.

“All of the flights are way more expensive than they used to be,” he said as he paid almost $5.80 per gallon at the 76 on Century Boulevard near Los Angeles International Airport.

The average price for a gallon of gas is around $3.90 in Virginia.

While the surge in prices is happening around the world, gas costs more in California than almost anywhere else because of higher taxes, fees and cleaner-fuel requirements.

The state’s gas supply is also particularly vulnerable because it has lost much of its drilling and refining capacity in recent years, making it more dependent on fuel from other states and countries.

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As gas prices continue to climb in L.A., locals are forced to adjust their lives to the price at the pump. For some, that includes cutting back on other necessities such as food, budgeting strictly to afford half a tank of gas a week and rethinking side hustles such as food delivery service.

Public transit has become a more favorable option for some — weekday commutes on the Metro increased by nearly 8% from January to May.

Recent reports have shown a decline in spending on expensive household goods, and credit card data show that both luxury and discount shoppers spent less than usual recently on lodging, groceries, clothes and theaters to accommodate a larger gas budget.

Another Inglewood native who opted to not give her last name, Liz, is putting off filling up her gas entirely because it is so expensive. Instead, she makes more frequent visits, putting a little gas in her car at a time.

“I have to budget and do half a tank now, and half a tank later, or ask for an advance on my paycheck just to get gas,” she said.

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Most people at the pumps agreed: Something needs to change.

Wayne Faulkner is from Los Angeles but now lives in Indiana, where gas is about $3.50 per gallon. He complained as he filled up his rental at the LAX stand.

“Our gas situation is much better than here,” he said.

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Anthropic shuts down Mythos access after sweeping U.S. order

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Anthropic shuts down Mythos access after sweeping U.S. order

Anthropic PBC has disabled access to its most advanced artificial intelligence models, including Mythos, following an unprecedented order by the Trump administration to keep the technology out of the hands of all foreign nationals.

The U.S. government told Anthropic to suspend access to the Fable 5 and Mythos 5 models by any foreign national “whether inside or outside the United States,” citing national security concerns, the company said in a statement.

A U.S. official confirmed that the Commerce Department sent the letter. The model developer has since shut off access to both systems to all customers to ensure compliance.

Never before has the U.S. government taken such sweeping measures to rein in foreign access to frontier AI models developed by an American company. The Trump and Biden administrations have limited access abroad to other consequential technologies such as semiconductors and supercomputers, and some have debated the merits of blocking access to AI models. But restrictions on the software itself have raised constitutional and commercial concerns.

Anthropic said it believes the U.S. government issued the order after discovering that it’s possible to “jailbreak,” or bypass the guardrails, of Fable 5, a recently released version of Mythos that the company blocked from carrying out cybersecurity tasks.

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“We disagree that the finding of a narrow potential jailbreak should be cause for recalling a commercial model deployed to hundreds of millions of people,” Anthropic said in its website post. “If this standard was applied across the industry, we believe it would essentially halt all new model deployments for all frontier model providers.”

Researchers at Amazon.com Inc. had conducted jailbreak research that revealed some vulnerabilities in Anthropic’s model, according to a report in the Wall Street Journal.

Amazon and the U.S. government were in contact about the vulnerability before the controls were imposed, according to people familiar with matter who were granted anonymity to discuss sensitive conversations. Amazon Chief Executive Andy Jassy was involved in those exchanges, one of the people said. The Information reported earlier that Jassy raised concerns to senior U.S. officials.

An Amazon spokesperson said it’s not uncommon for governments to consult with the company on security risks, but declined to share details of any such discussions.

The government’s move to so widely restrict access to a set of AI models in the name of national security threatens to set a precedent for all major AI model developers including OpenAI, Alphabet Inc.’s Google and Meta Platforms Inc. Industry leaders such as Nvidia Corp. Chief Executive Officer Jensen Huang and OpenAI CEO Sam Altman have in the past encouraged the US government to instead promote worldwide adoption of American AI systems and protect the nation’s lead.

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“For anyone who was naive and perhaps hoping that this leverage wouldn’t be exerted, it’s a massive wake-up call,” Aidan Gomez, the co-founder of Cohere Inc., a Nvidia Corp.-backed AI startup, said Saturday in an interview. “No one can deny it any more.”

Anthropic said it received the government order at 5:21 p.m. New York time on Friday. The end-of-day directive runs counter to earlier statements, as well as an executive order recently signed by President Trump, which suggested the administration wouldn’t pursue a licensing regime for model reviews.

Friday’s directive also threatens to escalate long-standing tensions between Anthropic and some within the Trump administration. Earlier this year, the AI developer clashed with the Pentagon over the use of its technology for military and surveillance purposes. The administration declared the company a U.S. supply-chain risk as a result of the blowup and ordered U.S. agencies to phase out the use of its products.

Privately held Anthropic, which has long positioned itself as a more responsible AI developer, first released its Mythos model in April to a very limited group of companies and institutions, warning that its ability to find cybersecurity vulnerabilities made it too risky to distribute more widely.

There were signs that the limited release was working to ease tensions between Anthropic and the Trump administration: In April, the U.S. government was preparing to make a version of Mythos available to major federal agencies, Bloomberg previously reported.

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Mythos also accelerated the Trump administration’s efforts on AI policy, which included the recent executive order that called for voluntary model review. That order explicitly said that nothing in it should be construed as creating a mandatory licensing regime.

David Sacks, Trump’s former AI czar and current co-chair of the President’s Council of Advisers on Science and Technology, said that Anthropic refused to fix a jailbreak of the guardails in its Fable model.

“The Admin’s hope now is that Anthropic remediates the safety issue, the export control is lifted, and Fable goes back into general release,” he wrote in a post on X. “The Admin wants all of this to happen as soon as possible. It is frankly bewildered that Anthropic hasn’t wanted to comply with safety requests that it previously said were its highest priority.”

The latest government restriction is colliding with a race among U.S. developers to deliver the most advanced AI models and prove to their investors that the technology can turn a profit. Both OpenAI and Anthropic are seeking initial public offerings as soon as this year, following SpaceX’s own historic IPO.

The rush to deliver the most cutting-edge AI models spurred Anthropic itself to post a lengthy blog earlier this month, calling for the creation of a system in which governments and AI developers collectively decide when to slow work on the technology to stave off the risks it may pose.

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“It would be good for the world to have the option to show or temporarily pause” AI work that may be dangerous, the company said in the post at the time. AI is advancing to the point where the technology can make human work thousands of times more efficient or even replace it, creating a new set of risks, the company said.

The European Union’s executive arm said that it’s assessing Anthropic’s statement and is continuing to talk to allies about the potential risks and cybersecurity concerns related to powerful new AI models. The European Commission added that the latest developments underline Europe’s need for technological sovereignty.

‘“s a person in the field, I’m not particularly thrilled to see this,” said Cohere’s Gomez. “I don’t think this is partnerly, I don’t think this is the right thing to do for the broader technological alliances that have developed over the course of the past 80 years.”

Eastland and Lowenkron write for Bloomberg. With assistance from Shirin Ghaffary, Yi Wei Wong, Gian Volpicelli, Spencer Soper and Thomas Seal.

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