IDR Application Processing Backlog Hits 2 Million Student Loan Forgiveness Borrowers A status report filed in federal court on May 15 reveals that 1,985,726 income-driven repayment applications were still pending as of April 30, 2025. That same month, only 79,349 IDR applications were processed. This means less than 4% of the backlog was addressed in April, leaving almost 2 million student loan borrowers still stuck waiting for their IDR applications to be processed and on the path towards lower payments and student loan forgiveness. April’s throughput is likely not representative, given that student loan servicers were only processing a portion…

The U.S. has been ignoring its fiscal condition and its credit rating for decades. Even now that Moody’s, following Standard & Poor’s (technically, S&P Global these days) and Fitch’s Ratings, downgraded the U.S. credit rating from the top AAA to AA+, many people won’t care. Nothing may happen immediately, meaning that politicians might not act, thinking that all will be well. In the short run, it might seem that way. In the long run, probably not. The drop in rating is ultimately important in itself, but the true issue is how the country treats its budgets and debts. I asked…

In August of 2021 hackers offered for sale on the Dark Web data of what they said was 100 million customers of phone carrier T-Mobile. This was the first indication that T-Mobile had been hacked. Soon hereafter T- Mobile confirmed the data breach but said that the number of people affected was approximately 76 million people. The information being sold included names, phone numbers, Social Security numbers and addresses. Also being sold were the PINS used by some T-Mobile customers to protect their accounts from identity theft. This type of information poses a tremendous threat of identity theft to victims…

Isn’t it ironic that the very systems meant to broaden our horizons – education, career, and finances – so often tend to box us in? I have two children currently in college, one who just completed his freshman year and the other, his junior year. And it’s amazing to me how much apparent certainty is expected of young people at a time in life when they have far more questions than answers. You choose the college, then the major, then the concentration, typically before gaining any hands-on experience. Not until then have you added an internship to your resume, only…

The Internet of Things is made up of a broad range of devices connected to the Internet including home thermostats, security systems, medical devices, refrigerators, televisions, smart televisions and toys. Our homes have become filled with these devices including Alexa and Siri. One device that people hardly give any thought to is your smoke detector. Newer, sophisticated smoke detectors have the capability to send data to your phone or the manufacturer which they do through your router and this makes them vulnerable to being hacked. There has even been a trend in recent years in the sex toy industry to…

Federal government workers have faced a lot of pressure, including mass layoffs, buyout offers that haven’t yet been approved or funded by Congress, and uncertainty about agency downsizings or even eliminations. Proposed changes to the Federal Employees’ Retirement System have added to the worry and anger among federal workers. Why FERS Changes Are A Concern People entering government service know they are accepting lower salaries than in the private sector for stronger benefits. FERS is an important example that is difficult to duplicate. There are three parts to FERS, according to the U.S. Office of Personnel Management. One is Social…

The MAGA Account could simply be a case of overcomplicating a straightforward solution. The news hit this week with a flurry of articles. The House and Senate are considering what is being called a “MAGA Account,” short for the “Money Account for Growth and Advancement.” The proposal has taxpayers funding $1,000 to every baby born in the years 2025 through 2028. In addition, it would allow parents, family, or friends to add contributions up to $5,000 per year until the child turns eight. If this sounds familiar, it’s because it is. The concept of government-subsidized “baby bonds” was first proposed…

The Department of Education revealed on Thursday that 96% of income-driven repayment requests for more than two million student loan borrowers remain unprocessed, as loan servicers struggle to work through a massive backlog of applications. And the situation may be about to get much worse. The information was unveiled in a court-ordered filing this week in an ongoing legal challenge brought by a national teacher’s union over stalled IDR applications. The union and the department had reached an agreement whereby the litigation would be paused while the department releases publicly available updates on IDR processing every 30 days. This week’s…

Trump Policy Reinstates Social Security Benefits Seizure For Defaulted Student Loans For older Americans with defaulted student loans, the resumption of student loan garnishment by the federal government could drastically cut their Social Security benefits, potentially leaving them with just $750 per month to live on. While a Biden-era rule had shielded a larger portion of Social Security benefits from seizure, the Trump administration has reverted to a decades-old garnishment policy that lowers the protected amount significantly. Under President Joe Biden, defaulted student loan borrowers on Social Security were poised to be protected up to 150% of the federal poverty…

The job outlook for the Class of 2025 is murky, and the Federal Reserve’s interest rate decisions are a big reason why. The Fed doesn’t hire or fire workers, but its interest rate decisions influence how much it costs businesses to borrow, invest and expand. Higher interest rates can lead companies to slow hiring, while lower rates may do the opposite. Right now, those rates are high—and have been for more than a year—as the Fed tries to bring down inflation. A pause on rate hikes is currently in place, but possible cuts later this year could shift the hiring…