The federal student loan system is in crisis, and advocates for borrowers are warning that the situation will likely get even worse for those in repayment and for borrowers pursuing student loan forgiveness, following President Donald Trump’s executive order on Thursday calling for the U.S. Department of Education to be eliminated. The order also suggested that the federal student loan system should be privatized. Millions of borrowers, particularly those in income-driven repayment plans or who are pursuing student loan forgiveness, are currently facing major challenges. The SAVE plan, a Biden-era repayment program that lowered payments for many, remains frozen as…

Social Security: Massive Changes Started In March Millions of Americans have started to or will soon see significant changes in their Social Security benefits as new laws and policies take effect in March 2025. Some of these changes are unequivocally positive while others are more mixed. Many individuals will be thrilled with the rollout of the Social Security Fairness Act —which repeals the Windfall Elimination Provision and Government Pension Offset —triggering a wave of retroactive payments and monthly benefit increases for affected retirees​. At the same time, a controversial policy reversal means Social Security will resume withholding 100% of benefits…

Trump-induced chaos is making financial matters much worse for schools. Moody’s has just downgraded its outlook for higher education for 2025 from stable to negative citing the actions the government has taken and is threatening to take against colleges and universities. Most colleges and universities have been beset by financial challenges for a number of reasons over the last several years including enrollment challenges both because of the demographic cliff and because there are fewer students who are willing and/or able to pay the tuition as well as the inability to quickly adjust to changing market demands. We have witnessed…

If you want to retire in or to California, you may wonder how California will take your Social Security and other retirement benefits. There is some good news and some bad news here. The good news is that regardless of where you choose to retire in California, you will not owe state taxes on your Social Security benefits. However, California will still take a chunk of your other retirement income sources. The ok news is that while California has a reputation as a high-tax state, you may or may not owe a high amount of taxes on other retirement income.…

Trump’s Department Of Education Executive Order President Donald Trump has officially signed an executive order and said during a White House event that he is initiating action to “begin eliminating the Department of Education, once and for all.” This unprecedented move comes despite legal limits requiring an act of Congress to abolish the Department entirely. “We are going to shut it down and shut it down as quickly as possible,” Trump said. During the event, Trump did not say anything specific about the student loan program, but earlier in the day his press secretary, Karoline Leavitt, said to reporters: “The…

A recent Barron’s article made the case for retirees being able to withdraw 5% per year from their portfolios, opening with, “It’s time to throw out the 4% rule and give your retirement paycheck a raise.” The sentiment is a sharp contrast from the publication’s 2022 article floating the idea that retirees might need to downgrade from 4% to 1.9%. Even the Wall Street Journal has wavered, platforming an academic paper that found “. . . A retiree who wants no more than one-in-20 odds of ‘financial ruin’ should withdraw just 2.26% a year.” Each percentage point can represent significant…

Student loan borrowers in income driven repayment plans, such as Income Based Repayment (IBR), Pay As You Earn (PAYE), and Income Contingent Repayment (ICR), have been in limbo for the last month wondering if they are able to keep their existing student loans payments or not. Borrowers in these plans are required to certify their income and family size annually in order to accurately assess what their monthly student loan payment would be. Failure to recertify on time can result in payments rising significantly. Yesterday, Federal Student Aid released guidance to their loan servicers to move recertification dates impacted by…

This article explores secured and unsecured loans, comparing their pros, cons, and suitability if you have poor credit. It will also cover key factors to consider when choosing between the two and provide alternative financing options for those who may not qualify for traditional loans. Comparing Secured And Unsecured Loans What Are Secured Loans? A secured loan is a type of loan that requires collateral—an asset that you pledge to the lender as security. This collateral can be in the form of a car, house, savings account, or any valuable asset that reduces the lender’s risk. Because of this added…

Most people weren’t expecting the Federal Reserve’s Federal Open Market Committee to cut interest rates, and they didn’t. The benchmark federal funds range — the range of interest rates banks charge one another for overnight borrowing — remains 4.25% to 4.50%. The real news is in everything else. Where The Economy Was Going Until December 2024, the growing assumption was that after a period of swiftly growing inflation and then time with higher short-term interest rates the Fed used to control the price increases, the country was coming to a rare so-called soft landing, where inflation would finally return to…

For homeowners seeking to reduce their monthly mortgage payments without the hassle, credit checks, or expense of refinancing, mortgage recasting might offer a simple and cost-effective solution. But what exactly is mortgage recasting, and how does it differ from refinancing? This article breaks down the concept of mortgage recasting, compares it to refinancing, and explores the advantages and disadvantages to help you determine if it’s the right move for your financial situation. What Is Mortgage Recasting? Mortgage recasting allows you to reduce your monthly mortgage payments by making a large, one-time payment toward the principal balance of your loan. After…