Biden administration forgives $39 billion in student debt — here’s who qualifies |
The Biden administration announced Friday it would be automatically forgiving $39 billion in student debt for some 804,000 federal borrowers as the result of fixes to income-driven repayment plans.
Under IDR plans, borrowers become eligible to have any remaining balances forgiven after 20 or 25 years of repayment, depending on the loan type and when it was taken out. But those payments were notoriously poorly tracked, the Department of Education says, leaving the majority of borrowers unable to get relief. In essence, those receiving relief are being given credit for periods of repayment that weren’t previously counted. Those include: -
Any month they were in a repayment status regardless of loan and repayment plan type, and whether the payment was late or partial.
- Any forbearance period lasting 12 or more consecutive months.
- Any month they had loans in deferment (except for in-school deferment) before 2013.
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Any month they received an economic hardship or military deferment on or after Jan. 1, 2013.
The Department of Education began notifying borrowers on Friday if they qualified for forgiveness. You needn’t take any further action if you’re eligible. Loan discharges will begin 30 days after you’re notified, and your loan servicer will inform you that your debt has been discharged. If you’re eligible for forgiveness, your payment will be paused until your discharge is processed. |
Money Tip of the Week: What to do if you hit the $1 billion Powerball jackpot
If you bought a ticket for Wednesday's estimated $1 billion Powerball drawing, you may already be daydreaming about what you’ll do with all that money.
But if we can interrupt your Zillow search for properties in Malibu for a second, there’s some logistical stuff that comes with winning, too. If your numbers are drawn, here’s what certified financial planners recommend doing before claiming the jackpot.
1. Prove the ticket is yours. Take a selfie or video of yourself with the winning ticket, with the numbers clearly visible. Smartphone images typically include metadata, such as the date and time the photo was taken, which will help you if there’s a legal dispute about ownership of the ticket. 2. Keep quiet. “Having worked with several lottery winners in my career, the long-lost relatives, friends and sob stories that come out of the woodwork when your name and likeness are splashed over the news is astounding,” says Amy Hubble, a CFP in Oklahoma City. “Not to mention the risk to your family’s personal safety.” 3. Secure your ticket. Keep your winning ticket in a safe location, preferably in a safety deposit box at your bank or in a personal safe. Don’t leave it somewhere where it could get lost or thrown out.
4. Get some advice. Depending on where you live, you have 90 days or more to claim your prize. That will give you time to assemble a team to help deal with the financial ramifications of a huge windfall. A certified financial planner can help you adjust to your new wealth without overspending or squandering your fortune. You should also consider hiring a tax pro and an estate attorney. |
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Next Gen Investing: 2 ways to use A.I. to make money right now |
Artificial intelligence isn’t just a tool to make your current work easier. If used correctly, it could also be your next source of income, says Matt Higgins, CEO of investment firm RSE Ventures and a guest star on ABC’s “Shark Tank.”
“It’s going to destroy barriers that have prevented people from moving up the ladder, and pursuing their dream of economic freedom,” he tells CNBC Make It.
That may seem like a bold prediction, but the AI market is expected to grow rapidly in the coming decades. “Now is the greatest opportunity for you to capitalize on it,” Higgins says. Here are two ways experts say you can start using AI to make money right now.
1. Freelance work. Today’s generative AI tools already allow you to create digital products, such as workbooks and audiobooks, faster than a human could ever make them. Kristen Walters, a lawyer turned entrepreneur and publisher, recently used an AI tool called Jasper to create an outline for a workbook titled “Money Management for Freelancers” in less than 30 seconds. She then revised and edited the outline, turning it into a workbook that she formatted on Canva and sold online.
2. Entrepreneurship. AI can’t create and run a business for you. But it can help entrepreneurs “improve their business, improve inventory management, analyze customer behavior or gain competitive intelligence,” says Susan Gonzales, founder and CEO of AIandYou, a nonprofit that teaches AI skills to people from marginalized communities. “Small businesses can use AI tools to target their marketing and advertising efforts more effectively. ... They can identify new revenue opportunities.”
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Worth the Money: $58 planner |
Despite doing all of my actual work on a computer, almost nothing gets done for me if it’s not written down in my physical paper planner. Years ago, I received a Day Designer daily planner ($58 to $68) as a gift, and ever since I’ve dutifully bought one each year. I love that each day of the year has its own page and each page has spaces for multiple lists as well as additional notes. As planners go, it’s neither cheap nor especially small, but for work, nothing keeps me more organized.
— Hanna Howard, Senior Work Editor |
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