Biden administration says 5 types of borrowers could qualify for student debt relief |
Like millions of working Americans, I’m still paying back student debt — about $10,000 worth.
I would have been completely debt-free had President Joe Biden's loan forgiveness plan gone ahead. Alas, the Supreme Court struck it down in June, and I’ve become reacquainted with the feeling of having my loan payments evaporate from my checking account every month.
But there’s still hope that forgiveness may be coming, at least for some borrowers.
After the high court’s ruling, the Biden administration began the process of enacting forgiveness through a different legal pathway, by amending the Higher Education Act through a process known as negotiated rulemaking.
At this point in the process — which involves a number of discussions with various stakeholders including borrowers, advocacy groups, lawmakers and more — the rulemaking committee has identified five groups of borrowers who should be considered for debt relief. Borrowers who meet one or more of the following criteria would be eligible: 1. Owe more than they borrowed. 2. Have been repaying loans for 20 years or more.
3. Attended institutions that haven’t demonstrated successful student outcomes. 4. Are eligible for loan forgiveness but haven’t applied. 5. Are experiencing financial hardship.
The proposal would give the secretary of Education the power to waive federal student loan debts for borrowers facing hardship that “is likely to impair the borrower’s ability to fully repay the Federal government or the costs of enforcing the full amount of the debt are not justified by the expected benefits of continued collection of the entire debt,” the draft reads. A proposed draft regulatory text will soon head to the Federal Register. The public will have the opportunity to comment and provide feedback before the new rules go into effect. After the public comment period ends, the Education Department will issue its final rule. If that comes out before November of this year, the regulation could go into effect in July 2025. |
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Money Tip of the Week: You may have extra time to file your tax return — here’s who qualifies
The official deadline to file your 2023 federal tax return is April 15. But you might have additional time if you live in certain areas or are in the military.
For military members in combat zones, the federal tax filing and payment deadline is automatically extended 180 days after the end of your active service in that zone, even after April 15. You can apply for additional extensions if you’re on active duty as well.
For states affected by natural disasters in 2023, the IRS has announced extended federal tax deadlines to give residents more time to file their returns. Residents of California, Connecticut, Maine, Michigan, Rhode Island, Tennessee, Washington and West Virginia all have until June 17 to file and pay.
U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico get an automatic two-month tax filing extension until June 17, 2024. However, unlike the states listed above, any tax payments you may owe are still due April 15.
Anyone who needs more time to prepare their taxes can get an extension by filing Form 4868, which will push the deadline to Oct. 15, 2024. But remember: An extension gives you more time to file, not to pay. If you owe a tax bill and fail to pay it by April 15, the IRS levies penalties and charges interest on what you owe.
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Next Gen Investing: Bitcoin will soon be ‘halved’ — here’s what it means for crypto investors |
Bitcoin’s price has surged 36% since spot bitcoin ETFs were approved on Jan. 10. As of market close on Wednesday, its price was around $62,000.
An upcoming event known as halving could push price growth further.
Halving happens automatically when 210,000 “blocks” are created as part of the bitcoin mining process. This occurs approximately every four years, and it discourages coin production by reducing the reward for mining new bitcoin by half. The last halving event was in 2020, and the next one is expected sometime in April.
Halving is meant to slow the minting of new coins as the cryptocurrency approaches its total supply, which is capped at 21 million coins. The built-in mechanism mimics the scarcity of gold and ensures that bitcoin mining becomes more expensive over time.
“The expectation is that the halving will lead to an increase in price because people expect supply to become constrained,” says Douglas Boneparth, president of Bone Fide Wealth and a member of CNBC’s Financial Advisor Council. “When supply goes down, price goes up, assuming demand remains the same or greater,” says Boneparth, who holds investments in bitcoin and other cryptocurrencies.
Historically, the value of bitcoin increased shortly after its three previous halving events, albeit with diminishing returns with each, according to CoinDesk.
In other words, don’t count on a huge pop in April. Since cryptocurrency investors are anticipating an uptick in bitcoin’s price due the halving, the move may already be baked into the token’s value, experts say. |
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Worth the Money: $280 dishwasher |
Anyone who's said money can't buy happiness has never lived in an apartment without a dishwasher and desperately wanted one. I recently caved and bought the Hava countertop dishwasher, which is compact enough to tuck under my kitchen cabinets, but big enough to fit around four place settings. Setup is straightforward: Plug it in, feed the outlet hose in the kitchen sink, fill up the water tank via a pitcher or hose attached to a faucet, add detergent, and let it run. I've always had clean dishes after the 29-minute speed wash, and longer cycles run upward of an hour. New models are on sale for $279.99, but I got a refurbished version (which works like new) at a discounted $199.99.
— Jennifer Liu, Senior Work Reporter
CNBC Make It independently determines what we cover and recommend in the “Worth the Money” section. Opinions, analyses, reviews, or recommendations have not been reviewed, approved, or otherwise endorsed by any third party. |
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