Money

How to get access to Biden’s student loan debt “rescue plan”

Published

4 months ago

July 31, 2023

ticker NEWS

The Biden administration is introducing the beta version of its new income-driven student loan repayment plan, called the Saving on a Valuable Education (SAVE) plan.

The plan was devised as an alternative after the Supreme Court rejected President Joe Biden’s student debt forgiveness initiative in June. The SAVE plan represents a significant change in the federal student loan system, aiming to reduce the financial burden for borrowers by lowering their monthly loan payments and overall repayment amounts.

The president’s commitment to improving the student loan system and alleviating student loan debt for American families is a driving force behind the SAVE plan. As federal student loan payments are set to resume in October, borrowers can access the beta website at https://studentaid.gov/idr/ to begin submitting their applications for the program. The enrollment process is expected to be swift, lasting around 10 minutes, and certain sections will be auto-filled with existing government data, including tax returns from the IRS.

One time application

Unlike previous systems, where borrowers had to apply yearly, the SAVE plan only requires a one-time application, making it more user-friendly. The plan allows borrowers to select the most affordable repayment option, and they will receive a confirmation email upon submission. The approval process, which can be tracked online, typically takes a few weeks.

The new plan takes into account income and family size to determine payment amounts, with some borrowers qualifying for payments as low as $0. The income threshold to qualify for $0 payments has been raised to 225% of the federal poverty guidelines, expanding eligibility to more borrowers, estimated to be over a million. Some borrowers could see their payments reduced by half, and after making at least ten years of payments, they may have their remaining debt canceled.

Interest repayments

Unpaid interest will not accrue for borrowers who make their full monthly payments under the SAVE plan. However, implementing the plan comes with a cost to the federal government, estimated to be between $138 billion to $361 billion over a decade, lower than the projected $400 billion for Biden’s initial student loan forgiveness program.

The beta site launch allows the Department of Education to monitor site performance and address any issues before the full website launch in August. Borrowers will need to resume federal student loan payments in October after a three-year pause due to the pandemic.

Despite the setback of the Supreme Court’s rejection of student debt forgiveness, the administration has been taking measures to assist federal student loan borrowers. Recently, the Education Department announced that 804,000 borrowers would have $39 billion of student debt forgiven, owing to more accurate counting of qualified monthly payments under existing income-driven repayment plans.

Money

Tech giants drive global mega-cap surge amid inflation relief

Published

1 day ago

December 1, 2023

ticker NEWS

Tech giants have taken the lead in propelling global mega-cap stocks to new heights.

This surge comes as a welcome relief for investors who have been closely monitoring the impact of rising inflation on the financial markets.

The tech sector, including giants like Apple, Amazon, and Microsoft, has been instrumental in driving the rally. These companies have reported robust earnings and strong growth prospects, which has boosted investor confidence. As a result, the market capitalization of these tech behemoths has reached unprecedented levels, contributing significantly to the overall rise in global mega-cap stocks.

The easing of inflationary pressures has played a pivotal role in this resurgence. Central banks’ efforts to tame inflation through monetary policy adjustments have begun to bear fruit, reassuring investors and stabilizing financial markets. As concerns over rapidly increasing prices recede, investors have become more willing to invest in mega-cap stocks, particularly in the tech sector, which has demonstrated resilience in the face of economic challenges.

Will the tech giants maintain their momentum and continue to lead the mega-cap surge, or are there potential risks on the horizon?

Money

Real reason bosses want employers back in the office

Published

3 days ago

November 30, 2023

ticker NEWS

As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

Money

Businesses cash in on Black Friday sales

Published

3 days ago

November 30, 2023

ticker NEWS

Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured