Recent measures taken by the government to help relieve financial pressures on student loan borrowers have met resistance. This resistance has made the near future somewhat uncertain for those with student loan debt. If you're paying off a student loan, you might be wondering what to do with the money you planned to use to make payments. Read on to learn some of the ways you can use your extra money until student loan payments pick back up. Key Takeaways The U.S. Department of Education worked with the federal government to enact emergency forbearance of eligible federal student loans due to the COVID-19 pandemic. Measures taken include payment suspensions, 0% interest, cessation of collection activity, and loan forgiveness of up to $20,000. The original forbearance period began in March 2020 but has been extended six times. Student loan forgiveness was blocked by federal courts in November 2022, resulting in the Department of Education placing a hold on all payments … [Read more...] about Uses for Your Money Before Student Loan Forbearance Ends
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What Is Student Loan Deferment? A student loan deferment lets qualified applicants stop making payments on their loans or reduce their payments for up to three years. No interest accrues on federally subsidized loans during the deferment period because the government picks up the interest payments. If the loans are unsubsidized, interest does accrue and is added to the amount due at the end of the deferment period . Deferment is considered a temporary measure. If you foresee that you'll be unable to resume your student loan payments in three years or less, you should consider an income-driven repayment (IDR) plan instead. The information below is based on the usual principles of student loan deferment, not the special regulations that were in effect as a response to the COVID-19 pandemic . Key Takeaways Student loan deferment allows you to stop making payments on your loan for up to three years but does not cancel the loan. You must apply and qualify for … [Read more...] about What Is Student Loan Deferment? Who Qualifies and How to Get It
ILLUSTRATION BY RUTH MACAPAGAL Are you having a hard time sticking to your discipline once you have listed your New Year’s resolution? Are you the one who likes to put things off until the year changes? I have three tips for you to become productive this Christmas season without waiting for 2022 to end. And here is the brutal truth, New Year’s resolution does not work because it lacks focus. How would you be able to accomplish five to 10 major things in a year? Sometimes, that list ranges from saving a certain amount of money to losing a certain weight to becoming a vlogger and opening an online store all at the same time. That is an exhausting and daunting work, and human nature tends to avoid what is difficult. 1-percent progress a day improves your life every day Are you a firm believer of overnight success? Do you wish to eradicate all your debt one day? Sad to say, life is not an overnight success. There is also no one-time big-time jackpot thing. Everyday, we are given … [Read more...] about Sorry to say, your New Year’s resolution won’t work
The major downside to cryptocurrency is the risk of loss, which is even more difficult to manage when a crypto company is holding your coins. In November 2022, crypto exchange FTX suffered a major liquidity crisis , and filed for Chapter 11 . In July 2022, two major crypto trading platforms, Voyager and Celsius, declared bankruptcy . But what does that mean for investors? Key Takeaways Cryptocurrency users have limited recourse if the cryptocurrency company that they use goes bankrupt. After the bankruptcies of crypto firms Celsius and Voyager, investors have a reason for concern. Cryptocurrency holdings are not protected by government-backed insurance. Bankruptcies Leave Crypto Investors Unable to Withdraw The bankruptcies of Voyager and Celsius highlight the unique risks that cryptocurrency holders and investors face when trusting crypto firms with their funds. These two incidents alone could lead to well over $1 billion in investor losses. … [Read more...] about What Happens When A Crypto Exchange Goes Bankrupt?
Image for representation The owner of an American furniture company has reportedly ‘disappeared’ after firing 2,700 employees over text and email last week. All employees of United Furniture Industries were told they were being let go with immediate effect just days before Thanksgiving. Now, the New York Post has reported that owner David Belford has gone incommunicado after sparring with the company’s board and bankers over whether to file for bankruptcy. “No one has heard from the owner. He’s not returning anyone’s phone calls. It’s such a horrible situation,” one source with knowledge of the situation told The Post. Some former employees of United Furniture Industries say Ohio-based Belford has flown to Paris after axing thousands of workers. Also read: Company fired its employees while they were sleeping Philip Hearn, an attorney representing some 600 laid off employees, said that the company had decided to file for bankruptcy protection on November 20. … [Read more...] about Businessman ‘disappears’ after firing 2,700 employees over text
Share to Twitter Share to Linkedin The FTX bankruptcy on November 11 shocked the crypto market wiping out FTX's $34 billion valuation overnight with investors like Sequoia and Softbank writing their investments in FTX down to zero. Market contagion is spreading with BlockFi the latest casualty filing for bankruptcy earlier this week and Coinbase’s debt trading at near distressed levels. FTX was reported to have been $8 billion short of fulfilling customer requests for their money just 2 days before the bankruptcy and estimates vary about how much customer money is locked up in the bankruptcy. There is an estimated $10 billion shortfall of funds with FTX owing $3 billion to creditors. Customers, who are unsecured creditors, are at the back of the line and are unlikely to see their money. John Ray , the specialist that led Enron’s wind down was appointed to run the FTX bankruptcy said he had never seen “such a complete failure of corporate controls and … [Read more...] about Polyamory, Denial, And Recriminations: Rebuilding Trust In Crypto After FTX
Share to Twitter Share to Linkedin Want to start a conversation with a small business owner? Then ask them about taxes. It’s an issue that almost always lurks in the back of the mind of an owner, sole proprietor or contractor. Despite the concern that nearly every small business owner or sole proprietor has with taxes, however, rarely does the issue arise when asked generally about problems small businesses face. For instance, the National Federation of Independent Business (NFIB) asked companies that saw a decline in profits what was the reason in its monthly optimism index for September. The highest cause was the rise of cost for materials at 42%, while 21% blamed weaker sales. Only 3% stated higher taxes or regulatory costs as the reason. A similar result came from the most recent small business index released by the US Chamber of Commerce and MetLife MET . The survey conducted between July and August of this year found that inflation was … [Read more...] about Consider These 4 End Of Year Small Business Tax Moves
Share to Twitter Share to Linkedin Let’s be honest: after the year we’ve just put in, we’re all exhausted. But we can’t let our guard down. Because at times like these, it’s easy to let alarmist headlines skew our buy and sell decisions. Worse, the clamor, and almost always incorrect market predictions that dominate the news these days, can lure you away from the reliable dividend payers you need to fund your retirement. I hate to see that happen to investors—especially when they could easily use high-yield closed-end funds (CEFs) to retire on dividends alone. I’ve got three “low-drama” CEFs that can get you there, thanks to their outsized 8.1% average yield. All three also boast strong dividend growth and price upside, too. More on this high-yield trio shortly. There’s Only One Retirement “Rule” You Need to Know It seems that when most investors do pay attention to retirement planning, they obsess over a random sum advisors or pundits say … [Read more...] about How To Achieve The Mythical “Dividends Only” Retirement
Share to Twitter Share to Linkedin Since the news of the entire Juventus board resigning broke earlier this week, more and more details have emerged about what led to that decision and what the future may hold for Italy’s biggest club. As explained in this previous column , the Italian government authority responsible for regulating the Italian stock market – known as CONSOB – are investigating claims that members of the Juventus first team squad were paid off the books during the height of the Covid-19 pandemic. Indeed, according to La Gazzetta dello Sport , 23 players who had signed agreements to reduce their salaries in order to help the club through an extremely difficult period were allegedly actually given that money “in the black.” That would mean that the players and Juventus avoided paying tax on those sums, while the club would have also falsified their books to make it appear as if they balanced. With Juve being a publicly traded … [Read more...] about Juventus Investigation Continues: What Did We Learn This Week?
Share to Twitter Share to Linkedin A key subtext to the debate over whether to restore the expanded 2021 version of the Child Tax Credit (CTC) is this: Does the credit help reduce child poverty by giving low-income families much needed money, or does it increase poverty by discouraging work? The debate is especially intense around the 2021 provision that made the credit fully refundable. That is, should parents get the full credit only if they work and earn a certain amount of income, or not? The 2021 CTC provided up to $3,600 for each child under age 6 and up to $3,000 for children ages 6 through 17. And even very low-income families received the full credit, thanks to full refundability. The current version of the credit, as with previous versions, is only partially refundable so non-working parents receive no credit and many working parents receive only limited credits because they don’t earn enough to access the full credit. That means almost 19 … [Read more...] about Does The Child Tax Credit Reduce Child Poverty Or Discourage Work?