personal loan – Inzerce Pujcek http://inzercepujcek.net/ Tue, 22 Nov 2022 19:07:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://inzercepujcek.net/wp-content/uploads/2021/06/icon-87-150x150.png personal loan – Inzerce Pujcek http://inzercepujcek.net/ 32 32 Applications for student loan forgiveness are being approved. And now? https://inzercepujcek.net/applications-for-student-loan-forgiveness-are-being-approved-and-now/ Tue, 22 Nov 2022 17:59:00 +0000 https://inzercepujcek.net/applications-for-student-loan-forgiveness-are-being-approved-and-now/ Lauren Davidson was hoping that $10,000 would reduce her student loan balance. The public school music teacher’s debt has soared to $60,000 since graduating from Grand Valley State University in 2014. But Davidson, like millions of other student borrowers, is now waiting to see if a federal pardon plan will survive legal challenges. “I really […]]]>

Lauren Davidson was hoping that $10,000 would reduce her student loan balance.

The public school music teacher’s debt has soared to $60,000 since graduating from Grand Valley State University in 2014. But Davidson, like millions of other student borrowers, is now waiting to see if a federal pardon plan will survive legal challenges.

“I really hope that now that it has been challenged, it has been decided that it can be put into motion, because it would help so many people to do so many things and relieve this heavy burden,” he said. she stated.

Related: Michigan borrowers ride ‘with the punches’ in hopes of student debt relief

President Joe Biden announced a plan in August to waive $10,000 per federal borrower and $20,000 for Pell Grant recipients earning less than $125,000 individually or $250,000 as a household. In Michigan, that means 1.3 million people could get debt relief, including 849,300 Pell Grant recipients who are eligible for up to $20,000.

Over the weekend, the US Department of Education began notifying eligible borrowers.

But two recent court rulings have put the plan in jeopardy, meaning it could be months before 26 million claimants see debt forgiveness – if at all.

“For those who have already applied, there’s not much they can do but wait for the court battle to be over,” said Jonathan Hanson of the University of Michigan’s Ford School of Public Policy.

What’s going on?

Debt cancellation is suspended for the time being.

A federal judge in Texas first blocked the plan on November 10 calling it unconstitutional. Then the 8th U.S. Circuit Court of Appeals in St. Louis dealt another blow, issuing an injunction to stop the U.S. Department of Education from taking any further claims.

“Basically the Court of Appeal has halted the program for the time being until the case can be heard. So it could take several months potentially where we just have to wait for that to happen,” Hanson said.

The Biden administration plans to fight those decisions.

I have already applied. And after?

The US Department of Education has begun notifying eligible borrowers that it is sending approvals to loan providers and “you don’t need to take any further action.” Education Secretary Miguel Cardona went on to say that the lawsuits had “blocked our ability to repay your debt,” but the department believes the legal challenges are without merit.

“Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court. We will update you as there are new developments,” he said.

Here’s a state-by-state look at how many people could get debt forgiveness:

(Can’t see the map? Click here.)

Can I still apply?

No.

An injunction granted by the United States Court of Appeals has prevented the federal government from accepting any new claims at this time.

The Federal Student Aid website now says “Student Debt Relief is blocked.” Before that, applications were open until December 31, 2023.

Is the plan legal?

It depends who you ask.

The Biden administration relied on a 2003 law to roll out the program.

The HEROES Act grants federal education officials the power to eliminate debt “classwide in response to the COVID-19 pandemic,” the US Department of Justice wrote in august review. It’s what former President Donald Trump and the Biden administrations used to suspend student loan payments for nearly three years.

“The administration argues that the COVID-19 pandemic has created a national emergency that has put many people at financial risk,” Hanson said. “It’s the authority by which they say, ‘Given the national emergency, we have the authority to make this loan forgiveness. “”

But this argument faces several challenges.

Two borrowers – backed by a conservative group – filed a lawsuit in October, alleging they were wronged by the scheme. Plaintiff Myra Brown says she doesn’t qualify because she has business loans and plaintiff Alexander Taylor says he won’t get full forgiveness of his debt because he’s not a beneficiary of the Pell grant.

Also at issue, the plaintiffs say the Biden administration failed to allow public comment, which is required under the Administrative Procedures Act, which governs the process by which federal agencies develop and issue regulations. .

Related: 5 Facts About How Much Student Loan Debt Michiganders Have

In a separate lawsuit, six Republican-led states say the Biden administration overstepped its executive powers. They argue the program will rob them of tax revenue and hurt a Missouri-based loan service provider, Mohela.

Both lawsuits make similar claims.

“There are a variety of different cases that have been filed. But at the heart of it, some of the major cases is that the administration does not have the legal authority to implement such a large loan cancellation program without further authorization from Congress,” said Hanson.

What have the courts said?

US District Court Judge Mark Pittman blocked the program earlier this month.

Pittman, a Trump-appointed Texas judge, argued that “the separation of powers as defined in our Constitution” should be upheld.

“And having interpreted the HEROES Act, the Court finds that it does not provide ‘clear congressional authorization’ for the Secretary’s proposed program,” he wrote in a 26-page opinion on the case. brought by Brown and Taylor.

Four days later, U.S. Court of Appeals judges — two appointed by Trump and another by former President George W. Bush — backed Missouri’s claim that the program would cause financial harm in the state.

“This unforeseen financial downturn will prevent or delay Missouri from funding higher education at its public colleges and universities,” they wrote in a Nov. 14 injunction.

Related: Student loan repayments have been frozen for two years. Here’s how the break helped 6 Michiganders.

The Biden administration responded by taking the issue to the U.S. Supreme Court.

This is the third time judges have been asked to consider the fate of the student debt forgiveness program.

Judge Amy Coney Barrett, head of emergency requests, denied the challengers’ first two requests. This time, the Republican-majority court gave opponents until noon on Wednesday, November 23 to respond to the Biden administration’s request to overturn the injunction.

“The erroneous Eighth Circuit injunction leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations,” wrote US Solicitor General Elizabeth Prelogar in a 40-page article. filing in court.

What’s next for borrowers?

In the meantime, student loan repayments are expected to begin January 1, 2023. 58% of borrowers said they will struggle to afford those payments in a September poll by research and insight firm Morning Consult.

“Just having to budget for that in my expenses and things like that is a little concerning,” Davidson said. “But we will find out.”

Related: 6 Things to Know About the Student Debt Cancellation Plan

Rising tuition fees have pushed student debt relief to the fore in recent years.

A Cato Institute survey, a libertarian think tank, found that 64% of Americans support a $10,000 pardon plan with income caps. And Morning Consult found most voters supported the Biden plan, with it more popular among Democrats than Republicans.

“I think it’s now part of our consciousness in a way that maybe wouldn’t have been possible five years ago,” Hanson said.

But if the Biden plan fails in court, Hanson says it will likely be an uphill battle to get legislation through Congress. Following the midterm elections, the Democrats hold the majority in the US Senate and the Republicans lead the US House.

Learn more about MLive:

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Eurozone yields climb ahead of ECB loan repayments https://inzercepujcek.net/eurozone-yields-climb-ahead-of-ecb-loan-repayments/ Fri, 18 Nov 2022 09:12:30 +0000 https://inzercepujcek.net/eurozone-yields-climb-ahead-of-ecb-loan-repayments/ LONDON, Nov 18 (Reuters) – Euro zone government bond yields rose slightly on Friday but were set for a second consecutive week of declines for the first time since July, ahead of an update on the European Central Bank on repayments of its emergency loans to commercial banks. The eurozone central bank will announce at […]]]>

LONDON, Nov 18 (Reuters) – Euro zone government bond yields rose slightly on Friday but were set for a second consecutive week of declines for the first time since July, ahead of an update on the European Central Bank on repayments of its emergency loans to commercial banks.

The eurozone central bank will announce at 11:05 GMT how much banks plan to repay of the 2.1 trillion euros ($2.170 billion) in multi-year credit they have taken out as part of its operations long-term refinancing schemes (TLTRO).

This repayment is voluntary, but last month the ECB prompted banks to repay by removing a rate subsidy, and analysts expect lenders to repay around half a trillion euros in TLTRO loans to the window this week.

“A higher-than-expected redemption today could negatively impact the front end of peripheral bonds, which have been the main beneficiaries of the carry trade,” said analysts at Jefferies, who expect $600 billion in redemptions.

A carry trade generally involves borrowing in a currency or market where interest rates are low, to invest in a market where they are higher.

The yield on Italian 2-year bonds was 2.75% in early trading, up 5 basis points.

The yield on Italian 10-year bonds rose 5 basis points to 3.99%, although it is heading for a weekly decline of 20 basis points, its second straight after falling 27 basis points a week previously.

Hopes that central banks around the world, and particularly in the United States, are nearing the end of their interest rate hike program have supported government bond prices this month, especially after US inflation figures weaker than expected. The yield on Germany’s 10-year government bonds, the eurozone benchmark, last rose 1 basis point to 2.04%. It is on track for a weekly decline of around 10 basis points, after posting a similar decline the previous week.

It would be the first time that Italian or German 10-year yields have fallen two weeks in a row since July.

With Italian yields falling faster than German ones, the spread between the two countries’ 10-year bond yields narrowed to 186.9 basis points in early trading, around its lowest since July. (Reporting by Alun John; Editing by Simon Cameron-Moore)

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Is a payday advance from a bank better than a personal loan? https://inzercepujcek.net/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Sat, 12 Nov 2022 12:32:34 +0000 https://inzercepujcek.net/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Image source: Getty Images We’ve all come across an unexpected expense from time to time. Key points 60% of Americans couldn’t cover a $400 emergency expense without going into debt. If you need cash fast and your bank offers payday advances, it might be worth looking into. A personal loan has other advantages, however, such […]]]>

Image source: Getty Images

We’ve all come across an unexpected expense from time to time.


Key points

  • 60% of Americans couldn’t cover a $400 emergency expense without going into debt.
  • If you need cash fast and your bank offers payday advances, it might be worth looking into.
  • A personal loan has other advantages, however, such as a higher borrowing limit and a lower interest rate.

Many of us have been there. You had a car accident, and now you have to pay the mechanic to fix it. This unexpected expense will cost you a few hundred dollars, and like 60% of Americans, you are not able to cover it with your savings. Moreover, you only have money left for the bare necessities in your current account, and your next payday is several days away. What should you do?

You have a few options in this situation. Read on to learn more about bank payday advances versus personal loans, and how to decide which is right for you.

What is a salary advance?

A payday advance loan from a bank or box is called a small loan. These are loans of an amount generally between $100 and $1,000, granted by a bank to account holders. The intention is to give consumers an alternative to predatory payday loans (see below) when they are in a financial bind. If your bank offers them, you’ll get the money you need quickly and pay it back from your next paycheck via direct deposit, or over a period of weeks or months. You will have to pay a fee (either a fixed dollar amount or a small percentage of what you borrow) and interest for the service.

You may soon hear more about payday advances; a Bloomberg Law report in early October 2022 noted that federal regulators want banks to be able to offer them, but banks need more guidance from regulatory agencies moving forward. Personal loans, on the other hand, are already reliably available for your emergency borrowing needs.

What is a personal loan?

A Personal loan is a fairly easy way to borrow a lump sum of money. They usually come with lower interest rates than many other quick cash solutions, like credit cards or payday loans (and certainly lower than payday loans). However, if your credit is not in top shape, you may not be eligible for the best personal loan rates available.

Personal loans are generally in the amount of $1,000 to $100,000, and can often be funded fairly quickly after your application is approved. In some cases you can get the money the same day or the next day. Is there another way to borrow money quickly? Yes, but you probably want to stay away.

Try to avoid payday loans

Although it may seem counterintuitive (after all, there’s “payday” in the name), it’s a good idea to avoid payday loans. And depending on where you live, they may be illegal in your area; they have been banned in 13 states and the District of Columbia. Payday loans are small, short-term loans of $500 or less, usually with a very high interest rate.

As of 2022, typical payday loan rates range from 28% to 1,950%. These loans often trick consumers in a cycle of debt from which they cannot easily escape. Can’t repay your loan on your next payday? That’s fine, the lender will turn it into a new payday loan for you! How nice of them. Your best choice is probably a payday loan or a personal loan.

How do you choose?

There are a few things to consider when choosing between a payday advance and a personal loan.

How much money do you need?

A payday advance loan, if you can get one from your bank or credit union, is probably best for borrowing smaller amounts. If your auto repair bill is $350, but the smallest personal loan amount you can take out is $1,000, that’s not ideal. If your surprise expense is larger, you’ll likely get a better interest rate with a personal loan (plus payday advances from your bank may be capped at $500).

How fast do you need it?

If you can wait a few days and have good credit, you may be better off with a personal loan – again, because of interest rates. That said, if your bank offers payday advance loans, they might approve you fairly quickly if you’re an existing customer in good standing. It has already registered you and can access your finances in the form of your bank account(s). Plus, your bank can easily send the money you borrow directly to your account.

How long do you need to pay it back?

This is where a personal loan probably has the advantage. You will have more time to repay a personal loan (months to years) than a payday loan (weeks to months). But again, a lot depends on the amount of money you need to borrow.

Payday advance loans and personal loans have their place, and if you ever get into trouble and need to borrow a relatively small amount of money, both are worth considering. However, it is definitely in your best interest to avoid payday loans.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Plaintiff in Biden student debt lawsuit pardoned for PPP loan https://inzercepujcek.net/plaintiff-in-biden-student-debt-lawsuit-pardoned-for-ppp-loan/ Wed, 09 Nov 2022 23:29:00 +0000 https://inzercepujcek.net/plaintiff-in-biden-student-debt-lawsuit-pardoned-for-ppp-loan/ The applicant in a lawsuit to cancel President Joe Biden’s student debt cancellation program was itself a beneficiary of the debt cancellation, in the form of a Paycheck Protection Program business loan worth more than double the maximum amount covered by Biden’s program. Myra Brown, one of two plaintiffs in the lawsuit in Texas, owns […]]]>

The applicant in a lawsuit to cancel President Joe Biden’s student debt cancellation program was itself a beneficiary of the debt cancellation, in the form of a Paycheck Protection Program business loan worth more than double the maximum amount covered by Biden’s program.

Myra Brown, one of two plaintiffs in the lawsuit in Texas, owns Desert Star Enterprises Inc. Desert Star, which appears to be a sign-making company, took out a loan of $48,000, including $47,996 has been forgiven on April 27, 2022. By comparison, Biden’s student debt forgiveness program offers a maximum of $20,000 in forgiveness if the person seeking relief received a federal Pell grant and $10,000 if not was not a Pell grant. Brown argues in her case that she is harmed by Biden’s debt relief order because she is not eligible for it because her student loans were originally funded by private companies.

Brown’s case is part of a series of right wing trial aimed at ending Biden’s student debt cancellation program. Although many were fired due to lack of status, this one was not. A judge appointed by Donald Trump, Mark T. Pittman of the U.S. District Court for the Northern District of Texas, has indicated he wants to speed up the process.

Student debt relief advocates say the lawsuits are astroturf efforts by right-wing political organizations. “These sham lawsuits are blatantly fabricated by right-wing organizations funded by billionaires whose sole purpose is to play dirty politics,” Debt Collective spokesperson Braxton Brewington told The Intercept. “These plaintiffs aren’t actually harmed by student debt forgiveness, they’re just willing to be political pawns for black money groups that will do anything to deny working people financial breathing room.”

When The Intercept contacted Brown for comment, she texted back a photo of a print that read “we have no comment” and directing any inquiries to the Job Creators Network, a conservative advocacy organization that funds the trial. The Job Creators Network was founded by the CEO of Home Depot and funded by the conservative Mercer Family Foundation.

“The Paycheck Protection Program is not comparable to the Biden bailout,” Elaine Parker, president of the Job Creators Network, told The Intercept. “Congress passed the PPP, making it a legal program; Biden bypassed Congress, making it illegal. The PPP was an emergency measure to help small businesses survive government lockdowns. PPP was always designed to be forgiven if certain parameters were met.

The Intercept also promptly received an email from TJ Winer, who identified himself as an employee of the Job Creators Network Foundation, from an email address with the domain name CRC Advisors, a communications company of crisis. The CRC’s main funder is the Federalist Society, the powerful conservative legal group whose members include the six conservative Supreme Court justices – many of whom the Federalist Society has championed and helped guide their appointments; Pittman, the federal judge handling the case, is himself a vice president and a Founding Member of the Tarrant County Federalist Society.

In 2019, the CRC found itself in hot water over its attempts to clear then-Supreme Court nominee Brett Kavanaugh of Christine Blasey Ford’s sexual misconduct allegations. After working with conservative legal activist Ed Whelan to launch demands for a doppleganger Blasey Ford took for Kavanaugh, Whelan recanted the allegations and apologized for what he called “an appalling and inexcusable error in judgement”.

Proponents of student debt relief have criticized the hypocrisy of business owners who are comfortable with debt relief for their own businesses, but not for students. “Like the Republican members of Congress who took out PPP loans while denouncing student borrowers seeking relief, Myra Brown believes in ‘debt relief for me but not for you,'” Brewington told The intercept. “This hypocrisy only underscores the cynical motives of the plaintiffs and the lack of merit in their case, which should be dismissed.”

In August, Biden took a blow at Georgia Rep. Marjorie Taylor Greene, saying, “I find it absolutely fascinating that some of the people talking about ‘it’s a big spend’ are the same people who got $158,000 in P3s, including the, what’s the name? her, this woman who believes in the – anyhow. The official White House Twitter account later called Greene by name, clarifying that the figure was actually a bit higher: $183,504 in canceled PPP loans.

Brewington also called on Biden to use additional powers to block these types of lawsuits. “Instead of letting student debt relief be reversed by these bad faith actors and Trump-appointed judges, President Biden should use his power of compromise and settlement to cancel student debt, thus cutting the grass under the foot of these bogus lawsuits and keeping his promise,” he said.

Pittman is one of 200 federal judges appointed by Trump, a group that includes nearly as many appeals court judges as Barack Obama appointed in his two terms. Given Pittman’s right-wing associations, proponents of student debt relief fear his conservative leanings could lead to the case being upheld. This summer, Pittman struck down a Texas law banning people under 21 from carrying handguns, citing “foundation-era history and tradition.”

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Unemployment Rates Live Online: Check for State Inflation Relief, SS Payments, Student Loan Forgiveness https://inzercepujcek.net/unemployment-rates-live-online-check-for-state-inflation-relief-ss-payments-student-loan-forgiveness/ Sat, 05 Nov 2022 02:37:36 +0000 https://inzercepujcek.net/unemployment-rates-live-online-check-for-state-inflation-relief-ss-payments-student-loan-forgiveness/ Inflation knows no borders Inflation weighed on household finances in the United States, but Americans are not alone. Rising prices have wreaked havoc on governments around the world and sent central bankers scrambling to stop it. Policymakers have instituted aggressive rate hikes to tighten monetary policy in their jurisdictions in ways not seen in decades. […]]]>

Inflation knows no borders

Inflation weighed on household finances in the United States, but Americans are not alone. Rising prices have wreaked havoc on governments around the world and sent central bankers scrambling to stop it. Policymakers have instituted aggressive rate hikes to tighten monetary policy in their jurisdictions in ways not seen in decades.

The Bank of England just announced a 0.75% hike in interest rates Thursday raising the rate to 3% from 2.25%. It’s the biggest rate hike since 1989 and has warned of “very difficult” outlook for the economy, with the economy registering inflation of 10.1% in September. The economy is already in a recession that could last two years.

The European Central Bank raised rates by the same amount at the end of October to 1.5%, its highest level since 2009. The ECB has not raised rates this aggressively since the start of the euro zone in 1999. Inflation accelerated to 10.7% across the economic bloc in October.

The United States started earlier than its trading partners to fight runaway inflation, starting with a series of rate hikes in March of this year. While starting slowly with a 25 basis point hike, the first in two years, the Fed announced on Wednesday its fourth consecutive increase of 75 basis points.

Inflation in the United States is slowly falling since peaking at 9.1% in June, this still stands at 8.2%. So far, the United States has been able to avoid recession thanks to the economy expanding in the third quarter after two consecutive declines.

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Don’t cry for lenders in student loan fiasco https://inzercepujcek.net/dont-cry-for-lenders-in-student-loan-fiasco/ Wed, 02 Nov 2022 12:17:13 +0000 https://inzercepujcek.net/dont-cry-for-lenders-in-student-loan-fiasco/ Judge Amy Coney Barrett, President Trump’s latest Supreme Court nominee, recently dismissed a motion, without comment, from a conservative group in Wisconsin called the Brown County Taxpayers Association, which asked the court to block the tax plan. Biden administration aimed at canceling student loans. Shortly thereafter, a federal judge in Missouri launched a lawsuit brought […]]]>

Judge Amy Coney Barrett, President Trump’s latest Supreme Court nominee, recently dismissed a motion, without comment, from a conservative group in Wisconsin called the Brown County Taxpayers Association, which asked the court to block the tax plan. Biden administration aimed at canceling student loans.

Shortly thereafter, a federal judge in Missouri launched a lawsuit brought by six Republican states seeking similar relief by telling the states that they had shown no harm that might result and therefore had no standing. to act.

But then a federal appeals court issued a temporary stay on youhe debt relief.

Based on the flurry of lawsuits they’ve filed recently, the party that has spent the last 30 years denigrating litigators often seems to be aiming for full employment of litigators.

Quackers who think “Let’s Go Brandon” is the height of political satire are apparently upset that a lazy English major living in mum’s basement, with purple hair, piercings and a part-time job in a café, will have his student debt paid with “my taxes”.

This is a gross misrepresentation of the student debt situation.

Federal student loans are used by students regardless of field of study. They are also used by trade school students. You know, plumbers, electricians, linemen, carpenters and even computer programmers.

Your hairstylist, dental technician or medical assistant might have used student loans to pay for their training. Many entry-level truck drivers were trained in trade school using a federal student loan.

The ease of obtaining a federal student loan is its biggest selling point. Interest rates are generally lower than private loans, have fixed rates and more flexible repayment terms.

So who else has benefited from student loans?

Lenders – banks and various scammers. The so-called school counselors. And the education and training institutions themselves have done extremely well with federal student loans. It’s hard to imagine a public university able to pay its athletic trainers seven figures without federal money from student loans.

Undoubtedly, the cancellation of loan contracts raises serious moral hazard questions about money lenders and their customers (victims.) Moral hazard is the term used by economists to describe a situation in which people will take too much risk because they believe that in the end they will not have to bear all the consequences. As if they had insurance – or the government to bail them out.

Namely: Lenders have been given a sweet spot in the student loan business, which has encouraged them to make bad loans, knowing they will eventually be repaired.

But these are the kind of questions that should have been asked years agonot when Biden decided to helpeast of one-third of Minnesota’s population with zero student loans.

The ancestor of all moral hazard situations was the 2008 financial crisis and the subsequent bank bailouts. Mortgage lenders and their Wall Street partners acted like drunken pirates in a casino, and there were hardly any consequences – for them anyway.

The moral preening of charlatans is also highly selective: where were they a few years ago when the federal government handed out billions of taxpayer dollars in Paycheck Protection Program (PPP) loans to businesses, organizations at nonprofits and churches? This money was intended to cover salary expenses and, if used as intended, the loan was cancelled. Most loans have been forgiven, many in the six- and seven-figure range. In other words, people – and businesses are people, right? — borrowed taxpayers’ money knowing they would not repay it. It’s a moral hazard for someone to quack.

Financial consultants and banks – many of whom are involved in selling student loans – have taken advantage of the PPP windfall, collecting hefty fees for loan preparation and processing.

Where were the charlatans when we gave the big banks a giant giveaway by exempting credit card companies from state usury laws, those pesky restrictions on the interest rates a lender could legally charge consumers? Minnesota attrition is capped at 8%. The average credit card interest today is over 16%, a rate available to a relative handful of cardholders. Most credit cards charge 20% or more. They are not subject to state laws.

During the Watergate era, the phrase “follow the money” became popular. And that seems applicable here. If you’re more worried about the purple-haired English Literature major seeing $10,000 in student loans forgiven than the industry that can’t lose in the student loan business, follow the money.

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Federal student loan repayments will resume in January: How to prepare https://inzercepujcek.net/federal-student-loan-repayments-will-resume-in-january-how-to-prepare/ Fri, 28 Oct 2022 11:06:33 +0000 https://inzercepujcek.net/federal-student-loan-repayments-will-resume-in-january-how-to-prepare/ In about two months, millions of consumers who have borrowed for federal student loans will have to dig a little deeper into their pockets to cover another bill of $150 to $300 a month or maybe even more, depending on what they must. Where will they find the money? Often people get into financial trouble […]]]>

In about two months, millions of consumers who have borrowed for federal student loans will have to dig a little deeper into their pockets to cover another bill of $150 to $300 a month or maybe even more, depending on what they must.

Where will they find the money?

Often people get into financial trouble because they don’t plan for the unexpected, but chances are many aren’t preparing for what’s to come next year either.

Right now, many consumers should be calculating how they’ll put more money back in 2023 after the payment pause ends on most federal student loans in December. Payments – which have not been demanded for nearly three years – are expected to resume in January.

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GSIS prepares emergency loan for members and retirees who will be hit by Paeng https://inzercepujcek.net/gsis-prepares-emergency-loan-for-members-and-retirees-who-will-be-hit-by-paeng/ Thu, 27 Oct 2022 12:28:40 +0000 https://inzercepujcek.net/gsis-prepares-emergency-loan-for-members-and-retirees-who-will-be-hit-by-paeng/ The state workers’ pension fund, the Government Service Insurance System (GSIS), is preparing an emergency loan program for members and retirees who may be affected by Tropical Storm Paeng. In a statement on Thursday, GSIS President and CEO Wick Veloso said people affected by the weather disruptions could benefit from emergency loans of up to […]]]>

The state workers’ pension fund, the Government Service Insurance System (GSIS), is preparing an emergency loan program for members and retirees who may be affected by Tropical Storm Paeng.

In a statement on Thursday, GSIS President and CEO Wick Veloso said people affected by the weather disruptions could benefit from emergency loans of up to 40,000 pesos.

“As of October 23 this year, GSIS has already released a total of 4.5 billion pesos which has provided financial assistance to nearly 145,000 active and retired GSIS members,” Veloso said.

Veloso said GSIS has allocated an additional 1.5 billion pesos in emergency loans to members and retirees in 15 areas of northern Luzon affected by the recent calamities.

“We hope to alleviate the plight of more than 69,000 GSIS members and retirees working or residing in areas declared northern calamities due to the 7.3 magnitude earthquake in July, Typhoon Karding in September, flash floods and of the dengue epidemic,” he said. .

The head of GSIS said the emergency loan is also open to members and retirees affected by Typhoon Karding in the province of Nueva Ecija and the municipalities of Polillo, Patnanungan, Panukulan, Jomalig, Burdeos and General Nakar in Quezon; La Paz to Tarlac; Macabebe in Pampanga and Dingalan in Aurora.

Qualified to apply are members who are on active duty and not on leave without pay; have at least three months of premiums paid in the last six months; have no pending administrative or criminal case; and have a net salary of at least P5,000 after deducting all required monthly obligations.

Old age and disability pensioners are also qualified to apply if their net monthly net pension after using the loan is at least 25% of their basic monthly pension.

Members with an existing emergency loan balance can borrow up to P40,000 to pay off their previous emergency loan balance and still receive a maximum net amount of P20,000, according to Veloso.

Pensioners and those without an existing emergency loan can apply for a P20,000 loan, he said.

The Paeng trail

According 5 p.m. bulletin from PAGASA on Thursday, Signal No. 1 has been lifted in several areas of the Bicol region and the Visayas as Paeng maintains strength while moving slowly southwest with strong winds prevailing or expected for the next 36 hours.

As of 4 p.m., the center of Paeng was located 510 kilometers east of Borongan town in eastern Samar.

There were maximum sustained winds of 65 km/h near the center and gusts of up to 80 km/h.

PAGASA said Paeng “could pass near Catanduanes on Saturday and a landfall scenario is possible on the east coast of Aurora or Quezon on Sunday.”

“Given the southward shift of the planned trajectory, a possible landing in the eastern part of [the] The Bicol region is not excluded at the moment,” he added.

Paeng is expected to reach the typhoon category on Saturday. —BM, GMA News

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Biden contradicts himself with victory laps on deficit reduction and student loan relief, experts say https://inzercepujcek.net/biden-contradicts-himself-with-victory-laps-on-deficit-reduction-and-student-loan-relief-experts-say/ Fri, 21 Oct 2022 19:51:00 +0000 https://inzercepujcek.net/biden-contradicts-himself-with-victory-laps-on-deficit-reduction-and-student-loan-relief-experts-say/ CNN — President Joe Biden took a victory lap on Friday for the biggest one-year decline in the federal deficit in American history. This is despite the fact that deficits remain historically high and all the Record deficit drop of $1.4 trillion is motivated by the fact that the Covid emergency expenses have expired. Hours […]]]>



CNN

President Joe Biden took a victory lap on Friday for the biggest one-year decline in the federal deficit in American history.

This is despite the fact that deficits remain historically high and all the Record deficit drop of $1.4 trillion is motivated by the fact that the Covid emergency expenses have expired.

Hours later, Biden defended his student debt cancellation program – a program that completely wipes out the modest deficit savings created by the Inflation Reduction Act.

Biden’s dueling tales have puzzled some budget watchers who remain deeply concerned about America’s mountain of debt.

“It seems contradictory to me,” Dan White, senior director of economic research at Moody’s Analytics, told CNN on Friday. “On the net, the administration’s policies increased the deficit, not reduced it.”

Maya MacGuineas — chair of the Committee for a Responsible Federal Budget, a deficit watch group — said that in addition to the Cut Inflation Act, the Biden administration had made the fiscal situation worse, not better.

“The White House knowingly twists the facts to tell a very different story from a fair and accurate story,” MacGuineas told CNN on Friday.

Asked about the optics of encouraging deficit reduction hours before highlighting the student debt program, MacGuineas was baffled.

“It seems a little insulting to the public,” she said, “like you can trick us into claiming fiscal responsibility – which is not warranted – and separate it from this huge executive order that costs hundreds of euros. billions of dollars.”

The White House did not respond to a request for comment on the criticism.

But David Kelly, chief global strategist at JPMorgan Funds, said the Biden administration deserved credit for a strong economy that helped boost tax revenue.

“The economy has fully recovered from the pandemic. And that’s helping to reduce the deficit,” Kelly said.

The Inflation Reduction Act is expected to reduce the federal deficit by $238 billion over 10 years, according to the Congressional Budget Office. However, most of these savings are expected to be realized within the last decade. And these are relatively small savings compared to the $31 trillion in US debt.

“Two hundred and thirty-eight billion dollars is really a drop in the ocean,” White said.

Either way, Biden’s student debt relief, which will help millions of borrowers, will more than offset those savings. The CBO projects that canceling student debt will increase the deficit by $400 billion.

The good news is that deficits are indeed shrinking – and shrinking faster than many imagined possible. This should reduce the risk of a debt crisis or financial market pressure that forces drastic budget cuts.

The Treasury Department said the annual budget deficit plunged to $1.4 trillion in the fiscal year that ended Sept. 30. This is a massive improvement from the record high of $3.1 trillion in fiscal year 2020.

The bad news is that deficits remain very high, exceeding those in any year except during the peak of Covid and during the Great Recession.

And it is important to understand why the deficit has fallen so sharply. It’s not because the government has put massive spending programs like Social Security or Medicare and Medicaid on a sustainable path. That’s because the Covid emergency spending that drove the deficit to new highs expired. Fortunately, airline bailouts, stimulus checks and repayable loans are in the rearview mirror.

“That’s the only reason,” White of Moody’s said. “If the Biden administration is to take credit for anything, it doesn’t make things any worse than they were.”

The Committee for a Responsible Federal Budget estimates that more than 100% of the deficit reduction for fiscal year 2022 is due to the reduction or expiration of Covid relief. The group estimates that Biden’s actions to date have increased deficits by $4.8 trillion through 2031.

“I’d like to give the White House credit. Unfortunately, their record gives you nothing to cheer about,” MacGuineas said.

Biden correctly noted during his speech on Friday that deficits have been rising throughout the tenure of his predecessor, former President Donald Trump, the self-proclaimed debt king.

“The federal deficit grew every year in the Trump administration, every year he was president,” Biden said. “It increased before the pandemic. It has increased during the pandemic.

These increases didn’t just reflect emergency Covid spending by the controversial tax cuts that failed to live up to the hype.

“Under my watch, things have been different,” Biden said. “The deficit has gone down the two years I have been in power.”

MacGuineas agreed Trump had a “terrible” record on the deficit and yet struggled to say Biden had done a better job on the issue.

“Both, in times of economic strength, continued to borrow in a fiscally reckless manner,” MacGuineas said. “None of them have shown an iota of fiscal responsibility — except for eight days after Biden signed the Cut Inflation Act.”

Looking ahead, US policymakers still face a serious challenge in redressing the fiscal situation.

Kelly, the JPMorgan executive, is encouraged that the debt-to-GDP ratio, a closely watched figure, appears to have peaked, at least for now.

“We are in a better place. But we really need to craft policies in a logical way to meet the real needs of the economy, not just in a way to get votes,” Kelly said. “Both sides are guilty of this.”

MacGuineas is more concerned, pointing to the fact that Uncle Sam’s borrowing costs have risen because the Federal Reserve has raised interest rates sharply to fight inflation.

“This is the moment that we’re all worried about,” MacGuineas said.

White also said the United States remains on an unsustainable fiscal path, especially 30 years from now.

“Issues that I thought were my grandchildren’s issues,” he said, “are now going to be my children’s issues.”

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Student Loan Forgiveness: All Your Questions Answered https://inzercepujcek.net/student-loan-forgiveness-all-your-questions-answered/ Tue, 18 Oct 2022 21:31:00 +0000 https://inzercepujcek.net/student-loan-forgiveness-all-your-questions-answered/ Aaround 20 million Americans could see their student loan debt wiped out in just six weeks after the Biden administration launched the official request for debt cancellation on Monday. Launching the app initiates the process of canceling up to $20,000 of student debt per borrower. Borrowers can apply for forgiveness any time before December 31, […]]]>

Aaround 20 million Americans could see their student loan debt wiped out in just six weeks after the Biden administration launched the official request for debt cancellation on Monday.

Launching the app initiates the process of canceling up to $20,000 of student debt per borrower. Borrowers can apply for forgiveness any time before December 31, 2023.

“I stand by my commitment to provide student debt relief as borrowers recover from this economic crisis caused by the once-in-a-lifetime pandemic,” President Joe Biden said Monday.

But as Biden touts the completion of a campaign pledge weeks before the midterm elections, the program is currently facing several legal challenges from conservative groups and Republican-led states.

Here’s what to know about the app.

Who is eligible for loan forgiveness?

Individuals earning less than $125,000 per year, or married couples earning less than $250,000 per year, are eligible for loan forgiveness of up to $10,000. Borrowers who meet the same income requirements and who attended college on Pell Grants, designed to help low-income students, are eligible for a rebate of up to $20,000.

The income requirement is based on a person’s adjusted gross income, which is generally less than their total income. Adjusted gross income can be found on line 11 of IRS Form 1040 in their 2020 or 2021 federal income tax returns.

A September report from the Congressional Budget Office estimated that the plan could cost around $400 billion.

Who is not eligible for loan forgiveness?

About 45 million people owe a collective debt of $1.6 trillion in federal student loans. And more than 40 million borrowers are expected to receive debt relief through this program. Private student loans will not be forgiven by the program.

Borrowers who have taken out Parent PLUS loans, which are federal loans with higher interest rates and fees that parents can use to help their children pay for their education, can receive up to $10,000 in assistance. But they are not eligible for the additional $10,000 if only their child attended college on a Pell grant.

A change to the program in September also excluded about 800,000 borrowers and limited the amount of relief for many more. NPR reported.

The change affects borrowers who took out loans through the Federal Family Education Loan (FFEL) program, which ended in 2010 and had offered federal loans managed by private banks.

The Federal Student Aid website originally said borrowers with private federal student loans could receive debt relief by consolidating those loans into a Federal Direct Loan, a student loan held by the U.S. Department of Education. ‘education. He did not mention a deadline for this consolidation.

But the ministry later changed those guidelines. Borrowers with private federal student loans can no longer get debt relief unless they already applied for loan consolidation before September 29.

It’s frustrating for borrowers like Jennifer Newell Davies, who said she initially felt huge relief when Biden announced the loan forgiveness program. Davies, 36, said she owed just under $10,000 in federal student loans after earning a bachelor’s degree in journalism in 2009. She expected all to be forgiven.

But most of his federal debt consists of FFEL loans, which are now held by private banks and no longer included in Biden’s debt relief package. Davies, who lives in San Diego, started a petition re-include FFEL borrowers in student debt relief.

“We were sold these loans as federal loans,” she says. “I never asked for them to be private. I explicitly avoided private lending whenever possible.

The Department for Education says it is discussing the issue with private lenders and exploring “alternative avenues” to provide relief to those borrowers.

“We’re working on pathways there to support them,” Education Secretary Miguel Cardona said Monday when asked about people with private loans who aren’t eligible for the rebate. “But we are acting as quickly as possible to bring relief to as many people as possible.”

Where are the lawsuits against the program?

Several conservative groups and Republican-led states have filed lawsuits against the program, arguing that Biden lacks the authority to roll out the policy.

A federal judge heard arguments last week Republican-led states seeking an injunction to stop the debt cancellation plan. But he hasn’t made a decision yet.

“Republican members of Congress and Republican governors are trying to do everything they can to deny this aid, even to their own constituents,” Biden said Monday. “Their indignation is false and hypocritical.”

He acknowledged the ongoing lawsuits, but said he did not expect them to stop the debt relief program.

How to apply?

The app is simple and free, and can be found at: https://studentaid.gov/debt-relief/application

It asks borrowers to enter their name, social security number, date of birth, and contact information. Borrowers are not asked to upload documents, but must certify under penalty of perjury that they meet the program eligibility requirements. The Ministry of Education may request proof of income later.

“We will determine your eligibility and contact you if we need more information,” the application page reads. “Your loan manager will let you know when your relief has been processed.”

When should I apply?

The White House encourages borrowers to apply as soon as possible. About eight million borrowers applied over the weekend, after a beta version of the app went live, and another four million borrowers applied after the official launch on Monday, Biden said.

Cardona encouraged borrowers to complete the application by November 15 in order to receive relief before the pandemic-related pause on student loan repayment ends on December 31.

The Biden administration has argued that the president has the power to cancel student debt based on a 2003 law that allows the Department of Education to change student financial aid programs in the event of a “national emergency” – in this case, the COVID-19 pandemic.

But as other pandemic-related programs wind down and after Biden declares “the pandemic is over,” it could undermine the administration’s legal case.

How long will it take to see relief?

Cardoon previously said that borrowers should expect to see relief four to six weeks after completing the application.

In a recent court filing, the Department of Education said it would not cancel any loans until October 23.

Should I continue to repay my loans while waiting to find out if my debt has been forgiven?

When Biden announced the debt cancellation plan in August, he also extended the pandemic-related pause on federal student loan payments “one last time” through Dec. 31.

That means borrowers should expect to start repaying their student loans again in January. But many borrowers could see their debt eliminated by then, if they apply now.

Borrowers are encouraged to apply for forgiveness before November 15, so that they can receive debt relief before payments resume.

Could I be denied loan forgiveness?

Only people who meet the income requirements are eligible for debt cancellation under this program. The application requires borrowers to sign the form and affirm that they earned less than $125,000 individually or less than $250,000 as a married couple in 2020 or 2021.

The Department of Education may ask applicants for proof of income. If borrowers do not provide this proof by March 31, 2024 – or if they do not meet the eligible income requirements – they will not receive debt relief.

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Write to Katie Reilly at Katie.Reilly@time.com.

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