President Joe Biden made a long-awaited announcement in August that individuals earning less than $125,000 a year would have $10,000 in federal student loan repayments forgiven, but that would rise to $20,000 if they received Pell Grants in college. What’s more, he said people with undergraduate loans would also have a payment cap of 5% of their monthly income.
Still, Biden’s announcement was far from a blanket cancellation. Roughly 20 million people, mostly lower-income borrowers, will have their student debt eliminated as a result of the White House’s announcement on Aug. 24. That should make a difference: The Federal Reserve says the average student-loan debt per borrower is $39,351, while the median student-loan debt is $19,281.
Jackie Fontana, a CFP and portfolio manager at FBB Capital Partners, suggests investing in U.S. treasuries, or a well-diversified equity ETF. “If they are able to stay in the market for at least 8-10 years, go with an equity ETF. If you may need access to funds sooner than that, consider purchasing U.S. treasuries, which is currently yielding at nearly 3%.”
There is reason to be concerned about credit-card debt. Americans loaded an extra $46 billion on their credit cards during the second quarter and their balances saw the sharpest increase in more than 20 years, according to data released in August by the Federal Reserve Bank of New York. Credit card debts grew 5.5% from the first to second quarter and 13% year-over- year.
Speed up the road to home ownership A recent survey by Rocket Mortgages said that nearly 70% of millennial student-loan borrowers who intended to buy their first home roughly within the next decade said Biden’s student-loan forgiveness could help shorten their purchase timeline by 1 to 3 years. The rate of home price growth is slowing, but they’re coming off a peak in April.
APE FTDs WERE COVERED WITH MORE FTDs! CORRUPTION! NakedShorts FailuretoDeliver FINRAviolations DarkPoolManipulation BrokenSystem RiggedMarkets NoEnforcement
YOLO on a meme stock with your newly found free money. You earned it!
Download Robinhood?
If there basket weaving degree wasn’t making them before why would it now!
But now I’ll have less to put in my retirement because of the extra taxes I’ll pay for this .