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☆ A growing number of colleges are rolling out 'no-loan' policies. ‘They are giving them out like candy,’ Yale professor says
▼ + stars: | 2024-02-28 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

Roughly two dozen schools have introduced "no-loan" policies, which means they are eliminating student loans altogether from their financial aid packages. "They are giving them out like candy now," said Menaka Hampole, an assistant professor of finance at Yale School of Management, of the growing number of no-loan policies. "Post-Covid more schools are rolling out no-loan policies mostly on the back of Princeton, which had the money in its endowment to do something," Hampole said. Even if a school has a no-loan policy, that also does not prevent a student or family from borrowing money to help cover their contribution. "No loan doesn't mean free," said Robert Franek, The Princeton Review's editor in chief and author of "The Best 389 Colleges."

Persons: Menaka Hampole, Hampole, Colin Hatton, Hatton, Robert Franek, Nicole Hurd, Hurd, Biden, Terra Gallo, Gallo, Colby, Jackie Hardwick, Hardwick, Randi Maloney, Franek Organizations: Yale School of Management, Princeton, Nationwide, Lafayette College, Finance, Colby College, Colby, The Princeton Locations: Easton , Pennsylvania, Lafayette, Waterville , Maine, Jacksonville , Florida

☆ 401(k) millionaire ranks grew 11.5% in 2023. They are 'poster children for staying the course,’ expert says
▼ + stars: | 2024-02-27 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

In this article FIS Follow your favorite stocks CREATE FREE ACCOUNTwatch nowIn a year that defied most economists' expectations, retirement savers reaped the benefits. The average 401(k) balance ended 2023 up 14% from a year earlier to $118,600, Fidelity found. "This past year ended on a high note for retirement savers," said Sharon Brovelli, president of workplace investing at Fidelity Investments. Overall, more than one third of retirement savers increased their retirement savings contributions, Fidelity found. The average 401(k) contribution rate, including employer and employee contributions, now stands at 13.9%, just below Fidelity's suggested savings rate of 15%.

Persons: Sharon Brovelli, Mike Shamrell, Shamrell, Fidelity Organizations: Fidelity Investments, Fidelity, Nasdaq, Dow Jones

☆ Here are some strategies to maximize your financial aid for college
▼ + stars: | 2024-02-22 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Apply for financial aidIn ordinary years, high school graduates miss out on billions in federal grants because they don't apply for financial aid. Because this year's award letters are likely to look a lot different, that also opens the door for families to ask for more college aid. In that case, you may be able to appeal to the college financial aid office, according to Menaka Hampole, assistant professor of finance at the Yale School of Management. Alternatively, if the financial aid packages from other, comparable schools were better, that is also worth bringing to the school's attention in an appeal. "It's very important for students and families to know that financial aid offices tend to be very approachable," Greenberg said.

Persons: haven't, Rick Castellano, Sallie Mae, Greenberg, Menaka Hampole Organizations: U.S . Department of Education, National College, College, Network, Yale School of Management

☆ New FAFSA 'loophole' lets grandparents help pay for college without affecting financial aid eligibility
▼ + stars: | 2024-02-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Under the old FAFSA rules, assets held in grandparent-owned 529 college savings plans were not reported on the form, but distributions from those accounts counted as untaxed student income. Still, the idea of a loophole is not entirely new, according to Kalman Chany, a financial aid consultant and author of The Princeton Review's "Paying for College." "There were always planning strategies that families could use when it came to third-party 529 plans," Chany said. "Even with this change, you still need to look before you leap if grandparents are going to help pay for college," Chany said. The other advantages of 529 plans

Persons: Mark Kantrowitz, Michael Green, Green, Kalman Chany, Chany Organizations: IRS, slims, Apollon Wealth Management, Princeton Locations: Charleston , North Carolina

☆ You can put a price tag on the value of a personal finance education: $100,000
▼ + stars: | 2024-02-17 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Taking a financial education class in high school does pay off. In fact, there is a lifetime benefit of roughly $100,000 per student from completing a one-semester course in personal finance, according to a recent report by consulting firm Tyton Partners and Next Gen Personal Finance, a nonprofit focused on providing financial education to middle and high school students. Much of that financial value comes from learning how to avoid high-interest credit card debt and leveraging better credit scores to secure preferential borrowing rates for key expenses, such as insurance, auto loans and home mortgages, according to Tim Ranzetta, co-founder and CEO of Next Gen. "Students bring these lessons home," Ranzetta said. "When you take that $100,000 in savings and multiply it across families and communities, it's an incredible economic engine."

Persons: Tim Ranzetta, Ranzetta, isn't, Kerri Herrild Organizations: Tyton Partners, Finance, Biden, De Pere High School Locations: Wisconsin

☆ Amid the many problems with the new FAFSA, 'every student' should appeal for more financial aid, one expert says
▼ + stars: | 2024-02-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Above all else, the new Free Application for Federal Student Aid was designed to improve college access. As of the last tally, nearly 4 million students have submitted the 2024-25 FAFSA form so far. That’s a fraction of the 17 million students who use the FAFSA form in ordinary years, according to the U.S. Department of Education. For most students and their families, the amount of financial aid offered and the breakdown between grants, scholarships, work-study opportunities and student loans are key to covering the tab. “Every student should anticipate doing an appeal this year,” said Bethany Hubert, a financial aid specialist with Going Merry by Earnest.

Persons: ”, Bethany Hubert, Earnest Organizations: Federal Student, U.S . Department of Education, Finance, Biden, College Board

☆ Transferring from community college to a four-year school isn't often successful — it's 'terribly unfortunate,' expert says
▼ + stars: | 2024-02-13 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Going to community college and then transferring to a four-year school is often considered one of the best ways to get a degree for significantly less money. More students are choosing community college at the outset. Enrollment last fall at community colleges rose 2.6%, far more than any other institution type, according to the National Student Clearinghouse's latest research. However, nationwide, only about one third of students who start at community colleges ultimately transfer to four-year schools, and fewer than half of those transfer students earn a bachelor's degree within six years. That means just 16% of all community college students attain a bachelor's degree, according to recent reports by the Community College Research Center at Columbia University, the Aspen Institute College Excellence Program and the National Student Clearinghouse Research Center.

Persons: Josh Wyner, Tatiana Velasco, Rodriguez Organizations: National, Community College Research Center, Columbia University, Aspen Institute College Excellence, Student Clearinghouse Research, Finance, Biden, Aspen Institute College

☆ Americans have $1.13 trillion in credit card debt. Here are some expert tips to help pay yours off
▼ + stars: | 2024-02-12 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Collectively, Americans now owe $1.13 trillion on their cards, and the average balance per consumer is up to $6,360, both historic highs. More from Personal Finance:Average credit card balances jump 10% to a record $6,360Credit card debt hits a 'staggering' $1.13 trillionAmericans can't pay an unexpected $1,000 expense Already, credit cards are one of the most expensive ways to borrow money. The average credit card charges a record high 20.74%, according to Bankrate. Try a 0% balance transfer credit card "My favorite tip is to sign up for a 0% balance transfer credit card," said Ted Rossman, senior industry analyst at Bankrate. Those offers are "just about the best tool you have against credit card debt," added Matt Schulz, chief credit analyst at LendingTree.

Persons: Achilles, Tomas Philipson, Philipson, Ted Rossman, Matt Schulz Organizations: University of Chicago, White House Council, Economic Advisers, Finance

☆ Do you have a joint account? Here’s what that says about your relationship
▼ + stars: | 2024-02-09 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Of those who have at least a joint account, only 12% said financial issues caused problems with their partner, compared to 15% of those who don't have a shared account. Further, 58% of those who share at least one bank account said they stayed together after a financial argument, compared to only 47% of those who don't have a shared account. "If you want your marriage and relationship to survive, at least get a joint account," said Stacy Francis, a certified financial planner and president and CEO of Francis Financial in New York. While most experts recommend some variation of having "yours, mine and ours," completely combining finances is steadily becoming less common. According to a recent report by Bankrate, 39% of couples who are married or living together completely combine their finances, while 38% have a mix of joint and separate accounts and 24% keep finances completely separate.

Persons: Stacy Francis, Bankrate Organizations: LendingTree, Francis Financial, Finance Locations: New York

☆ Average credit card balances jump 10% to a record $6,360 as more consumers fall behind on payments
▼ + stars: | 2024-02-08 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Americans now owe $1.13 trillion on their credit cards, the Federal Reserve Bank of New York reported Tuesday. In that case, credit cards are one of the most expensive ways to borrow money. The average credit card charges a record-high 20.74%, according to Bankrate. Millennials increasingly lean on creditStill, consumers often turn to credit cards, in part because they are more accessible than other types of loans. How to tackle credit card debt

Persons: Ted Rossman, Cardholders, Wise, that's Organizations: Federal Reserve Bank of New Locations: Federal Reserve Bank of New York, TransUnion

☆ 'Loud budgeting' is having a moment — here's how to take advantage of it
▼ + stars: | 2024-02-07 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

TikTok's latest financial trend, "loud budgeting," can be as simple as saying "Hey, I don't want to spend money right now," Lukas Battle explained on CNBC's "Power Lunch." Battle, a comedian and writer who first coined the term loud budgeting, said his idea has been largely met with relief, which is why it has proved popular. Alternatively, "loud budgeting'" is centered around the everyday person, or the "average Joe," according to Battle's viral TikTok video. "It's not 'I don't have enough,' it's 'I don't want to spend,'" Battle added. In that way, loud budgeting is "it's almost more chic, more stylish, more of a flex."

Persons: Lukas, Allison Bornstein, TikTok, Gwyneth Paltrow's, Prada, Joe Organizations: Finance

☆ Credit card debt hits a 'staggering' $1.13 trillion. Here's why so many Americans are under pressure
▼ + stars: | 2024-02-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Credit card balances increased by $50 billion, or roughly 5%, in the fourth quarter of 2023, the New York Fed found. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. Why credit card debt keeps rising"Even though $1 trillion in credit card debt is a staggering number to wrap your brain around, the unfortunate truth is that it is only going to keep climbing from here," said Matt Schulz, chief credit analyst at LendingTree. Despite the steep cost, consumers often turn to credit cards, in part because they are more accessible than other types of loans, Schulz said. What to do if you're in credit card debt

Persons: millennials, Wilbert van der, Matt Schulz, Schulz Organizations: Federal Reserve Bank of New, New York Fed Locations: Federal Reserve Bank of New York

☆ Amid rocky FAFSA rollout, Education Department looks to smooth the so-far bumpy debut — 'too little, too late,' expert says
▼ + stars: | 2024-02-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

The U.S. Department of Education announced Monday it is introducing a "FAFSA College Support Strategy" with additional personnel, funding, resources and technology to help colleges process the new Free Application for Federal Student Aid forms after the rollout was repeatedly complicated by a number of setbacks. "We are determined to get this right," U.S. Secretary of Education Miguel Cardona said in a statement. However, the consensus among college financial aid administrators seems to be that it is "too little, too late," said higher education expert Mark Kantrowitz. It will also offer a "concierge service" to answer questions from colleges about the new form and help schools drive FAFSA completion so students can get their aid packages in time. Last week, the Department of Education said colleges won't receive FAFSA applicant information until early March, instead of late January as initially estimated, potentially delaying financial aid award letters until April or later.

Persons: Education Miguel Cardona, Mark Kantrowitz, Biden Organizations: U.S . Department of Education, Federal, Education, Finance, Department of Education

☆ How Supreme Court affirmative action decision is impacting college applicants. 'The barriers are already so high,' one legal expert says
▼ + stars: | 2024-02-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

The percentage of first-year applicants identifying as Black or Latino jumped 12% and 13%, respectively, year over year, outpacing other groups. At the same time, colleges are seeing an increase in first-generation applicants and international students, the Common App found. The financial aid factorFor many families, the price tag is the most significant sticking point when it comes to college access. Black households also tend to borrow more than households to finance a higher education. And because of historic racial and economic inequities, Black student loan borrowers struggle to repay their debt more than their white peers.

Persons: it's, Cara McClellan, Biden, Bryan Cook, Cook, Elise Colin, Colin, McClellan, Wells Organizations: Racial, Civil Justice Clinic, University of Pennsylvania Carey Law School, Finance, Urban Institute, Urban, University of California, University of Michigan, Federal Student Aid Locations: Wells Fargo

☆ The 'mob wife' trend takes over after quiet luxury — and it's easier on the wallet
▼ + stars: | 2024-02-02 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

James Gandolfini as Tony Soprano and Edie Falco as Carmela Soprano seek counseling in HBO's hit television series, "The Sopranos" (Year 3). HBO | Hulton Archive | Getty ImagesQuiet luxury is out and the 'mob wife' era is in, according to Kayla Trivieri's viral TikTok video. Think: Carmela Soprano in HBO's "Sopranos," cheetah print and lots of eye liner. How we got to the 'mob wife' eraHow to achieve the 'mob wife' lookAlthough the character Carmela Soprano wasn't necessarily frugal, appropriating her style costs a lot less than the quiet luxury looks that emerged after Gwyneth Paltrow's ski accident trial last March. watch nowToday's 'mob wife' aesthetic is less about cashmere sweaters and camel-hued coats and more about bold accessories such as gold hoop earrings, a leopard print jacket or vintage fur.

Persons: James Gandolfini, Tony Soprano, Edie Falco, Carmela Soprano, Kayla Trivieri's, HBO's, Thomaï Serdari, University's, Carmela Soprano wasn't, Gwyneth Paltrow's, Paltrow, Celine, Prada, Carolyn McClanahan Organizations: HBO, University's Stern School of Business, Planning Partners Locations: New, thrifting, Jacksonville , Florida

☆ FAFSA delays likely to slow college decisions. 'It's a real mess,' expert says. Here's what to do if your financial aid letter is late
▼ + stars: | 2024-02-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

For most students and their families, which college they will choose hinges on the amount of financial aid offered and the breakdown between grants, scholarships, work-study opportunities and student loans. This year, schools are now waiting on that FAFSA information to begin building financial aid packages and to give students and families enough time to weigh their options. "The delay in sending FAFSA data to colleges will cause college financial aid offers to be delayed until at least April, maybe even May." "Making an offer of admission without offering a full financial aid offer really isn't useful for most families," said Adam Miller, vice president for admission and financial aid at Whitman College in Walla Walla, Washington. To do this, Whitman and other colleges would need to leverage the information families provided in their completed CSS Profile.

Persons: Mark, Mark Kantrowitz, Adam Miller, Whitman, Miller, Rick Castellano, Sallie Mae, Castellano Organizations: National College, Whitman College, College Board, Decision Locations: Walla Walla , Washington

☆ Federal Reserve holds interest rates steady, sets the stage for cuts. What that means for your money
▼ + stars: | 2024-01-31 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Greg McBride chief financial analyst at Bankrate"Below the surface, 60% of households are living paycheck to paycheck," McBride said. Now, with rate cuts on the horizon, consumers will see some of their borrowing costs come down as well, although deposit rates will also follow suit. From credit cards and mortgage rates to auto loans and savings accounts, here's a look at where those rates could go in the year ahead. Going forward, annual percentage rates will start to come down when the Fed cuts rates but even then, they will only ease off extremely high levels. Mortgage ratesDue to higher mortgage rates, 2023 was the least affordable homebuying year in at least 11 years, according to a report from real estate company Redfin.

Persons: Greg McBride, McBride, Doug Duncan, Fannie Mae, It's, Jessica Caldwell, Edmunds Organizations: Treasury, Fed Locations: Edmunds

☆ FAFSA inflation fix may delay financial aid letters, Education Department says
▼ + stars: | 2024-01-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

The U.S. Department of Education says it recently updated a key part of the new Free Application for Federal Student Aid formula, but, as a result, colleges won't receive FAFSA applicant information until early March, instead of late January as initially estimated. "These continued delays, communicated at the last minute, threaten to harm the very students and families that federal student aid is intended to help," said Justin Draeger, president of the National Association of Student Financial Aid Administrators. At launch, the new FAFSA relied on old consumer price index figures from 2020, before the recent runup in inflation. Just last week, the Department of Education said it planned to update this part of the new FAFSA formula, which will mean an additional $1.8 billion in aid for college-bound students this year. That update has now been completed, the Department of Education said Tuesday, and, as a result, 1.3 million students will see larger Pell Grants, a type of aid available to low-income families.

Persons: Justin Draeger, TikTok Biden Organizations: U.S . Department of Education, Federal, Aid, Department, National Association of Student Financial, Finance, Department of Education Locations: Pell

☆ From loud budgeting to girl math, here’s what you should know before taking financial advice from TikTok
▼ + stars: | 2024-01-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Between girl math, loud budgeting and cash stuffing, the trendiest financial advice is increasingly born on TikTok. That's helped financial TikTok, also known as FinTok, take off. Now it's one of the most popular sources for financial information, tips and advice, particularly among Generation Z. The hashtag #FinTok, representing just the financial TikTok community, has more than 4.7 billion views on the platform. Finfluencers appeal to Gen Z investors because they produce educational and engaging content that is instantly accessible and, even better, free, the report found.

Persons: That's, Gen Z, Gen Zers, Young, Zers, Gen, Finfluencers, Rhodri Preece Organizations: Finance, YouTube, CFA Institute Locations: TikTok

☆ Forget a soft landing, there may be ‘no landing,’ economist says. Here's what that would mean for you
▼ + stars: | 2024-01-29 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

"In many ways, we already have a soft landing," said Columbia Business School economics professor Brett House. What a 'no landing' scenario means"No landing means above-trend growth, and also above-trend inflation," Grindal said, describing an economy that is "overheating." As of the latest reading, the current annual inflation rate is 3.4%, still above the 2% target that the central bank considers a healthy annual rate. A "no landing" scenario also means more strain on household budgets and those with variable-rate debt, such as credit cards. "That looks like the soft landing has been more or less achieved and is likely to be sustained," House said.

Persons: Brett House, Alejandra Grindal, Ned Davis, Grindal Organizations: Federal, Columbia Business School, Gross, Ned, Ned Davis Research, Finance

☆ In many ways, Gen Zers are better off than their parents were 30 years ago, but fewer are financially independent — here's why
▼ + stars: | 2024-01-27 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

However, Gen Z adults are also less likely to own a home, be married or have children. Pew surveyed about 1,500 adults between the ages of 18 and 34 and more than 3,000 parents of adult children. Gen Z is generally defined as those born between 1996 and 2012, including a cohort of teens and tweens. Now, 25% of young adults live in a multigenerational household, up from just 9% five decades ago. Meanwhile, as living with mom and dad has become more common for young adults — it's also more socially acceptable, according to Parker.

Persons: Gen, Pew, Zers, Kim Parker, they've, Nicole Smith, that's, Janet Yellen, — it's, Parker Organizations: Pew Research Center . Pew, Georgetown University Center, Education, Workforce, CNBC, Treasury, Pew Research Center

☆ College enrollment picks up for the first time in over a decade — but student loan debt is still a major sticking point
▼ + stars: | 2024-01-24 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

For the first time in over a decade, more students are choosing to go to college. Undergraduate enrollment rose 1.2% in the fall of 2023 compared with one year earlier — a gain of roughly 176,000 students, according to the National Student Clearinghouse's latest research. "The number of students in college has finally turned the corner after years of decline," said Doug Shapiro, executive director of the National Student Clearinghouse Research Center. "Students have been increasingly opting for shorter term degrees and more vocational programs and vocational certificates," he added — at the expense of a four-year degree. "We have more families asking about pre-professional programs," Greenberg said.

Persons: Doug Shapiro, Z, Biden, Shapiro, Eric Greenberg, Greenberg Organizations: National, Student Clearinghouse Research, Finance, Greenberg Educational Group Locations: New York

☆ Education Department's FAFSA inflation fix will free up $1.8 billion more in aid for students
▼ + stars: | 2024-01-24 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowThe U.S. Department of Education says it plans to update a key part of the new Free Application for Federal Student Aid formula, which will result in $1.8 billion more in aid for college-bound students this year. The announcement comes weeks after the simplified FAFSA soft launched Dec. 30 after a monthslong delay. As a result, more middle- and higher-income students could qualify for a Pell Grant, a type of aid available to low-income families, added higher education expert Mark Kantrowitz. Currently, the maximum Pell Grant award is $7,395. "Students on the edge of Pell Grant eligibility could be most affected," Kantrowitz said.

Persons: Justin Draeger, Pell Grant, Mark Kantrowitz, Kantrowitz Organizations: U.S . Department of Education, Federal, Aid, National Association of Student Financial

☆ Employers and workers are at odds over work-life balance — here's who is winning
▼ + stars: | 2024-01-23 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

At the end of last year, Wayfair CEO Niraj Shah had a clear message for workers heading into 2024: "Winning takes hard work." "There is not a lot of history of laziness being rewarded with success," Shah wrote. "In his note, Niraj was reinforcing some of the values that have contributed to Wayfair's success, including questioning the status quo, being cost-efficient and working hard together to drive results." However, employees now have other priorities, new research shows, and more time at the office is not one of them. Employees are more likely to consider work-life balance, flexible hours and mental health support as more important, the report found.

Persons: Niraj Shah, Shah, Niraj Organizations: Business, Finance

☆ The world will have its first trillionaire within a decade, but poverty won't be eradicated for another 229 years, report finds
▼ + stars: | 2024-01-22 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

In just three years, the world has witnessed a "supercharged surge in extreme wealth," new data shows. In the U.S. alone, billionaires are 46% richer than they were in 2020, while the three wealthiest men — Elon Musk, Jeff Bezos and Larry Ellison — have increased their net worth by 84%, a recent Oxfam report on global inequality found. If current trends continue, the world will have its first trillionaire within a decade, but poverty won't be eradicated for another 229 years. "We expect to see continued concentration of extreme wealth at the very top," added Rebecca Riddell, policy lead economic and racial justice at Oxfam. There are, however, signs of progress, noted Steven Hamilton, assistant professor of economics at George Washington University.

Persons: — Elon Musk, Jeff Bezos, Larry Ellison —, Amitabh Behar, Rebecca Riddell, Steven Hamilton Organizations: Oxfam, America, U.S . Census, Interim, Finance, House Republicans, George Washington University Locations: U.S

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