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☆ Don't expect a wave of short sales and foreclosures during this housing downturn — homeowners have too much equity
▼ + stars: | 2022-12-14 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Today's market has tighter lending standards, more assistance programs, and historic levels of homeowner equity compared to downturns of the past. "Historically, normal foreclosure activity means about a single percent of loans are in foreclosure," he told Insider. These initiatives paired with high levels of home equity — roughly $29 trillion as of the second-quarter of the year, according to the Federal Reserve — are likely to prevent an upcoming wave of short sales and foreclosures, Sharga suggests. The spike in foreclosure activity between 2021 and 2022 stems from the expiration of temporary financial safety nets enacted through the CARES Act. But even with this prospect, Sharga suggests that a substantial uptick in foreclosures or short sales is unlikely as many recent homebuyers have positive equity in their homes.

☆ Student loan forgiveness could fall through for 30 million borrowers. If it does, consider these 4 relief options
▼ + stars: | 2022-12-12 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Defer payments (once they resume)The pandemic-era policy suspending federal student loan payments and the accrual of interest is still active. Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. Use the Public Service Loan Forgiveness programThe Biden administration has recently made a number of improvements to the Public Service Loan Forgiveness program, which allows those who work for the government and certain nonprofits to get their debt cleared after a decade of payments. To reach forgiveness, you need to have made 120 qualifying, on-time payments in an income-driven repayment plan or the standard repayment plan. Lenders will likely be overwhelmed when they have to begin collecting loan payments from tens of millions of people again.

[1/2] British Chancellor of the Exchequer Jeremy Hunt talks to a television crew outside the BBC headquarters in London, Britain November 18, 2022. REUTERS/Henry Nicholls/File PhotoLONDON, Dec 7 (Reuters) - Britain's financial watchdog laid out options on Wednesday it said banks should offer customers finding it difficult to make payments on mortgages during the cost of living crisis. Prices slid last month by the most since the global financial crisis, mortgage lender Halifax said on Wednesday. In its draft guidance, the FCA also said firms may offer payment concessions where they agree to accept less than the contractual monthly instalment - resulting in a payment shortfall. "We will consider if there are further steps we can take to help firms to support their borrowers, including at scale."

☆ How to Refinance Your Student Loans
▼ + stars: | 2022-12-05 | by ( ) www.wsj.com time to read: +14 min

You can refinance federal student loans, private student loans or both. “If you have several student loans, refinancing is a good way to help streamline payments,” says Joe DePaulo, co-founder of College Ave Student Loans, an online lender. How to refinance student loans in 5 stepsThe process of refinancing student loans typically only takes two to three weeks from start to finish. Student loan refinancing FAQWhen is a good time to refinance student loans? While both federal and private student loans are eligible for refinancing, only federal student loans qualify for Direct loan consolidation.

☆ Student-loan borrowers defrauded by Corinthian were promised $5.8 billion in relief 'immediately.' 6 months later Biden's Education Department says it'll take 'some time.'
▼ + stars: | 2022-11-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

In June, the Education Department approved a $5.8 billion loan discharge for former Corinthian students. Six months later, borrowers are still waiting, and the department said relief will now take "some time." Education Secretary Miguel Cardona said at the time that the impacted Corinthian borrowers will see their loans "immediately forgiven." This prompted Biden's Education Department to reform the process. Still, aside from the June announcement of relief, none of the Education Department's recent actions are giving Corinthian borrowers any certainty.

☆ IMF urges China to boost COVID vaccinations, restore property sector confidence
▼ + stars: | 2022-11-23 | by ( David Lawder | ) www.reuters.com time to read: +3 min

WASHINGTON, Nov 23 (Reuters) - The International Monetary Fund urged China on Wednesday to boost COVID-19 vaccination rates and give more robust support to its troubled property sector to restore confidence and reduce risks from a global economic slowdown and high energy prices. In a statement following virtual meetings for its annual review of China's economic policies, the IMF said it was maintaining GDP growth forecasts issued in October. The IMF said economic risks for China were tilted to the downside, due to headwinds from a global slowdown, higher energy prices and tighter global financial conditions. PROPERTY SUPPORTThe Fund applauded authorities' recent support initiatives for China's slumping property sector, including a loan program to help complete unfinished homes and allowing forbearance on troubled property loans. The IMF also renewed its longstanding call for more market-based reforms in China, including ensuring "competitive neutrality" between private and state-owned firms.

The average 10-year fixed student loan rate for borrowers with credit scores below 680 is 8.30%. Federal student loan rates for 2022-23 are up by the most in almost two decades. These new rates don't directly affect private student loan rates, but private rates may go up as they don't have to stay as low to remain competitive with federal ones. Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Federal student loans have a number of protections that private student loans don't.

☆ UK lenders seek more data as consumers squeezed, Experian says
▼ + stars: | 2022-11-16 | by ( Pushkala Aripaka | ) www.reuters.com time to read: +2 min

Experian's key customers include banks, non-traditional lenders and insurance providers, which use its credit reports and scores to analyse and make decisions around credit risk, fraud prevention and lending terms. Data on Wednesday showed British inflation hit a 41-year high in October, while figures last month showed lending to British consumers rose in September by less than expected, suggesting lenders and borrowers are becoming more cautious. Experian retained its annual outlook, despite flagging tougher economic conditions ahead, sending its shares up about 2% by 0915 GMT. The company's total benchmark operating profit rose 8% to $873 million for the six months ended Sept. 30. Reporting by Pushkala Aripaka and Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Household debt soars at fastest pace in 15 years as credit card use surges, Fed report says
▼ + stars: | 2022-11-15 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Households increased debt during the third quarter at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances, the Federal Reserve reported Tuesday. The increase follows a $310 billion jump in the second quarter and represents a $1.27 trillion annual increase. The biggest contributors to that debt load came from mortgage balances, which rose $1 trillion from a year ago to $11.7 trillion, and credit card debt, which climbed to $930 billion. New York Fed researchers attributed the credit card growth to "very robust" consumption, rising prices and consumers using substantial levels of savings that remain on accounts. Auto loan debt, while posting only a slight increase on a quarterly basis, is up 5.6% from a year ago.

Refinancing your federal student loans with a private lender makes you ineligible for the Public Service Loan Forgiveness program. You will also lose access to income-driven repayment plans and economic hardship forbearance by refinancing your federal student loans. There are three reasons she decided to skip PSLF altogether and pay off her student loans on her own. Micah didn't want to go through 10 years of service and paperwork just to be denied at the end. She waited to finish paying off her undergraduate student loans before going to grad school at Columbia.

☆ A key benefit for student-loan borrowers in public service just expired. Here's what happens now.
▼ + stars: | 2022-11-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Public Service Loan Forgiveness waiver expired on October 31. Last October, President Joe Biden's Education Department announced reforms to the Public Service Loan Forgiveness (PSLF) program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. Well instead, today we are announcing permanent changes to reduce the red tape and the confusing rules that riddle the PSLF program." Part of those changes included a one-time account adjustment to borrowers enrolled in PSLF, along with income-driven repayment plans, to resolve any mistakes on borrowers' payments to date. Beyond that adjustment, PSLF borrowers can expect to see improvements to the program starting next summer.

☆ Biden's Education Department just released its 'monumental' plans to make student-debt payments cheaper for borrowers and streamline targeted loan forgiveness programs
▼ + stars: | 2022-10-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education Department released final plans to improve student-loan forgiveness programs on Monday. "We're also protecting borrowers from higher costs by limiting the practice of tacking unpaid student loan interest onto their principal balances." Improvements to targeted loan forgiveness programsBorrower defense to repayment. Public Service Loan Forgiveness. Preventing interest from spiralingIn July, the Education Department previewed its plan to tackle surging interest.

☆ Meet a 30-year-old with $110,000 in student debt who chose her job in hopes of public-service loan forgiveness — but her balance just keeps growing
▼ + stars: | 2022-10-30 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Kjerstin Laine, 30, owes over $110,000 in student debt from undergraduate and graduate programs. But interest means she's barely paid it off, and Biden's forgiveness is just a drop in the bucket. For Laine, a 30-year-old who has over $110,000 in student debt, the $20,000 in forgiveness she's set to get from President Joe Biden's plan is just a drop in the bucket. Her situation points to the larger structural issues underpinning the student debt crisis, where first-generation and lower-income students take on huge debt burdens to get ahead and up their earnings but still find themselves buried under ever-growing balances. The company that manages the entire Public Service Loan Forgiveness portfolio — MOHELA — isn't making matters any easier.

☆ Developers aren't building enough affordable housing despite an unprecedented crisis. A top executive at $3.5 billion Nuveen explains the biggest hurdles, and how builders can tap into a steady source
▼ + stars: | 2022-10-26 | by ( Jennifer Streaks | ) www.businessinsider.com time to read: +7 min

So why aren't developers building more affordable housing? And more recently, the Biden Administration's 2023 budget includes a proposal for $25 billion for Grants for Affordable Housing Production. "Nuveen so far has $3.5 billion in assets under management and has 120 actual affordable housing properties across the country in 25 states," West says about the company's affordable housing portfolio. "Inflation has a direct, immediate effect on the cost of building affordable housing. Research shows that the shortage of affordable housing costs the American economy about $2 trillion a year in lower wages and productivity.

Here are the requirements for forgiveness under PSLF, the limited PSLF waiver, and IDR:Normal PSLF requirements PSLF requirements under the limited waiver Student-loan forgiveness under one-time IDR adjustment Work requirements You must work full-time at a nonprofit, government, or tribal organization at the time of application and forgiveness. You must have made 120 eligible payments while you were employed by a nonprofit, government, or tribal organization. Accepted payment types Only payments made on time and in full count toward the 120 eligible payments needed for forgiveness. Past partial or late payments count toward the 120 eligible payments needed for forgiveness. Forbearance and deferment eligibility Forbearance and deferment periods do not count toward 120 eligible payments needed for forgiveness.

☆ It's about to get easier for government and nonprofit workers with student debt to get loan forgiveness even though the waiver expires in 6 days. Here's what you need to know.
▼ + stars: | 2022-10-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced permanent fixes to PSLF after the waiver expires on Oct. 31. President Joe Biden's Education Department announced temporary reforms in October 2021 to the Public Service Loan Forgiveness (PSLF) program, which intends to forgive student debt for government and nonprofit workers after ten years of qualifying payments. Well instead, today we are announcing permanent changes to reduce the red tape and the confusing rules that riddle the PSLF program. How these changes will work with the PSLF waiverBorrowers who apply for the PSLF waiver by the October 31 deadline will have their payments credited under the waiver. Along with these changes, the department still recommends borrowers take advantage of the PSLF waiver before it expires by checking their eligibility here.

☆ Education Department to reduce 'red tape' on public service loan forgiveness, making it easier for borrowers to qualify
▼ + stars: | 2022-10-25 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

watch nowThe Biden administration announced Tuesday it is making permanent changes to its public service loan forgiveness plan to make it easier for borrowers to have their loans forgiven. "Our team has worked to turn public service loan forgiveness from a promise broken into a promise kept," U.S. Secretary of Education Miguel Cardona said during a press call about the changes. However, from the start, the path to forgiveness has been plagued with problems, making it hard to get relief. Those may include partial, late or lump sum payments, payments made under a different repayment plan and credit for periods in deferment and forbearance. If you have either a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, you now have until July 2023 to consolidate your loans into direct loans with your servicer.

☆ Biden's Education Department just announced permanent steps to bring student-loan borrowers in targeted forgiveness programs closer to debt relief
▼ + stars: | 2022-10-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced permanent fixes to the Public Service Loan Forgiveness program. This comes just days before the PSLF waiver expires on October 31 and isn't being extended. Nearly one year ago, the Education Department announced reforms to the Public Service Loan Forgiveness (PSLF) program, which is intended to forgive student debt for government and nonprofit workers after ten years of qualifying payments. "Today, we're encouraging public service workers to take advantage of the program's temporary changes before the deadline on October 31," Education Secretary Miguel Cardona said in a statement. Although the PSLF waiver is soon expiring, the account adjustment will give borrowers one more chance to get their payment counts corrected.

PSLF helps workers at nonprofit, government, and tribal organizations get their student loans forgiven after 120 eligible payments. Under a limited waiver that expires on October 31, more payments count toward the 120 eligible payments. To help you apply for PSLF before the limited waiver expires, here are three guides — two completely free, and one that costs $47 — to help you fill out your application. Chipper app (free)The Chipper app, founded by Tony Aguilar, is designed to help people with student loans chip away slowly at their balances using spare change from everyday purchases. Additionally, Chipper has helped over 5,600 people get their student loans forgiven through PSLF.

☆ How to Apply for Student Loan Forgiveness
▼ + stars: | 2022-10-22 | by ( ) www.wsj.com time to read: +15 min

The official student loan forgiveness application is available on the Federal Student Aid website. What you can do now to prepare for student loan repayment and reliefFirst and foremost, you can fill out the application for up to $20,000 in student loan forgiveness on the Federal Student Aid website. “January will almost certainly be a chaotic time for the [student loan] servicers,” says Michael Lux, attorney and founder of The Student Loan Sherpa. You might also check out alternative options for student loan forgiveness, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. If your state charges a tax rate of 5%, for example, expect to pay about $500 in taxes on $10,000 in loan forgiveness or $1,000 on $20,000 in loan forgiveness.

Now free from large monthly payments, Nadal will redirect his monthly payments toward building his kids' future. PSLF forgives the student loans of public school teachers and other nonprofit workers after 120 "qualifying payments" (about 10 years of consistent payments). At year five of making payments, Nadal called his student loan servicer to make sure he was on the right track. Finally, weeks later, his student loan account showed a zero balance and he received a letter saying $124,572 of his student loans had been completely forgiven. He says, "Before, it was a different feeling because I just had to pay off my student loans, and I couldn't save money.

☆ Student debt could be canceled as early as October 23, and GOP states are scrambling to stop it
▼ + stars: | 2022-10-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

A federal judge dismissed a lawsuit filed by GOP-led states seeking to block student-debt relief. But the states filed an appeal, requesting the relief be paused by October 22 at 9:00 AM. On Thursday night, a federal judge dismissed a lawsuit filed by six Republican-led states who wanted to block student-debt relief, arguing it would hurt their states' tax revenues, among other things. The Cato Institute, a Koch-backed libertarian think-tank, most recently filed a lawsuit that argued debt relief would undermine recruiting through a loan forgiveness program for public servants. A judge is also expected to hold a hearing next week for a lawsuit filed by the Job Creators Network, as well.

I refinanced my student loans to get a lower monthly payment and remove my mom as a cosigner. I have affordable payment plans in place for my old credit card debt, and I've been paying my student loans diligently. Transferring your federal student loans to a private lender will make you ineligible for President Biden's student-loan forgiveness plan worth up to $20,000. My credit score went up by 40 points unexpectedlyOne factor that goes into your credit score is the length of your credit history. Besides refinancing my student loans, I also opened a secured credit card with a $200 limit for my phone and internet bill.

Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Pros Check mark icon A check mark. Low fixed rates Check mark icon A check mark. Multiple repayment terms Check mark icon A check mark. Some of the best graduate fixed rates available Check mark icon A check mark.

Banks are finding the home loan market stacked in their favour after years of low mortgage rates, but are also aware that bigger mortgage bills could spell trouble for cash-strapped customers. But the higher rates will hit borrowers hard. Mortgage payments as a proportion of gross household income were on average around 20% in June, according to BuiltPlace, a property market consultancy. They could rise to around 27% - the highest since the early 1990s - if mortgage rates were to rise to 6%, the consultancy said. The rise in mortgage rates will be a blow for millions of households' finances, Sue Anderson, head of media at debt charity StepChange said.

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