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A new income-driven repayment optionThe Biden administration is working to roll out a new, more affordable repayment plan for student loan borrowers. Instead of paying 10% of their discretionary income a month, under the new program — the Revised Pay as You Earn Repayment Plan — borrowers would be required to pay 5% of their discretionary income toward their undergraduate student loans. Previously, a borrower who made $40,000 a year would have a monthly student loan payment of around $151. Similarly, someone who earned $90,000 a year could see their monthly payments shrink to $238 from $568, Kantrowitz said. The payment plan should become available by July 2024, he said, although, "it is possible that the changes could be implemented earlier, as the U.S. Department of Education has the flexibility to implement regulatory changes sooner in certain circumstances."
Persons: Douglas Rissing, Biden, Kantrowitz, they'd Organizations: Istock, Getty, U.S . Department of Education, Pennsylvania Higher Education Assistance Agency, Granite State Locations: Pennsylvania, Granite
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKantrowitz: Apple's Vision Pro will also help sales for Meta's Quest headsetsAlex Kantrowitz, Big Technology Founder, discusses Apple's Vision Pro launch and its impact on the AI and tech sector.
Persons: Alex Kantrowitz Organizations: Meta's, Big Technology
As a result of the policy, the average borrower likely saved around $15,000 in student loan payments, Kantrowitz said. ″[T]he one-time student loan debt relief program was intended to avoid" that problem, he added. Yet consumer advocates say the troubles for student loan borrowers are far from over. "Borrowers are not ready to resume payments," said Persis Yu, deputy executive director at the Student Borrower Protection Center. To be able to afford his student loan payment in September, Berlet plans to cut back on how much food he buys.
Persons: Donald Trump, Mark Kantrowitz, Kantrowitz, James Kvaal, Joe Biden's, Mark, Kvaal, Kevin McCarthy, Biden, McCarthy, Persis Yu, Yu, they'd, Paul, Berlet, he'll, Brooks, didn't, wasn't, Paul Berlet Organizations: Twitter, Student, Protection, Kantrowitz, Education Department, Pennsylvania Higher Education Assistance Agency, Granite State Locations: U.S, Pennsylvania, Granite, Wilmington , Delaware
Piper Sandler's Michael Kantrowitz says a recession is hurtling toward the US economy. He pointed to stocks falling in lockstep with rising unemployment claims in 2007, 2000, 1990, 1981, 1973, and 1969. Today, investors are again doing a poor job of forecasting rising unemployment claims in the months ahead, Kantrowitz believes. Underpinning Wilson's call is an earnings recession this year that investors aren't pricing in. "We first started talking about the coming earnings recession a year ago and received very strong pushback, just like today.
Persons: Piper Sandler's Michael Kantrowitz, Kantrowitz, Michael Kantrowitz doesn't, Piper Sandler, it's, Louis, Greg Boutle, Cantor Fitzgerald's Eric Johnston, Venu Krishna, Morgan Stanley's Mike Wilson, Wilson, Albert Edwards Organizations: Energy, Survey, Federal Reserve Bank of St, BNP, Barclays, Conference, Board, National Federal, Independent, of Labor Statistics, Generale's Locations: lockstep
The Senate voted to repeal President Joe Biden's student loan forgiveness plan on June 1, 2023. Getty Images | BloombergA GOP-led effort to overturn President Joe Biden's sweeping student loan forgiveness plan passed the Senate on Thursday. The measure, which passed the House along party lines last week, would also nullify the pause on student loan payments. More from Personal Finance:Student loan pay pause eased forgiveness for public servantsExperts say SCOTUS will rule against student loan forgivenessWhat's at stake as SCOTUS weighs student loan forgiveness Sen. John Thune, R-S.D., acknowledged that the passage of the legislation was mostly symbolic. "We should help Americans with student debt, not make their problems worse," Schumer said.
Persons: Joe Biden's, Biden, Education Miguel Cardona, , It's, Mark Kantrowitz, SCOTUS, What's, Sen, John Thune, Thune, Joe Manchin, Manchin, Biden's, Ed Markey, Markey, Chuck Schumer, Schumer Organizations: Education, Getty, Bloomberg, GOP, Finance, Senate, Democrats, Democratic Locations: York
Anadolu Agency | Anadolu Agency | Getty ImagesDeal ends the payment pause, likely for goodThe pause on federal student loan payments is one of the few remaining Covid-related relief measures still in effect. The policy has suspended the accrual of interest on federal student debt and allowed borrowers to forgo making their payments without facing any penalties. watch nowThe White House was aiming to restart student loan payments within months anyway, Kantrowitz said, and so "the legislation does not represent a change in that regard." The Biden administration has warned that resuming student loan payments without being able to carry out its debt forgiveness plan could trigger a historic spike in defaults and delinquencies. Student loan forgiveness, other relief, not in agreement
Since October 2022, the S&P 500 is up 17% following a 25% decline as the Fed embarked on its rate-hiking cycle. The median S&P 500 price target for the end of the year is 4,000. Predicted in 2000 that the S&P 500 would likely see negative total returns over the following decade, which it did. Predicted in April 2007 that the S&P 500 could lose 40%, then it lost 55% in the subsequent collapse from 2007 to 2009. The S&P 500, by comparison, is up 1.1% over the past year.
Skynesher | E+ | Getty ImagesThe pandemic-era policy suspending federal student loan payments has been an especially big win for public servants. Most borrowers have benefited from the payment pause, which has lasted more than three years and spanned two presidencies. Here's what the payment pause has meant for those who are pursuing the relief. Advocates say that public servants deserved such a benefit after the problems that have plagued the loan forgiveness program. When the payment pause on federal student loans ends, likely in September, borrowers will have to resume payments to get credit for PSLF.
Borrowers may be down to their last few months without a student loan payment. "The most likely scenario is repayment restarts in September," said higher education expert Mark Kantrowitz. Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, also said lenders are actively preparing for the bills to restart in September. Readjusting your budget to include a student loan payment again may not be easy. Fortunately, there are steps you can take to be more prepared.
Persons: Mark Kantrowitz, Scott Buchanan, servicers, Biden Organizations: Biden, U.S . Department of Education, Student Loan, Alliance, Finance, House Democrats, Social
Expect Interest Rates on Federal Student Loans to Rise
  + stars: | 2023-05-19 | by ( Ann Carrns | ) www.nytimes.com   time to read: +1 min
Interest rates on new federal student loans are expected to exceed 5 percent for the first time in five years, adding to the pressure on families already struggling to pay for college. Rates for undergraduate student loans for the coming academic year are expected to rise to nearly 5.50 percent, from 4.99 percent. Rates on other types of federal education loans will probably rise as well. Rates stay fixed for the life of a federal student loan, but new loans are priced each July, based on the 10-year Treasury bond auction in May. The rates are influenced by the Federal Reserve, which has been aggressively raising interest rates in an attempt to cool inflation.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHightower’s Stephanie Link names sectors outside of tech that will benefit from the A.I. tailwindHightower’s Stephanie Link, Big Technology's Alex Kantrowitz and Virtus’ Joe Terranova, join 'Closing Bell' to discuss companies vying for a piece of the A.I.
Still, advocates are worried about the administration's plan to soon resume federal student loan payments, which have been suspended since March 2020, without deeper debt cancellation. Even before the Covid-19 pandemic, 1 in 4 student loan borrowers were in delinquency or default. Here's a breakdown of the debt relief already granted — and how to know if you qualify for it. Defrauded borrowers got $13 billion in reliefThe Biden administration has been focused on canceling the student debt of borrowers who say their colleges misled them. Betsy Mayotte president of The Institute of Student Loan AdvisorsThe Project on Predatory Lending at Harvard University has a list of some of the institutions that were part of a student loan cancellation settlement.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInvestors looking toward Google I/O 2023 for resurgence of Google's A.I. visionAlex Kantrowitz, Big Technology founder, joins 'The Exchange' to discuss Google CEO Sundar Pichai's keynote address at Google I/O 2023, changing consumer behavior with A.I., and the evolution of Google's Bard product.
For small firms, conditions were slightly more stringent with a net 46.7% of banks saying credit terms were stiffer now vs 43.8% in the last survey. Banks reported that firms of all sizes were showing less demand for credit than three months earlier. But policymakers don't want the credit tightening to go so far as to cause a recession. One closely watched survey response, for example, is the net share of banks tightening commercial loan standards for large and middle-sized firms. The survey, with tightening standards a leading indicator of eventually falling loan volumes, has "historically helped determine whether a Fed tightening cycle leads to a hard or soft landing."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'We're going to see the other side' of the pandemic credit boom, says Piper Sandler's KantrowitzMichael Kantrowitz, Piper Sandler chief investment strategist, joins 'Last Call' to discuss the latest Fed survey, credit tightening, and more.
As the mother of a college sophomore and high school senior, I know thinking about paying for college is daunting. Financial aid is determined by income information that is not necessarily up to date. If your circumstances are now different, that should be brought to the financial aid office's attention, he said. If you're concerned about making ends meet based on the financial aid award letter your child has already received, you can still ask for more aid. "So performing well throughout your high school career is not only important for admission but also for scholarship awards."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKantrowitz: We're in a spot where the tech giants shouldn't necessarily be leading the marketsBig Technology founder Alex Kantrowitz discusses the overall strength of earnings from the mega-cap tech names, and how that's playing into the performance of the broader market this year.
Steve Prezant | The Image Bank | Getty Imageswatch nowHere are four strategies high school seniors, and their families, can consider to avoid ending up deep in debt. "To reduce student loan debt, enroll at a less expensive college," Kantrowitz said, adding that public colleges often "provide just as good a quality of education." Families can continue saving in a 529 plan while their child is enrolled in college, Kantrowitz said. Meanwhile, more than $6 billion in scholarships are awarded to college students each year, according to Kantrowitz. According to calculations by Kantrowitz, around 1 in 8 college students has won a scholarship.
The chart below shows how far the S&P 500 would have to fall to provide either a 10% return or 2% premium over Treasury bonds. He sees the S&P 500 finishing 2023 at around 3,150, he told YouTube channel Wealthion. Predicted in 2000 that the S&P 500 would likely see negative total returns over the following decade, which it did. Predicted in April 2007 that the S&P 500 could lose 40%, then it lost 55% in the subsequent collapse from 2007 to 2009. The S&P 500, by comparison, is up 0.8% over the past year.
Three companies that serviced federal student loans — Navient , the Pennsylvania Higher Education Assistance Agency (also known as FedLoan) and Granite State — all said they'd be ending their relationship with the government. Impacted borrowers should get multiple notices, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. But if you can afford it, the standard repayment plan is just 10 years. To calculate how much your monthly bill would be under different plans, use one of the calculators at Studentaid.gov or Freestudentloanadvice.org, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. If you do decide to change your repayment plan, Mayotte recommends submitting that application with your servicer before payments turn back on.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStock market will be range bound until unemployment claims rise, says Piper Sandler's KantrowitzMichael Kantrowitz, Piper Sandler chief investment strategist, and Komal Sri-Kumar, Sri-Kumar Global Strategies president, joins 'Power Lunch' to discuss the trajectory of the markets over the next six to eight months, why rising unemployment claims would be good for markets and much more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Piper Sandler's Michael Kantrowitz and Komal Sri-KumarMichael Kantrowitz, Piper Sandler chief investment strategist, and Komal Sri-Kumar, Sri-Kumar Global Strategies president, joins 'Power Lunch' to discuss the trajectory of the markets over the next six to eight months, why rising unemployment claims would be good for markets and much more.
Big Tech beats: Microsoft & Alphabet post strong earnings
  + stars: | 2023-04-25 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBig Tech beats: Microsoft & Alphabet post strong earningsHosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy. Tune in Monday through Friday at 7 p.m. ET on CNBC. Edmund Lee, The New York Times, and Alex Kantrowitz, Big Technology, joins the show to discuss earnings from Alphabet and Microsoft.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAlphabet will ultimately lose this chatbot war: CIC Wealth's Malcolm EthridgeAlex Kantrowitz founder of 'Big Technology,' and Malcolm Ethridge, CIC Wealth executive vice president, join 'Closing Bell' to discuss their thoughts on Alphabet, what Alphabet's news means for the company's ambitions, and more.
The Biden administration's sweeping plan to cancel up to $20,000 in student debt for tens of millions of Americans may have an unintended, though hopefully temporary, consequence for some people, experts say. "For many borrowers, it will cause their credit scores to drop," said higher education expert Mark Kantrowitz. Here's why: Throughout the three-year pause on federal student loan payments, borrowers' accounts have been reported to the credit bureaus as current, Kantrowitz said. More from Personal Finance:Here are the 2 Supreme Court student loan forgiveness casesFederal student loan payments could restart in roughly 2 months, or 6Being behind on federal student loans can lead to more money problemsOn-time payments help boost people's scores. Of course, a temporary dip in a credit score will not likely matter much to someone getting thousands of dollars in debt forgiveness.
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