BRIEFING INFORMATION ABOUT THE MARKETS AND YOUR MONEY.
Kiplinger's Personal Finance|November 2022
THE ROCKY ROAD TO STUDENT DEBT FORGIVENESS
BRIEFING INFORMATION ABOUT THE MARKETS AND YOUR MONEY.

The Biden administration's student debt relief plan will be costly and tough to administer. An early estimate pegged the price tag at north of $300 billion, easily canceling out the benefits resulting from the Inflation Reduction Act. The pause on payments for federal student loans has been extended until yearend to give the Department of Education time to put the plan in place.

Besides administrative issues, there are other hurdles. One is legal uncertainty. Expect lawsuits arguing that the administration can't do universal debt relief without Congress. Others worry about the effect on the economy.

Former Treasury Secretary Larry Summers warned on Twitter that student loan debt relief "is spending that raises demand and increases inflation."

 A quick recap. Individuals. with federal student loans who meet certain income thresholds will qualify for $10,000 in debt cancellation (Parent PLUS loans are also eligible). If you have Pell grants, you may be eligible for debt cancellation of up to $20,000. You qualify if you are single and earn less than $125,000, or you're married and file your taxes jointly or are a head of household and your income is less than $250,000. Eligibility will be based on your adjusted gross income. Income figures from either 2020 or 2021 can qualify you for eligibility, but 2022 income will not.

The Department of Education has 8 million borrowers' income data. Others have to apply. Stay tuned for guidance from your student loan servicer. The department should have an application available by early October. You can sign up for e-mail updates from the Department of Education at www.ed.gov/subscriptions. The department will stop taking applications on December 31, 2023.

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Denne historien er fra November 2022-utgaven av Kiplinger's Personal Finance.

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FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

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2 mins  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

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2 mins  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

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5 mins  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

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3 mins  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

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6 mins  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

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2 mins  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

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6 mins  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

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10+ mins  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

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8 mins  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

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4 mins  |
December 2024