IMPERFECTIBILITY

As President Joe Biden’s term draws to a close, he has granted federal student loan relief to an additional 150,000 borrowers.

These 150,000 borrowers include almost 85,000 who attended schools that cheated and defrauded their students, 61,000 borrowers with total and permanent disabilities, and 6,100 public service workers. The debt forgiveness now brings the number of students whose student debt has been canceled during his administration to more than 5 million, according to a White House release.

The latest wave of debt relief includes 6,100 borrowers who have had $465 million of debt forgiven through the Public Service Loan Forgiveness (PSLF) program. This is a testament to the potential of such programs to alleviate the burden of student debt.

“Identifying 5 million people for student loan forgiveness means the federal government is finally keeping its promises,” U.S. Under Secretary of Education James Kvaal said. “People who cannot afford their student loans because they are in public service, have disabilities, were cheated by their college, or who have completed decades of payments are now getting the relief they were promised. These permanent reforms will continue for more and more borrowers every year.”

If you want to pay down your private student loan debt, a refinance could help you lower your interest rate and monthly payment. To see if this is the right option, contact Credible to speak to a student loan expert and answer your questions.

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The Supreme Court previously blocked the Biden administration’s plans for broader student loan forgiveness. In 2023, the court stopped the administration from forgiving $400 billion in debt affecting more than 40 million borrowers.

In August, the Supreme Court shut down another administration proposal to lower monthly payments and speed up loan forgiveness. After the Supreme Court struck down Biden’s student loan forgiveness plan, Biden introduced SAVE. The White House said that the SAVE plan could lower borrowers’ monthly payments to zero dollars, reduce monthly costs in half and save those who make payments at least $1,000 yearly.

The Biden administration withdrew plans for an alternative student debt forgiveness plan in December.  Despite losing in the Supreme Court, the administration has forgiven some $183.6 billion in student debt thanks to fixes implemented to process PSLF applications and approve discharges. The total number of borrowers approved for PSLF is now 1,069,000 and $78.46 billion compared to 7,000 borrowers who had received PSLF at the start of the Biden-Harris administration, according to the Department of Education.

Moreover, the administration approved $56.5 billion in debt relief for more than 1.4 million borrowers through Income-Driven Repayment, including the Saving on a Valuable Education SAVE plan.  Some borrowers also have access to an extra $900 in Pell Grant funds to pay for school. Additional debt forgiven includes the student debt of borrowers whose schools cheated, saw their institutions precipitously close, or are covered by related court settlements.

Private student loan borrowers can’t benefit from federal loan relief. But you could lower your monthly payments by refinancing to a lower interest rate. Visit Credible to speak with an expert and get your questions answered.

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Republican Representative Glenn Grothman (R-WI) introduced a bill during the last Congress that effectively blocked any future mass student loan cancelation plans. The Protecting Taxpayers From Student Loan Bailouts Act prohibits the Secretary of Education from issuing regulations or executive actions that increase the costs of the federal student loan program.

The bill was ultimately incorporated into the College Cost Reduction Act, which did not reach a vote on the House floor.

“Congress might still consider taking action to block future administrations from forgiving debts,” Preston Cooper, American Enterprise Institute senior fellow, said in a blog post.

Cooper said that Republicans may not want to risk the chance that the next Democratic administration will successfully pursue a loan cancelation strategy that is less vulnerable to legal challenges.

Borrowers with private student loans could find relief by refinancing to lower their monthly payments. An online tool like Credible can help you compare student loan refinancing rates before you apply to help find the best deal for you.

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Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

They say you get better as you get older. This might just be true for 401(k) plans in 2025 for those striding into their golden years. Planning for retirement just got a significant boost for Americans aged 60 to 63, thanks to provisions in the SECURE Act 2.0.

Beginning in 2025, individuals in this age group will be eligible for something called a “super catch-up” contribution limit for employer-sponsored retirement plans, including 401(k)s. This exciting change, recently clarified by the IRS, provides a unique opportunity to accelerate your retirement savings during those crucial pre-retirement years.

Catch-up contributions allow individuals aged 50 and older to save extra money for retirement beyond the standard contribution limits. For 2024, the catch-up contribution limit was $7,500, on top of the $22,500 annual contribution cap for 401(k)s and similar plans. These additional contributions are designed to help older workers close any retirement savings gaps they may have accumulated over the years.

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Under the SECURE Act 2.0, individuals aged 60, 61, 62, and 63 can contribute even more to their retirement accounts starting in 2025. The new “super catch-up” limit will be the greater of $10,000 or 150% of the regular catch-up contribution limit for the given year, adjusted annually for inflation. At 64, you go to the regular catch-up.

For example, if the regular catch-up contribution in 2025 remains at $7,500, the super catch-up limit would increase to $11,250 (150% of $7,500). If the $10,000 floor is adjusted for inflation, it could rise even higher, allowing individuals to add substantially more to their retirement savings.

This enhancement comes at a pivotal time for many individuals. Those in their early 60s often find themselves at the peak of their earning potential, with more disposable income available for saving. At the same time, they are rapidly approaching retirement and may feel pressure to bolster their nest eggs. The super catch-up offers a golden opportunity to bridge any shortfalls and strengthen their financial security.

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Additionally, this provision aligns with the reality that many Americans are living longer. Increasing retirement savings can help ensure a more comfortable and secure retirement in the face of rising healthcare costs, inflation and other financial challenges.

To take full advantage of the super catch-up, it’s essential to plan strategically:

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The super catch-up contribution is a testament to the growing focus on enhancing retirement readiness for Americans. By leveraging this opportunity, individuals aged 60 to 63 can significantly boost their retirement savings, potentially lower their overall tax liability, and provide greater peace of mind as they transition into their golden years.

If you’re approaching this age bracket, now is the time to review your retirement strategy and prepare to make the most of this exciting new provision. Retirement is a journey, and with the super catch-up, you can ensure yours is as secure and fulfilling as possible.

Ted Jenkin is president of Exit Stage Left Advisors and partner at Exit Wealth.

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As the new year gets underway, some Americans may be on the hunt for new jobs.

The 2025 edition of LinkedIn’s “Jobs on the Rise” report released on Tuesday identified positions that have been seeing notable growth in the U.S. in the past few years.

Two roles related to artificial intelligence – artificial intelligence engineer and artificial intelligence consultant – placed first and second in the U.S., according to the report.

The career-focused website linked that to the massive increase in demand that the AI sector is experiencing.

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In addition to AI, a variety of other sectors were represented in the top 10 of the report.

LinkedIn used growth rates calculated from millions of positions that LinkedIn users stepped into during a timeframe spanning Jan. 1, 2022 to July 31, 2024 to craft its U.S. list of booming positions.

The 10 jobs at the top of LinkedIn’s 2025 report included the following:

The U.S. report featured a total of 25 jobs in its ranking, some of which were not present in past iterations of “LinkedIn Jobs on the Rise.”

For instance, two positions from the top 10 fast-growing roles – travel adviser and event coordinator – made appearances in 2025 thanks to people taking more trips and attending more live events in the wake of the COVID-19 pandemic, according to LinkedIn.

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Some other roles showing up in the top 25 job ranking for the first time this year included artificial intelligence researcher, community planner, land agent, bridge engineer and commissioning manager.

LinkedIn also noted that “almost half of this year’s Jobs on the Rise in the U.S. didn’t exist 25 years ago – including roles like Artificial Intelligence Engineer, Workforce Development Manager and Chief Growth officers – reflecting the evolving world of work and emerging opportunities that jobs seekers may not have considered before.”

In late October, ResumeTemplates.com reported 56% of American full-time workers indicated they were “already looking for a new job or plan to start” in 2025.

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Americans have historically been averse to discussing financial matters among family members, but a recent study by Fidelity Investments found that attitudes toward taboo wealth topics are shifting.

Fidelity’s State of Wealth Mobility study found that 56% of Americans didn’t discuss family finances with their parents when they were children. Of that group, 82% wish that they had, because they think it would’ve been beneficial to have received a financial education at an earlier age.

It also found that Americans’ attitudes to those talks are changing, with 83% of respondents saying that it’s important to talk about money management with children, and 67% of parents already talking to their children about family finances.

“Money and wealth is one of the topics that, notoriously, we just don’t like to talk about historically,” David Peterson, head of advanced wealth solutions at Fidelity Investments, told FOX Business. “Wealth is like a deeply personal experience, so in some respects, it’s not surprising that people have historically been uncomfortable talking about it.”

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“The study indicated that people are starting to sort of break that cycle of avoiding the family discussions. And so clearly, if we relate that then to the intergenerational wealth transfer, that is sort of a generational difference, and what we found is that older people generally – they’re just not as comfortable talking about it,” Peterson said.

Peterson said that many Americans have experienced the complications that can arise when a parent who hasn’t been as open about their finances begins to decline, and family members have to step in to help take care of their finances.

“When people start reaching end of life, and they suddenly can’t manage their own finances or they no longer have the capacity to make decisions around it, this is where you start to see things kind of go sideways a little bit, because they haven’t shared with their families what their wealth is, where the wealth is, what it’s made of,” he said. “And you can find yourself very quickly in a situation where, during a really emotional time of life, people are now worried about, well, how do we actually manage mom and dad’s finances when they can no longer do it themselves?”

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He said that it’s important for families to have documents including a health care proxy or health care power of attorney to help navigate the health care system, as well as a living will with instructions about the individual’s hopes around that. A financial power of attorney that entrusts someone to act on their behalf on financial matters is another key document.

Families should also consider other documents and designations needed for end-of-life, Peterson said. Brokerage accounts that can be jointly titled with rights of survivorship can be transferred very easily to the surviving owner, while beneficiary designations can also be included to transfer accounts on death to the beneficiary.

“You need a will, which is going to account for all the things that don’t really have a title to it or a beneficiary designation on it,” he added. “And then, in some cases, it might be beneficial to have a trust and put assets in that trust so that they can pass, similarly to an account with a beneficiary designation. The trust will then define who gets all those assets that are in the trust.”

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Peterson suggested that to get the ball rolling it can be helpful to do so with the understanding that it’s not likely to be a one-off conversation and more of a process to ease some of the pressure and emotions surrounding those talks.

“I think for some people, having a very strict itinerary of what you’re going to talk about works very well; in other cases it doesn’t, and my recommendation is not going into the conversation thinking that it’s going to be a one-and-done kind of conversation. These are hard conversations to have,” Peterson said. “Look, I’m in the business, and I remember having the conversation with my dad, who’s now passed, and you would think it’d be easy for me, but it’s not, because these things are wrapped up in all sorts of emotions.”

Sharing some details about financial accounts and points of contact can also be a good first step, even if it doesn’t necessarily lead to full disclosures about the specifics of an older person’s wealth, he explained.

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“Given particularly older generations aren’t as willing to reveal necessarily all the specifics of their wealth, what I often recommend is that you at least share what it is, not necessarily the amount, but where it is; who are the key people to contact in the event that a family member has to know more about it. And keep all these things in a place that’s easy for people to find,” Peterson said.

“Probably the first step is just doing a really robust inventory of what’s there, a balance sheet, a wealth statement, a net worth statement, whatever you want to call it – but just this list of things so that when someone has to act on it, they at least know where to go,” he explained. “And that way, you sort of protect this sensitivity around how much is in all of these different accounts or banks or financial institutions.”

Regardless of the process individual families use to build their financial plans, Fidelity’s study found that having a plan is a confidence booster. While about four in 10 Americans are worried about losing their wealth, 78% with a financial plan said they’re confident they’ve taken the right steps to build and protect their wealth, compared to 26% and 27%, respectively, of those without plans.

The elevated inflation in recent years continued to wreak havoc on many Americans’ wallets in 2024, but the start of the new year provides a great opportunity to set new financial goals to get back on track.

“As we step into 2025, the country’s financial landscape calls for proactive resolutions to address rising concerns such as inflation and debt,” WalletHub analyst Chris Lupo told FOX Business. “Top financial resolutions for 2025 should be focused on smart budgeting, saving, and debt repayment.”

Here are some of the top financial New Year’s resolutions for 2025, according to WalletHub:

“With Americans carrying nearly $1.3 trillion in credit card debt, setting realistic budgets is a must,” Lupo said.

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Lupo says saving is also key, as many households lack emergency funds. He suggests starting small with a goal of saving two months’ take-home pay and working your way up to a year’s worth.

“Don’t forget to maximize your earnings: 5%+ APYs on online savings accounts make switching banks worthwhile,” he noted, adding that high-yield Certificates of Deposit (CDs) are also worth considering.

High-interest debt is costly, so Lupo says to consider tools like balance transfer cards or debt consolidation loans to cut costs.

The average American is currently carrying more than $10,000 in credit card debt, and the sooner it can be tackled, the better. WalletHub says it is important to get serious about it, but suggests it is probably best to start small by setting a goal of chipping away at a quarter of it over the course of the year.

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Look for ways to cut costs in everyday expenses, like shopping around for everything you buy, taking advantage of deals and coupons, turning the thermostat down, buying in bulk and cutting back until prices come down.

WalletHub has another 10 suggestions for 2025 financial resolutions, including paying bills right after getting your paycheck, making sure you have enough insurance for a catastrophe, protecting your identity, brushing up on your financial literacy and even looking for a better job.

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“Focus on financial literacy and healthy money habits, like paying bills immediately after payday,” Lupo said. “These steps will help make 2025 a financially healthier year.”

The Federal Reserve just cut interest rates one more time this year. In their recent meeting, the Fed decided to cut rates by a quarter of a percentage point, dropping rates to 4.25% to 4.5%. This move was largely expected by economists.

The Fed cited indicators of an expanding economy and an easing labor market after its other rate cuts. This is the third time rates have been cut this year, but economists don’t expect as many cuts in 2025.

“The median member now expects that there will only be two cuts in 2025 and that the federal funds target will be 3% in the long run,” MBA Senior Vice President and Chief Economist Mike Fratantoni said in a statement. “MBA forecasts that the federal funds rate will only drop to 3.75% this cycle.”

The unemployment rate also remains low, and inflation is making slow but steady progress towards the committee’s 2% goal, both factors that created a bottleneck in the final decision to cut rates.

“While the unemployment rate has increased over the past year, and inflation has trended down, in recent months, inflation has plateaued,” Fratantoni said. “It was not surprising to see a dissent at this meeting, with one member voting to keep rates steady.”

With the latest rate cut, The Federal Reserve hopes to inch closer to their inflation growth and ease the unemployment rate.

Worried about the state of the economy? You could consider paying down high-interest debt with a personal loan at a lower interest rate. Visit Credible to speak with a personal loan expert and get your questions answered.

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The housing market has faced a roller coaster of a year, but certain aspects are expected to raise home sales in 2025. Real estate experts predict a slow thaw for mortgage rates, giving prospective buyers who have been priced out of the market in recent years more wiggle room.

Many housing market measures are trending closer to historical norms, showing signs of an improved market in the new year. Listings are still lower than before the pandemic, but there are significantly more than in March, when there was a 25% deficit, according to Zillow.

Buyers shouldn’t expect an entirely smooth path when buying in 2025, however. For many, 2025 looks eerily similar to the volatile market of 2024.

“There’s a strong sense of déjà vu on tap for 2025. We are once again expecting mortgage rates to get better gradually, and opportunities for buyers should follow, but be prepared for plenty of bumps on that path,” Zillow Chief Economist Skylar Olsen said.

Shoppers looking to move in the slower winter months have an advantage. Sellers who have been waiting for rates to drop may be looking to unload their homes while interest rates are on the decline.

“Those shopping this winter have plenty of time to choose and a relatively strong position in negotiations,” Olsen said.

If you’re looking to purchase a home, consider visiting Credible to find the best mortgage rate for your financial situation.

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More listings may be on the horizon, but buyers shouldn’t expect rock bottom mortgage rates any time soon. Prices also aren’t set to drop just yet. Prices are expected to grow by 3.7%, Realtor.com recently reported.

Mortgage rates are also expected to remain in the 6% range, with fluctuations over the year, much like 2024. Due to these small improvements, single family home listings are expected to grow by nearly 14%, according to Realtor.com.

Sellers in certain highly desirable areas will still hold the power in 2025. Inventory is improving, but it’s still limited compared to years past. This gives sellers the upper hand when negotiating prices.

How the newest presidential administration will factor in the housing market recovery process is difficult to predict, but there’s a potential for a “Trump Bump”, as Realtor.com calls it.

“While President-elect Trump can work quickly with his administration to implement some regulatory changes, other policies that will affect housing, such as tax changes and broad deregulation, require the cooperation of other branches and levels of government,” Realtor.com Chief Economist Danielle Hale said.

“The size and direction of a Trump bump will depend on what campaign proposals ultimately become policy and when,” Hale said. “For now, we expect a gradual improvement in housing market dynamics powered by broader economic factors. The new administration’s policies have the potential to enhance or hamper the housing recovery, and the details will matter.”

If you think you’re ready to shop around for a home loan, use Credible to help you easily compare interest rates from multiple lenders in minutes.

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Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

As the new year approaches, more Americans have a brighter outlook for the state of their personal finances in 2025, a recent survey indicated.

Bankrate said Thursday its survey found that 44% of American adults expect to see their financial situation become either “somewhat” or “significantly better” next year, a 7 percentage-point increase from the roughly same time last year.

The survey, conducted on the personal finance site’s behalf by YouGov, took place Nov. 6, the day after the 2024 election, through Nov. 8 and involved nearly 2,500 American adults.

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Less inflation was the most common driver behind the rosy outlooks, with 36% of Americans pointing to that, according to the data.

The U.S. saw inflation measured by the Consumer Price Index increase 0.3% month-over-month and 2.7% year-over-year in November, the government reported.

Other factors played into positive financial expectations for 2025, the survey found.

For instance, over one-third of Americans that anticipate they will see better personal finances in 2025 reported “rising income” as helping guide their positive outlook. A slightly lower share (30%) pointed to “having less debt,” while “work done by elected representatives” and “better spending habits” also factored into optimism for 25%.

A separate July survey from Discover Personal Loans had reported 80% of Americans were experiencing “some level” of anxiety stemming from finances.

Meanwhile, Bankrate found Thursday that 33% of Americans foresee the state of their finances remaining as they currently are next year.

Just shy of a quarter of Americans held gloomier expectations for their financial situations, reporting they anticipated things would become “somewhat” or “significantly worse,” the Bankrate survey showed.

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Inflation also had the most weight for U.S. adults anticipating worsening finances. That was followed by “work done by elected representatives” cited by 30%, “stagnant or reduced income” cited by 28% and debt holdings by 20%, among other factors, according to Bankrate.

“Post-election, our survey finds that some Americans see elected officials either as a reason why their finances might not improve (or why they will), affirming a continuing political divide. No matter where someone stands along the political spectrum, the opportunity remains for all to identify financial goals and to act upon them,” Mark Hamrick, a senior economic analyst at Bankrate, said in a statement.

About 21% of Americans have their sights set on reducing their debt in the coming year, the survey found.

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As of the third quarter, American households collectively owed $17.94 trillion worth of debt, including things like mortgages, auto loans, credit cards and student loans, according to the Federal Reserve Bank of New York.

Americans had $12.59 trillion in mortgage balances in the third quarter, for instance. Student loans amounted to $1.61 trillion, while auto loans totalled $1.64 trillion, the New York Fed found.

Paying utilities bills, including ones for electricity, is a responsibility that many Americans face – and some have difficulty covering – each month.

Nationwide, the amount of money that Americans had to pay for electricity in August averaged $185.59, according to a recently-released report from LendingTree. However, it found residents in some states faced heftier monthly bills than others.

The five most-expensive states clocked average monthly electricity bills whose costs ranged from 21.6% to 37.1% above the national average, it reported.

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LendingTree said its findings for monthly electricity bill costs were based on data from the Energy Information Administration (EIA).

Residents in the following five states were on the hook for the largest average electricity bills in August, according to LendingTree’s analysis:

LendingTree found “usage matters,” reporting some states “may have high rates” for each kilowatt-hour used “but low average monthly bills (and vice versa).”

LendingTree’s findings about electricity bill costs comes as it reported 23.4% of Americans experienced an inability to cover their entire energy bill or portions of it in the last year, based on Census Bureau Household Pulse Survey data.

The share who felt that creeped up 1.4 percentage points year-over-year, it said.

“Even though inflation has moderated in recent months, life is still crazy-expensive, and that can make it hard to pay your bills,” LendingTree chief credit analyst Matt Schulz said in the report. “Lots of people have found themselves needing to make difficult decisions to keep the lights on.”

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Overall inflation measured by the Consumer Price Index increased 0.3% month-over-month and 2.7% year-over-year in November, according to the Bureau of Labor Statistics.

For electricity, prices posted a 0.4% drop month-over-month but remain up 3.1% from 12 months ago. Meanwhile, utility gas service prices rose 1% from October and 1.8% from November 2023, the CPI data showed.

Needing to cover utility bills prompted 34.3% of Americans to curb their spending on necessary things – or eliminate some altogether – in at least one instance in the prior year, LendingTree said.

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In September, the Bureau of Labor Statistics reported American households saw an average of $77,280 in household expenditures in 2023. That equated to about $6,440 per month.