Skimm Money: Student Loan Forgiveness, The $9 Rule, and IRAs

How the news affects your finances.

Student Loan Forgiveness

Today, President Biden announced a new student debt relief plan that could provide forgiveness for up to 70% of student loan holders as early as this fall. In the meantime though, some federal student loan borrowers may qualify for relief much sooner. Now through April 30, certain borrowers can apply for a payment adjustment. This consolidates all of your loans and takes your entire payment history into account. It also means you may be eligible for forgiveness via an income-driven repayment plan sooner than you thought. Use the tips below to do your research, hit the deadline (again, April 30), and start planning your forgiveness TikTok dance.

Your move:

• Know your options. Consolidation is smart in most cases, but not all. We repeat: Not all. Consider talking with a financial professional to determine if it’s right for you. (Psst…The Institute of Student Loan Advisors offers free advice.)

• Get your paperwork in order. And, more importantly, know where to submit it. Because there are scams claiming to help you qualify for forgiveness. You can do everything yourself online at the Department of Education’s website.   

• Consider refinancing your private student loans. They aren’t part of any federal loan forgiveness plan, but refinancing your private loans could help you save $$$. Advantages include: One monthly payment and, potentially, a lower interest rate. Pro tip: Compare rates at a few companies to get the best one.

The money stories everyone’s talking about.

Should you remove your college graduation year from LinkedIn?

You might want to consider it if you’re not part of the Goldilocks generation.

If you’re having a particularly bad Monday…

PSA: Flights to Hawaii and the Caribbean are on sale.

Not news: Buying a home is expensive…

News: This bank will give you free $$$ toward closing costs. See if you’re eligible.

Don’t have the $$$ for a remodel?

Try the $9 rule instead.

The Wall Street trends to know this week.

March CPI data is due this week, which will almost certainly affect the market. Last Friday, a strong jobs report created a slight lift. But analysts are concerned that the report may also signal that the Fed won’t cut interest rates in June, which could mean disappointing returns for the market. If CPI data shows signs of inflation heating up (again), investors are bracing for a hit.

One act of financial self-care you can do in five minutes.

Max out your IRA. 

Take advantage of tax-deductible contributions now, and save on taxes when you withdraw your money later. Plus, the sooner you start, the more you’ll make off your investments thanks to compound returns. Can’t afford to sacrifice a lot of $$$ for Future You right now? Smaller monthly contributions work, too. The key is to start ASAP to give your money time to grow, so you can relax — or travel — later. PS: You have one week to make a last-minute contribution to potentially save on your 2023 taxes.

theSkimm helps you tackle your to-do lists, whether you're refinancing your loans or choosing a daycare for the first time. We talk to experts and real women to empower you to make decisions faster and with more confidence. Check out our guides to get started.

PS: Your feedback makes a big impact. Let us know what you like, what could be improved, and most importantly, if we helped you get sh*t done. Share your thoughts.