Student loan defaults: Social Security check garnishment paused
The Department of Education is pausing efforts to garnish Social Security benefits from borrowers who have defaulted on their student loan payments. Wage garnishment is still set to start later this summer.
Yahoo Finance Senior Columnist Kerry Hannon joins Wealth to explain what this means for seniors and the new challenges they face with Social Security service changes.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
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37 minutes ago
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NY nonprofit was meant to support older, disabled Americans — then it lost $650K and forced them to move out
Moving is hard under the best of circumstances, but imagine being an older or disabled person and given less than two weeks to pack up and leave. That's what happened to residents of the Enriched Housing Program in Rochester, New York, operated by the nonprofit Family Service of Rochester. The program was set up to help older and disabled people live in apartments independently. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'All I can tell you is it's very stressful. Very stressful for all the residents,' resident Bonnie Allsup told News10NBC in a story published May 28. 'They were made to move in 10 days without any kind of knowing why,' According to the local broadcaster, New York's Department of Health found Family Service's care had deteriorated so badly that it posed a risk to the health and safety of residents. Participants had trusted with program with their Social Security and disability checks in exchange for support services and rent payments. So, what exactly happened, and how can Americans prepare for the unexpected? Family Service's latest IRS 990 tax filing paints a troubling financial picture. The organization ended its 2024 fiscal year $650,755 in the red, News10NBC reports, raising serious questions about whether residents' benefits were properly handled. The program was also $400,000 behind on rent payments. News10NBC says it reached out to the CEO listed on Family Service's 990 form, Neil Cavalieri, along with the entire board of directors, and all declined to comment. Earlier in the week, days after the program's closure, News 8 WROC reported it received a statement from Family Service: 'The programs are being closed to ensure the continued health and safety of the resident participants. Residents in the programs are receiving assistance from both the Department of Health and Family Service in finding appropriate/safe alternative housing and health services.' If federal funds were misused, oversight of any investigation would likely fall to the U.S. Attorney's Office, per News10NBC. The broadcaster says it contacted the U.S. Attorney for the Western District of New York but did not immediately receive a response. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Sudden shifts in things like housing and care services can leave many vulnerable folks scrambling. Families are often left with tough financial and personal decisions including: Hiring private caregivers: Without affordable community-based services, families may have to turn to private in-home care, which can eat through savings quickly. Working adults cutting hours: Adult children may need to leave the workforce or reduce working hours to become caregivers for their aging relatives, resulting in lost wages and stalled retirement contributions. Tapping into retirement savings: Those in a fixed income may find themselves withdrawing from 401(k)s or IRAs prematurely, increasing the risk of outliving their savings. Rising household debt: To cover these costs, some households may be taking on credit card debt, personal loans or second mortgages, putting their long-term financial stability at risk. Despite these challenges, there are strategies older Americans and their families can consider: Medicaid and public aid: Some may qualify for Medicaid long-term care coverage or other government-funded programs. Check eligibility and get guidance on these programs. Community-based services: Nonprofits and local agencies might offer subsidized services such as meals, transportation and part-time caregiver relief. Long-term financial planning: Work with financial advisors who specialize in senior care and benefits, like the VA's Aid & Attendance program. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
an hour ago
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How Much Is Pope Leo XIV's Social Security Check?
Pope Leo XIV, born Robert Francis Prevost in Chicago, is making history as the first American and first Augustinian Pope. His background has already caused plenty of excitement, and lots of questions, including whether or not he gets a Social Security check. Consider This: Read Next: It makes sense to wonder, being as he is, technically, an American citizen. The short answer is no, but the full picture raises some interesting questions about citizenship, religious life and how benefits are determined. There's no direct paycheck waiting for the pope. Instead, the Vatican covers everything including housing, food, healthcare, travel and protection. That's not unique to Pope Leo XIV; it's standard for the job. Technically, he could receive a monthly stipend from the Vatican, rumored to be around $33,000, according to Fortune, but previous popes, like Pope Francis, have turned it down. As a member of the Augustinian Order, which requires a vow of poverty, Pope Leo may follow this precedent. This affects eligibility for Social Security, which depends on having worked in jobs that paid into the system, typically at least 40 credits (around 10 years of work.) As Pope Leo spent much of his adult life in Peru as a missionary and bishop, later taking on high-level roles in Rome, it's unclear whether he worked long enough in the States to qualify. Even if he did, it's hard to imagine him claiming benefits while serving as Pope. Financial support from the Vatican makes Social Security irrelevant in his case. Check Out: Here's where things get trickier. Pope Leo XIV still holds U.S. citizenship. That means he's technically on the hook for U.S. taxes, even while living in Vatican City, as under U.S. law, citizens are taxed on their worldwide income, no matter where they live. But religious vows may change the equation. As a member of a religious order, the Pope may be exempt from some tax requirements — especially if he's assigned any income directly to the order. Still, the IRS could take an interest in the value of non-cash benefits like lodging and transportation, which are often taxable under U.S. rules. There's no public record confirming whether Pope Leo XIV receives a Social Security check, but based on everything known about his life, it's highly unlikely. As a member of a religious order who took a vow of poverty, he likely didn't earn the work credits required for benefits. Even if he technically qualified, any earnings would have been assigned to the order, and his role as Pope comes with full support from the Church. So, while the question is fair to ask, the most reasonable answer is: No, Pope Leo XIV almost certainly isn't getting a check from the Social Security Administration. More From GOBankingRates Warren Buffett: 10 Things Poor People Waste Money On The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on How Much Is Pope Leo XIV's Social Security Check? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Newsweek
an hour ago
- Newsweek
Want to Improve Employee Financial Health? Pay Them More Often
Spain and Portugal top the list of desired destinations for digital nomads and aspiring expats for more than a few good reasons. They have delicious food, temperate climates, fascinating art and architecture, and relatively low costs of living compared to much of the continent. Their worker-friendly employment policies include over a month of paid time off for vacation and public holidays, as well as four months of paid parental leave for both mothers and fathers. Particularly enticing may be the bonus paychecks for employees in both June and December to help families enjoy the summer and winter holidays. But that's not the only payroll quirk that makes these countries unique, and the other one might make some wannabe Madrileños or Lisboetas think twice. If you work for an employer based in either country, you will only be paid once every month. It's a legal requirement that's common not only throughout much of Europe, but also Central and South America. An angled view of a new $100 bill laying on a bed of cash. An angled view of a new $100 bill laying on a bed of cash. Getty Images For those of us accustomed to the more common biweekly pay cycle in the U.S., it's easy to imagine the challenges this may present for family budgets—especially for workers on the lower end of the income spectrum. But monthly pay is more common in the U.S. than you might think. Nearly 11 million American full-time workers still get paid this way, including many public sector employees. But whether you're in Porto or Pittsburgh, there's little reason for unnecessary delays in giving people money they've already earned. Academic research has shown how longer waiting periods for payment hurt workers and shorter ones help them. For example, one study found that retired couples who receive their individual monthly Social Security payments on staggered weeks fare better economically than those who get them at the same time. Another study found that higher pay frequency not only improves household financial liquidity, but it can even reduce credit card borrowing between pay days. There's little doubt that higher inflation, increased housing costs, and other economic factors have exacerbated these problems for many families. All this raises an important question: in an era in which transactions occur instantly, why should one's pay be different? Frankly, why should workers have to wait at all? We recently conducted survey research to better understand the current frequency of pay for full-time workers in the U.S., as well as how decreasing waiting periods between paychecks might help them and their families. We found that over three-quarters of people are paid only once or twice a month, and 8 percent of workers are still being paid monthly. There's a strong sense that this system isn't working for workers and their families. More than half would like to be paid at least once a week. Roughly 7-in-10 individuals in households making less than $75,000 said the same, as did a similar proportion of those in families enduring challenging financial circumstances. Half of workers under 30, and nearly two-thirds of Black and Latino workers, said that increasing their pay frequency would be very or extremely beneficial to their mental wellness. Broad cross-sections also felt that more frequent pay would help them better manage their bills and expenses. To anyone who has worked for a paycheck, none of these findings should be a shock. But what might surprise you is that it's quite easy for companies to pay their people more frequently. It's an outdated mindset, not technology, that keeps paychecks tied to antiquated pay cycles. For example, my company continuously calculates take-home pay, taxes, health care premiums, retirement contributions, and other withholdings for our customers and their employees, regardless of the duration between pay cycles. We also give our customers the ability to offer their employees in U.S., Canada, and the U.K. the option to get paid at the end of every day or shift worked. The argument that more frequent paychecks can help workers isn't new. In 1886, former Governor George Robinson signed the groundbreaking Massachusetts Wage Payment Act, which required employers to pay workers at least once a week. Today, there are pay frequency laws in every state except Florida and Alabama. This includes a requirement in Michigan, New York, and seven other states for workers in certain industries to be paid weekly. At a moment when workers face higher costs of living and other economic struggles are real and rising, it's time for a new paradigm shift. This is especially true for the 44 percent of workers in the U.S. who don't make a living wage. Increasing pay frequency can't solve every ill, but it is a fast and free way to give them greater agency, choice, and flexibility in managing their family's every day and unplanned expenses. It's their money, they've earned it, and they shouldn't have to wait. Jason Rahlan is the global head of sustainability and impact at Dayforce. He has previously held a number of roles in the public, nonprofit, and private sectors. This includes time at Chobani, the Human Rights Campaign (HRC), the U.S. Department of State, and the U.S. House of Representatives. He is currently a member of the New York Stock Exchange (NYSE) Sustainability Advisory Council as well as a board member for the Center for Family Support (CFS) Foundation. The views expressed in this article are the writer's own.
