Latest news with #AlexBeene
Newsweek
19 hours ago
- Business
- Newsweek
Social Security Payments May Be Lower This Month: Who's Impacted
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Hundreds of thousands of Americans will see their Social Security payments shrink this month as the federal government resumes garnishing benefits from borrowers who defaulted on student loans. The Department of Education and Treasury Department began issuing notices in May warning approximately 195,000 Social Security recipients that their checks would be reduced, with collections starting in early June. The Trump administration restarted federal collections on defaulted student loans after a five-year pause, marking the first time since the onset of the COVID-19 pandemic that recipients have been at risk of losing part of their Social Security income to student loan debt. "This is the latest effort to eliminate some of the forgiveness efforts under the prior administration and take student loans more seriously in terms of repayment," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "For some Americans, the prospect of seeing smaller checks in the coming months if they fail to start making payments on their own is a very real one. Why It Matters The policy shift directly affects older Americans, many of whom rely on Social Security as their main or only source of income. The Consumer Financial Protection Bureau reported earlier this year that about 450,000 Americans aged 62 and older were in default on their federal student loans and likely receiving Social Security payments. The resumption of garnishments, which were paused for years by emergency pandemic measures, puts financially vulnerable retirees at further risk of poverty. A Social Security Administration (SSA) office in Washington, D.C., March 26, 2025. A Social Security Administration (SSA) office in Washington, D.C., March 26, 2025. SAUL LOEB/AFP via Getty Images What To Know Who Is Impacted and How Garnishments Work The U.S. Treasury Offset Program allows the government to withhold up to 15 percent of monthly Social Security benefits from borrowers in default on federal student loans. Beneficiaries receiving the average Social Security check of $1,976 could see a reduction of $296.40 per month. Recipients were shielded from collections and negative credit reporting during pandemic-era protections, but those defenses ended as the administration said it sought to restore accountability to the student loan system. A borrower is typically considered in default after missing 270 days of payments. Once in default, loans are usually transferred to collection agencies authorized to pursue garnishments through tax refunds, wages, and Social Security payments. Notices and the Scope of Collections In May, the Department of Education sent 30-day warnings to 195,000 defaulted student loan borrowers that their benefits would be garnished in June. All 5.3 million defaulted federal student loan borrowers will receive notice that they could later also face wage garnishment before the end of the summer. Demographic Impact The Consumer Financial Protection Bureau found that the number of people aged 62 or older in default on student loans and receiving Social Security has soared, with the affected group growing over 3,000 percent since 2001. These garnishments primarily pay off accumulated interest and collection fees, with relatively little reducing the original loan principal. Many older Americans facing Social Security offsets rely on these payments for most of their living expenses, and collections often force recipients to choose between paying for basic needs or health care. Options for Those in Default Banks and the Department of Education offer borrowers options to return to good standing, but these are often complex and time-consuming. Borrowers can try loan rehabilitation (making nine on-time payments within 10 months), loan consolidation, or, as a last resort, bankruptcy. Payment plans, deferment, forbearance, or income-driven repayment plans can also be arranged before default to help avoid garnishment. Financial Risks Beyond Social Security Reductions Defaulted borrowers may lose eligibility for additional federal student aid and other benefits and may suffer long-term damage to their credit scores. This can affect the ability to access credit, purchase a home, or finance other major purchases. What People Are Saying Linda McMahon, Secretary of Education, said in a statement, "As we begin to help defaulted borrowers back into repayment, we must also fix a broken higher education finance system that has put upward pressure on tuition rates without ensuring that colleges and universities are delivering a high-value degree to students. For too long, insufficient transparency and accountability structures have allowed U.S. universities to saddle students with enormous debt loads without paying enough attention to whether their own graduates are truly prepared to succeed in the labor market." Mike Pierce, Executive Director of the Student Borrower Protection Center,said, "For 5 million people in default, federal law gives borrowers a way out of default and the right to make loan payments they can afford. Since February, Donald Trump and Linda McMahon have blocked these borrowers' path out of default and are now feeding them into the maw of the government debt collection machine. This is cruel, unnecessary, and will further fan the flames of economic chaos for working families across this country." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "With the administration removing any pauses on student loan collections, wage garnishments are going to become common practice for some borrowers. If you receive Social Security benefits and having student loans that have default, know this could be a reality for you moving forward." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "This could be detrimental for some beneficiaries, as the payments may be their primary source of income. Not receiving what was anticipated is disheartening. However, it's important to note that these garnishments were originally paused in 2020 during the COVID-19 pandemic. Now, the garnishments are set to resume, affecting millions of borrowers." What Happens Next The Trump administration is pursuing further reforms to student loan repayment systems and plans to overhaul federal loan programs, as outlined in the One Big Beautiful Bill Act passed by the House of Representatives last month. Additional regulatory and legislative changes may affect how collections and relief are administered in the future, granted this change is just ending what was supposed to be a temporary pause in Social Security garnishment due to the pandemic. "The Trump administration isn't making new changes but rather reinstating policies that were paused in 2020," Thompson said. "At some point, these payments were bound to resume, though many borrowers may have believed their loans would be forgiven under the Biden administration. That forgiveness effort has largely fallen by the wayside, and the Trump administration is now making it clear that all loans must be repaid regardless of whether the institution attended was later deemed predatory."
Newsweek
7 days ago
- Business
- Newsweek
Some Pennies Are Worth Hundreds of Dollars: How to Check Value by Year
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Americans may have pennies worth hundreds of dollars hiding in their piggy banks. Depending on the year, mint and condition, a Lincoln Wheat penny can be valued anywhere from several hundred to even millions of dollars. Why It Matters The U.S. Treasury Department announced this month that it plans to stop manufacturing the penny. However, some of the remaining pennies in your wallet or piggy bank can be worth a significant amount of money if you know what to look for. What To Know Pennies produced from 1905 to 1958 are highly collectible and feature an image of former President Abraham Lincoln on the front, with the reverse side displaying two sheaves of wheat. Depending on their year and mint, they could be worth a fortune. For instance, the 1943-D Lincoln Bronze Wheat Penny is valued at a whopping $2.3 million in uncirculated mint condition. This is because some were produced mistakenly with copper in 1943, making them highly rare. If in less-than-ideal mint condition, the penny could still be worth $100,000 or more. Pennies are displayed at Glenview Coin & Collectibles in Glenview, Illinois, on July 6, 2006. Pennies are displayed at Glenview Coin & Collectibles in Glenview, Illinois, on July 6, find this rare type of penny, look for the 1943 mint year. If you indeed have that year, you may want to consult a coin expert to determine the value of the penny. Other valuable coins include the 1944-S Steel Wheat Penny, estimated to be worth $1.1 million. Only two copies of the San Francisco-minted version of the penny are known to exist. The 1793 Strawberry Leaf Cent, meanwhile, is worth $862,500. There are many free online tools to help you determine the value of your coin. On you can look up the value of a penny based on its year, mint mark, and condition. What People Are Saying Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The good news is you may have some stray pennies in your home that are worth more than a cent. The bad news is the likelihood of them being worth significantly more than a cent are low. Outside of a few variations that are in low will be worth just a tad more than their original value. Michael Ryan, a finance expert and the founder of told Newsweek: "While most wheat pennies are pocket change, the rare ones can buy you a house. A 1943 copper penny recently sold for $840,000. That's a heckuva ROI (return on investment) for something that started as one cent." What Happens Next Beene said it may be worth your time to check spare change and look online for values of the variants you find. "These pennies are normally a [gateway] into collecting, given they aren't too pricey for new buyers, so finding one may create some more change in your piggy bank," he said. Error coins are generally considered jackpots in the coin-collecting world, and low mintage will likely result in higher prices. "Condition is everything," Ryan said. "The difference between a worn coin and mint condition can be $5 versus $50,000."
Newsweek
7 days ago
- Business
- Newsweek
Southwest Checked Bag Fee, Policy: What to Know as Prices Change Tomorrow
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Southwest Airlines has updated its checked bag policy, and passengers will start paying extra tomorrow. Why It Matters Southwest has long allowed passengers to bring a guaranteed free checked bag, but that is changing tomorrow as the airline adopts a new policy. Airlines have faced headwinds in recent years due to larger economic uncertainty. Tariffs, shifting demand and higher jet fuel prices have all forced airlines to make changes to their business models, potentially leading to higher prices for consumers. A Southwest Airlines Boeing 737 taxis at Ronald Reagan Washington National Airport on May 16, 2025 in Arlington, Virginia. A Southwest Airlines Boeing 737 taxis at Ronald Reagan Washington National Airport on May 16, 2025 in Arlington, To Know Southwest Checked Bag Fee Beginning Wednesday, Southwest passengers will no longer get two guaranteed free checked bags when purchasing a flight. That prior rule is disappearing as the airline starts charging fees for checked bags for the first time ever. The first checked bag will cost $35, while the second checked bag will incur a $45 charge for most tickets. Higher costs will apply to overweight and oversized bags. Southwest Baggage Policy Southwest opted to switch its baggage policy as it makes larger business changes. The airline will also no longer allow passengers to self-select their own seats. There will also be added legroom for flyers. How to Still Get Free Bags on Southwest Customers may be able to skirt around the new baggage fee if they qualify for specific perks or rewards under Southwest. That includes Rapid Rewards A-List Preferred Members and customers traveling on Business Select or Choice Extra fares. This will allow you to still get your two free checked bags. Rapid Rewards A-List Members and Rapid Rewards credit card holders also get one free checked bag. What People Are Saying A Southwest spokesperson told Newsweek: "Southwest will be charging $35 for a first checked bag and $45 for a second checked bag (weight and size limits apply) for flights booked or voluntarily changed on or after May 28." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "There's a running joke: if you want to become a millionaire, have a billionaire invest in an airline. I say that tongue in cheek, but it reflects a deeper truth. This industry is going to continue consolidating. Airlines will cut routes, cut costs, and push profitability as far as they can." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "For many longtime Southwest flyers, the changes coming this week seem unfathomable. The airline has for decades prided itself being fee-free when it came to bags as many of its rivals started charging for them years ago... The online chatter was highly negative when the changes were first announced, with many claiming they would abandon Southwest. At the same point, talk doesn't always equate to business. It will be interesting to see if the initial angered feedback results in fewer profits moving forward." What Happens Next In February, Southwest Airlines said it would be laying off 1,750 employees for the first time in 50 years. Thompson said more layoffs and higher prices are likely ahead for the airline industry. "Expect activist investors to push changes the original founders never would've touched. We're already down to a few major carriers and if this trend holds competition will shrink as passengers end up paying more for less," Thompson said.
Newsweek
26-05-2025
- Business
- Newsweek
Rents Drop for Third Consecutive Year After 2022 Peak—Report
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Rents across the U.S. have dropped significantly as affordability in many of America's big cities increased in 2025, according to a report from In April 2025, U.S. median rent dropped 1.7 percent year-over-year, for studio to 2-bedroom properties across the United States' 50 largest metropolitan areas. With a slow but steady decline, median rent is now $60, or 3.4 percent, less than the peak in August 2022. "The [COVID-19] pandemic took everyone in the real estate market by surprise, from landlords to property builders," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "The result was some major cities that saw a surge in new residents moving in didn't have enough housing to meet the demand, sending rents soaring. Now a few years removed, these same metro areas are now dealing with housing availability that more than meets demand and some residents who came during the pandemic returning to their former homes." Why It Matters Landlords often increase rent prices because of inflation and changing housing and rental markets. Last year, roughly one-quarter of American renters said they could no longer afford to pay their rent, according to an Intuit Credit Karma study. Last month's rent-to-income ratio was 23.4 percent for renters earning the typical household income, down from 24.7 percent in April 2024, said. An apartment building on January 31, 2025, in the borough of Brooklyn, New York City. An apartment building on January 31, 2025, in the borough of Brooklyn, New York City. Andrew Lichtenstein/Corbis via Getty Images What To Know The U.S. Department of Housing and Urban Development believes that renters and homeowners should be spending no more than 30 percent of their income on housing. Only five of the top 50 U.S. metros still have a ratio higher than 30 percent median household income, including New York, Los Angeles and Boston. Miami was the least affordable rental market in April, with a median rent for a typical studio to 2-bedroom unit 1.3 times higher than the estimated maximum. Oklahoma City, Austin, Columbus and Raleigh area metros had some of the most affordable rental ratios at less than 20 percent of income. Meanwhile, certain rental-unit sizes have seen bigger drops in prices than others. Studio apartments dropped $27 last month, compared to the same time last year. That's a 1.9 percent decline to $1,410. What People Are Saying Nationwide title and escrow expert Alan Chang told Newsweek: "Between planning, funding, permitting and building, establishing new multi-family rentals takes substantial time and energy that has finally caught up to demand from the 2020-21 spike in demand. Limited supplies of rentals caused an increased rent, now that the inventory finally met the demand levels, the cost of rent can start to normalize, making rentals more affordable in some areas." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Let's be clear, rent 'falling' is all relative. We're coming off a period of runaway inflation, triggered by the pandemic and the economic chaos that followed. Rents shot up too, and anytime that happens there's usually a pullback." "We've now seen 21 straight months of year-over-year rent declines across the 50 largest metros. Sounds good, right? But here's the catch, median rent is still only about $60 lower than the peak we saw back in August 2022. So yes, prices are cooling, but they're not exactly inexpensive." Michael Ryan, a finance expert and the founder of told Newsweek: "It's the first time in at least five years that rent feels manageable at 23 percent of median income. Down here, Miami's still brutal at 40 percent, but most markets? They're in this sweet spot where supply might have finally caught up with demand." What Happens Next It's likely rent prices will continue on a downward trajectory, and the Midwestern markets are leading the shift. "It's natural to see rents start to steadily decline in those markets, particularly in the Midwest, and thus bring the national average down from its highs," Beene said. However, because the progress is slow, Thompson said prices are likely to stay "sticky" and high. "Those expecting prices to return to pre-pandemic levels are mistaken, and this is the new world by which they live," Thompson said. "It is just going to take a larger portion of one's income to rent in this new environment, and as tariffs start to kick in, I would expect those prices to move higher as landlords recoup their insurance and maintenance cost."
Newsweek
23-05-2025
- Business
- Newsweek
A Popular College Major Has One of The Highest Unemployment Rates
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Despite routinely ranking as one of the most popular majors for college students and recent graduates, computer science has one of the highest unemployment rates across all areas of study. Computer science ranked seventh amongst undergraduate majors with the highest unemployment at 6.1 percent, according to the Federal Reserve Bank of New York. "Every kid with a laptop thinks they're the next Zuckerberg, but most can't debug their way out of a paper bag," one expert told Newsweek. Why It Matters In recent years, demand for computer science majors grew as a result of the tech boom during the COVID-19 pandemic. However, as major companies like Amazon and Google have laid off thousands of workers to boost profits, the major has lost some of its appeal in the job market. New York University graduates celebrate during commencement ceremonies in Washington Square Park May 10, 2007, in New York City. New York University graduates celebrate during commencement ceremonies in Washington Square Park May 10, 2007, in New York To Know Despite computer science being ranked as number one by the Princeton Review for college majors, the tech industry may not be living up to graduates' expectations. When it came to undergraduate majors with the highest unemployment rates, computer science came in at number seven, even amid its relative popularity. The major saw an unemployment rate of 6.1 percent, just under those top majors like physics and anthropology, which had rates of 7.8 and 9.4 percent respectively. Computer engineering, which at many schools is the same as computer science, had a 7.5 percent unemployment rate, calling into question the job market many computer science graduates are entering. On the other hand, majors like nutrition sciences, construction services and civil engineering had some of the lowest unemployment rates, hovering between 1 percent to as low as 0.4 percent. This data was based on The New York Fed's report, which looked at Census data from 2023 and unemployment rates of recent college graduates. Unemployment among recent graduates more broadly is increasing, with the number of Gen Z households receiving unemployment climbing by 32 percent year over year in February. Meanwhile, the unemployment rate for recent college graduates went up to 5.8 percent in March from 4.6 percent last year, according to the Federal Reserve Bank of New York. What People Are Saying Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Seeing such a high unemployment rate for majors like computer science may stun many Americans. After all, it's been one of the most encouraged majors in recent years due to the unprecedented need in the field by many businesses." "However, an abundance of those who major in a field doesn't necessarily create more talent, and as many companies have developed more complex needs, they often want employees more skilled with a proven track record of success. As a result, some new graduates may find it more difficult than expected to obtain a job, especially in our current environment where some employers are scaling back." HR consultant Bryan Driscoll told Newsweek: "Computer science majors have long been sold a dream that doesn't match reality. Pick the 'right' major, work hard, and you'll land a stable, high-paying job. But just like many majors and related jobs, the reality hits hard - too many grads, not enough jobs, crippling student debt, and a market that rewards pedigree over potential." Michael Ryan, a finance expert and the founder of told Newsweek: "Every kid with a laptop thinks they're the next Zuckerberg, but most can't debug their way out of a paper bag... We created a gold rush mentality around coding right as the gold ran out. Companies are cutting engineering budgets by 40 percent while CS enrollment hits record highs. It's basic economics. Flood the market, crater the wages." What Happens Next For many computer science roles, you'll have tens of thousands of graduates chasing the job, which now demands years of experience, an impressive GitHub and the ability to work for low pay, Driscoll said. "The problem is the system. We've overproduced degrees without addressing how exploitative and gatekept the tech hiring pipeline has become," Driscoll said. "Entry-level roles are vanishing, unpaid internships are still rampant, and companies are offshoring or automating the very jobs these grads trained for."
