Latest news with #CBSMoneyWatch
Yahoo
3 days ago
- Business
- Yahoo
Social Security garnishment for defaulted student loans is paused
The Trump administration says it's pausing the garnishment of Social Security benefits for student loan borrowers who have defaulted. That means a temporary pause on a decision announced in April to restart collections on student loans in default. On May 5, the restart policy was put into action when the Education Department began involuntary collections through the Treasury Department's offset program, which claws back overdue debts by garnishing federal payments such as tax refunds and Social Security checks. The halt comes after the Trump administration last month retreated from another type of Social Security benefit clawback, when it announced it would only take 50% of a person's monthly check to recover overpayments, down from a previously announced 100%. In that case, advocates for senior citizens had expressed concern that the policy would lead to hardship, given that one-third of Social Security recipients rely on their monthly benefit check for at least 75% of their income. In a statement emailed to CBS MoneyWatch, the Education Department said it hasn't offset any Social Security payments because of student debt since it resumed collections on May 5. The department "has put a pause on any future Social Security offsets," spokeswoman Ellen Keast said in the email. She added, "The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income. In the coming weeks, the Department will begin proactive outreach to recipients about affordable loan repayment options and help them back into good standing." While most people may think of student borrowers as recent grads who are juggling loan repayments with other living expenses, there are about 3.6 million people over 60 who carry student loan debt, according to Bankrate. About 452,000 people over 62 — the earliest age when one can collect Social Security benefits — have defaulted on their student loans, the Consumer Financial Protection Bureau said earlier this year. January 6 defendant refuses Trump's pardon Everything we know about the Boulder attack on Israeli hostage march Murphy presses McMahon on canceled mental health program, Harvard demands
Yahoo
28-05-2025
- Business
- Yahoo
Do you have the top predictor for financial well-being? Here's what the
It doesn't take $1 million to achieve the top predictor of financial well-being, according to new research from investment firm Vanguard. Instead, it's something far more attainable: Socking away at least $2,000 in an emergency savings account. People with at least $2,000 saved for an unexpected expense report a greater improvement in financial well-being than those who have incomes of more than $500,000 or assets of more than $1 million, the survey of more than 12,000 Vanguard investors found. The findings come as many Americans are feeling more financially stressed, with a separate study from Primerica finding that about half of middle-class households expect to be worse off financially in 2026, almost double the share in December, due to worries about the cost of living and the economy. Taking small steps to build an emergency savings account could prove to help alleviate financial anxiety, noted Paulo Costa, a behavioral economist and certified financial planner at Vanguard who co-authored the research. "What's so powerful about this research is that it's not about gathering a lot of money to have that peace of mind," Costa told CBS MoneyWatch. "That initial $2,000 makes a big difference." While it may seem that having $1 million in assets should boost financial well-being more than $2,000 in a savings account, the results show the importance of being prepared for an unplanned expense, Costa added. The median cost of an emergency is about $2,000, which means having that cash on hand gives people the confidence that they can handle a sudden money stressor, he said. "When is $2,000 more than a million dollars? It's when it comes to emergency savings," Costa said. "The point of emergency savings is to have that money readily available if you need it. A lot of people have money, for example, in retirement accounts that may have some requirements about when you can withdraw that money and may have some tax consequences and some penalties." Retirement assets are generally not readily available to cover unexpected expenses, with people younger than 59 1/2 incurring a 10% penalty for taking out money. But having $2,000 set aside in a bank account means that you've got the peace of mind that you'll be able to handle a surprise car repair or medical bill. And people with $2,000 in emergency savings typically spend about 2 hours less each week thinking about their finances versus those without any savings, the study found. How many people can handle emergency expenses? To be sure, obtaining $2,000 in savings could prove out of reach for many Americans, especially those who are low income, struggling with debt or who reside in an area with a high cost of living. Vanguard's survey includes only people who have investment accounts at the company, which signals they access to 401(k)s and other types of investment accounts that many Americans lack. Almost 4 in 10 Americans say they don't have the cash on hand to pay for an $400 emergency expense, according to research from the Federal Reserve. Still, more Americans appear to be socking away money for a rainy day, with the Primerica study finding that 64% of those surveyed in March said they had an emergency fund of at least $1,000, up from 58% two years earlier. Even if saving $2,000 seems out of reach, you can start small by saving as little as $10 week, Costa said. The best idea is to find a strategy that works for you, whether that's budgeting or automating savings by directing a certain amount into a dedicated account with each paycheck, he said. "I love the idea of, 'out of sight, out of mind,' so when you get paid, you immediately send money to your savings account," he said. "By saving $50 per week, you will build up to $2,000 in less than a year." He added, "Saving something is better than saving nothing. So just getting started, that really makes a big difference." Trump delivers Memorial Day remarks at Arlington National Cemetery SpaceX loses contact with its Starship, spins out of control Elon Musk says Trump's "big, beautiful bill" undermines work of DOGE team 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
Yahoo
27-05-2025
- Business
- Yahoo
Rising number of college grads are unemployed, new research shows
Recent college graduates are having a harder time finding work, despite their higher education degrees, which usually give job-seekers a leg up in the labor market. That's according to a new report from Oxford Economics which shows that unemployed recent college grads account for 12% of an 85% rise in the national unemployment rate since mid-2023. That's a high number, given that this cohort only makes up 5% of the total labor force. What's more, the rate of unemployment among workers, ages 22 and 27, who have recently graduated from college, is nearing 6% —which is above the national unemployment rate of 4.2%. "People who have obtained a bachelor's degree or higher have a higher unemployment rate than national average, and this is the first time this has happened in the last 45 years of data," Matthew Martin, senior U.S. economist at Oxford Economics, told CBS MoneyWatch. That's noteworthy, he said, because "those with higher educational attainment usually have better prospects overall than their peer with less." So why are recent college grads are having a tougher time finding work post-college than previous graduating classes did? While the report points to a couple of factors, it finds that much of the rising rate is being driven by industries where employers are slowing hiring. "The rise in the recent graduate unemployment rate is largely part of a mismatch between an oversupply of recent graduates in fields where business demand has waned," according to the report. That holds especially true in the tech industry, as more college students graduate with degrees in computer science and related fields than any other major. "Prospects for employment will remain minimal for these individuals, keeping the unemployment rate elevated in the near term," Oxford Economics researchers wrote in the report. Tech sector-centric Computer science is among the fastest-growing fields of study among undergrads, according to the National Center for Education Statistics, but jobs in the sector are particularly vulnerable to replacement by automation. Recent advances in artificial intelligence also expose workers in the field to being rendered obsolete. "There's a mismatch between business demand and the labor supply overall," Martin said. "And it's very concentrated in the technology sector." The industry hired at a fast clip when the economy reopened post-pandemic, before pulling back. Those cuts are likely still affecting the current unemployment rate, according to Martin. "Some of it could be a normalization after the tech sector's hiring surge at the end of the pandemic around 2021," he said. "But there's also evidence that AI is starting to impact lower-level computer science gigs," he added. Experienced workers who graduated with computer science degrees but have racked up more than a few years of experience are faring fine, noted Martin. It's those who do the kind of lower-level, rote work that AI is already adept at, who are seeing a mismatch between the number of jobs available and the supply of workers seeking them. "Some of it might be businesses being productive with the workers they have and not wanting to increase costs overall by hiring. It could also be higher adoption rates of AI," Martin said. "At the moment, it looks to be a bit of both." Uncertainty slows hiring Economic uncertainty, driven largely by President Trump's aggressive, yet ever-changing tariff agenda, is also leading a number of businesses to press pause on growth and investment. Because of this, the unemployment rate among recent college graduates could continue to inch upward, according to Martin. "We are heading into a period where uncertainty is really high; the impact of tariffs is starting to bleed through, and businesses are facing higher input costs," he said. Although recent college graduates who have secured employment aren't being laid off at higher rates than the rest of the workforce, Martin doesn't expect things to get easier for young graduates on the hunt for employment, absent a surge in hiring by tech companies or mass exodus of workers from the labor force. "There is some softening in demand overall, but a lot of it is concentrated at the moment in recent college graduates, and we are looking for the unemployment rate to rise," he said. The "underemployment" effect When qualified workers with college degrees try and fail to find work in their desired field, they tend to continue seeking work, sometimes looking for a job in another sector, as opposed to withdrawing from the labor force, the report notes. That can lead t college-educated workers finding themselves "underemployed," or in roles where 50% of the workers who occupy them do not have a bachelor's degree or higher. This scenario can doom them for years to come: Underemployed workers tend to remain so for the rest of their careers, according to a report. Trump delivers Memorial Day remarks at Arlington National Cemetery Trump reverses course on EU tariffs; Republicans eye sanctions on Russia SpaceX readies 9th Starship test flight after last 2 broke apart
CBS News
27-05-2025
- Business
- CBS News
Rising number of college grads are unemployed, new research shows
Recent college graduates are having a harder time finding work, despite their higher education degrees, which usually give job-seekers a leg up in the labor market. That's according to a new report from Oxford Economics which shows that unemployed recent college grads account for 12% of an 85% rise in the national unemployment rate since mid-2023. That's a high number, given that this cohort only makes up 5% of the total labor force. What's more, the rate of unemployment among workers, ages 22 and 27, who have recently graduated from college, is nearing 6% —which is above the national unemployment rate of 4.2%. "People who have obtained a bachelor's degree or higher have a higher unemployment rate than national average, and this is the first time this has happened in the last 45 years of data," Matthew Martin, senior U.S. economist at Oxford Economics, told CBS MoneyWatch. That's noteworthy, he said, because "those with higher educational attainment usually have better prospects overall than their peer with less." So why are recent college grads are having a tougher time finding work post-college than previous graduating classes did? While the report points to a couple of factors, it finds that much of the rising rate is being driven by industries where employers are slowing hiring. "The rise in the recent graduate unemployment rate is largely part of a mismatch between an oversupply of recent graduates in fields where business demand has waned," according to the report. That holds especially true in the tech industry, as more college students graduate with degrees in computer science and related fields than any other major. "Prospects for employment will remain minimal for these individuals, keeping the unemployment rate elevated in the near term," Oxford Economics researchers wrote in the report. Tech sector-centric Computer science is among the fastest-growing fields of study among undergrads, according to the National Center for Education Statistics, but jobs in the sector are particularly vulnerable to replacement by automation. Recent advances in artificial intelligence also expose workers in the field to being rendered obsolete. "There's a mismatch between business demand and the labor supply overall," Martin said. "And it's very concentrated in the technology sector." The industry hired at a fast clip when the economy reopened post-pandemic, before pulling back. Those cuts are likely still affecting the current unemployment rate, according to Martin. "Some of it could be a normalization after the tech sector's hiring surge at the end of the pandemic around 2021," he said. "But there's also evidence that AI is starting to impact lower-level computer science gigs," he added. Experienced workers who graduated with computer science degrees but have racked up more than a few years of experience are faring fine, noted Martin. It's those who do the kind of lower-level, rote work that AI is already adept at, who are seeing a mismatch between the number of jobs available and the supply of workers seeking them. "Some of it might be businesses being productive with the workers they have and not wanting to increase costs overall by hiring. It could also be higher adoption rates of AI," Martin said. "At the moment, it looks to be a bit of both." Uncertainty slows hiring Economic uncertainty, driven largely by President Trump's aggressive, yet ever-changing tariff agenda, is also leading a number of businesses to press pause on growth and investment. Because of this, the unemployment rate among recent college graduates could continue to inch upward, according to Martin. "We are heading into a period where uncertainty is really high; the impact of tariffs is starting to bleed through, and businesses are facing higher input costs," he said. Although recent college graduates who have secured employment aren't being laid off at higher rates than the rest of the workforce, Martin doesn't expect things to get easier for young graduates on the hunt for employment, absent a surge in hiring by tech companies or mass exodus of workers from the labor force. "There is some softening in demand overall, but a lot of it is concentrated at the moment in recent college graduates, and we are looking for the unemployment rate to rise," he said. The "underemployment" effect When qualified workers with college degrees try and fail to find work in their desired field, they tend to continue seeking work, sometimes looking for a job in another sector, as opposed to withdrawing from the labor force, the report notes. That can lead t college-educated workers finding themselves "underemployed," or in roles where 50% of the workers who occupy them do not have a bachelor's degree or higher. This scenario can doom them for years to come: Underemployed workers tend to remain so for the rest of their careers, according to a report.
Yahoo
22-05-2025
- Business
- Yahoo
Nike to hike prices on certain products as part of seasonal adjustment
Nike will raise prices for some of the sporting goods maker's shoes, clothing and equipment starting this week, according to a person familiar with the matter. The price hikes will affect only certain products and are part of a seasonal adjustment, they said. Nike footwear priced between $100 and $150 will see increases of up to $5, while items priced at $150 or higher will see hikes of up to $10. Nike will also raise apparel and equipment prices by $2 to $10. Among the most popular items impacted will be Air Jordan-brand shoes, which range from $100 to $275 a pair for adult styles, Nike's website site shows. "We regularly evaluate our business and make pricing adjustments as part of our seasonal planning," Nike said in statement shared with CBS MoneyWatch. Prices for Nike Air Force 1s, the company's best-selling shoe, according will remain the same. The shoes retail online for $115. Nike children's footwear, products under $100 and Jordan apparel and accessories will also be exempt from price hikes, the person familiar with the matter said. Nike sent letters to wholesalers that sell Nike products this week to inform them about the price changes. Dick's Sporting Goods, DSW, Footlocker and Kohl's are among the major retail chains that carry Nike items in their stores. Share prices for the athletic apparel company were up 1.9% in early morning trading. In its last earnings report in March, Nike said its earnings were down 9% compared with the year prior. Nike is slated to release fourth quarter earnings on June 26. Nike is not the only shoe brand whose customers might encounter price changes. German-based company Adidas hinted earlier this month that it would also increase prices in its U.S. market if tariffs remain in place. Nike, which is headquartered in Oregon, makes nearly half of its products in Vietnam and China, according to a map on the company's website. The company did not mention tariffs as a reason for its price increases. Direct sales on Amazon Nike will also begin selling its shoes directly on Amazon for the first time since 2019. Upon the brand's return, smaller sellers on the platform will be forced to cease sales of Nike products by July 19. "While independent sellers have listed some Nike inventory in our store for many years, Amazon will soon begin sourcing a much wider range of Nike products directly to expand our selection for U.S. customers," the Amazon spokesperson said. "We value independent sellers, and we're providing an extended period of time for the small number of sellers affected to sell through their inventory of overlapping items," the source added. Trump confronts South African president during White House meeting, repeats genocide claims Trump takes questions during meeting with South African president Rubio, Jayapal have fiery exchange about Afrikaner refugee's antisemitic tweet, student visas Sign in to access your portfolio
