Latest news with #RAP
GMA Network
4 days ago
- Business
- GMA Network
Outgoing ERC chief sees ‘more room' to lower power rates
Outgoing Energy Regulatory Commission (ERC) chairman and chief executive officer Monalisa Dimalanta said 'I believe we can still lower electricity rates further throughout the country as we continue to conduct our fuel audits for electric cooperatives and distribution utilities.' Outgoing Energy Regulatory Commission (ERC) chairman and chief executive officer Monalisa Dimalanta, whose term ends on August 8, on Friday said more work needs to be done in the country's electricity sector as she sees more room for costs to be lowered for the benefit of consumers. In an online press chat, Dimalanta was asked what legacy she will be leaving behind as chief of the power industry regulator. 'Starting January 2023, the generation charge to customers in the WESM (Wholesale Electricity Spot Market) was trending lower. This year, from January until May, we saw a significant lowering of rates in most regions in the country, except Region 2… as more energy projects came in. This has been the lowest generation rate in the last 10 years,' she said. Data from the ERC showed that between January and May this year, the overall reduction in the average generation cost at P2.4 per kilowatt-hour corresponded with the decrease in the country-wide average electricity price also at P2.4 per kWh. 'I think the legacy I'm leaving is a state of a better market condition, but improvements are still needed," Dimalanta said. The outgoing ERC chief added that 'I believe we can still lower electricity rates further throughout the country as we continue to conduct our fuel audits for electric cooperatives and distribution utilities.' Dimalanta was referring to the show cause orders the ERC issued to 37 generation companies to explain their failure to comply with its directive to submit complete fuel purchase documents. The submission of fuel purchase documents was necessary in validating the reasonableness of generation charges being passed on to consumers. Dimalanta said that once the fuel purchase audit among nearly 40 generation firms is finished, consumers could expect a refund or lowering of electricity rates. 'There is more room for lowering of the rates if everybody is disciplined in following our respective mandates,' she said. The outgoing ERC chief said the regulator is targeting to finish the fuel purchase audit 'by the end of the year.' Dimalanta is also optimistic on the Retail Aggregation Program (RAP). Under RAP, two or more electricity end-users within a contiguous area — or within the same boundaries in which electricity supply can be measured with metering devices — to combine into a single 'contestable customer' allowing them to choose their own electricity supplier to ensure transparent and reasonable pricing. 'I hope this is something that will really become widespread,' Dimalanta said. 'EPIRA mandated that this happens, that this power to choose should be realized,' she said. Dimalanta resigned as chairperson of the ERC, cutting short her seven-year tenure, in relation to President Ferdinand Marcos Jr.'s post-midterm polls executive revamp. She will be replaced by Atty. Francis Saturnino Juan, who previously served as executive director and general counsel of the ERC and currently as President of the Independent Electricity Market Operator of the Philippines. — BAP, GMA Integrated News
CNBC
5 days ago
- Business
- CNBC
Student loan borrowers may be left with 'no affordable options' under Trump plan changes, advocate says
As the Trump administration overhauls the federal student loan repayment system, borrowers may soon find it difficult to keep up with their monthly payments, consumer advocates said. The SAVE, or Saving on a Valuable Education, plan, touted by the Biden administration as the most affordable repayment program ever, is now defunct. President Donald Trump's "big beautiful bill" phases out several other income-driven repayment plans, which were aimed at making payments manageable for student loan holders. "In many instances, borrowers will be left with no affordable options, increasing the risk of default," said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York City. The U.S. Department of Education did not immediately respond to a request for comment. Here are the biggest changes to federal student loan repayment under Trump, so far. The Biden administration rolled out the SAVE plan in summer 2023. The repayment plan's terms were the most generous to date; under the program's rules, many borrowers' monthly bills would have dropped by as much as half. But just as many of the plan's benefits were going into effect, Republican-led legal challenges blocked the program. Unlike the Biden administration, Trump officials have not fought in the courts to preserve SAVE, and recently Congress repealed the plan altogether. More from Personal Finance:Trump's 'big beautiful bill' slashes CFPB funding78% say Trump's tariffs will make it harder to deal with debtTax changes under Trump's 'big beautiful bill' — in one chart The Education Department announced on July 9 that the interest-free payment pause that the Biden administration had enrolled SAVE borrowers in during the legal challenges will expire on Aug.1. Secretary of Education Linda McMahon said in a statement that borrowers in SAVE should "quickly transition to a legally compliant repayment plan — such as the Income-Based Repayment Plan." But under the other existing repayment plans, borrowers will see their bills "jump up unexpectedly," said Malissa Giles, a consumer bankruptcy attorney in Virginia. "I cannot imagine the stress that will be put on folks," she said. Higher education expert Mark Kantrowitz said, "We can expect payments under IBR to be more than double payments under SAVE." Under Trump's "big beautiful bill," borrowers who take out federal student loans after July 1, 2026, will have just two repayment plans to choose from, compared with roughly a dozen options now. Existing borrowers will maintain access to other repayment options. New student loan borrowers could enroll in either a standard repayment plan with fixed payments or a single income-based repayment plan: the "Repayment Assistance Plan," or RAP. Preston Cooper, a senior fellow at the conservative policy research organization American Enterprise Institute, wrote in a recent blog post that "scheduled monthly payments under RAP are significantly higher than those under the Biden administration's SAVE plan for borrowers of the same income levels." Cooper provided an example of a borrower who earns $80,000 per year: their monthly bill under RAP will be $533, whereas it would be $179 with SAVE, he wrote. "The student borrowers for whom the SAVE plan was the only affordable option will be severely impacted by these changes," said Nierman, of the Education Debt Consumer Assistance Program.
Yahoo
5 days ago
- Business
- Yahoo
What to know about your evolving federal student loan repayment options
The most important thing to know about changes to federal student loan repayment plans is that while they won't arrive overnight, they will be thunderous. Passed in July as part of the One Big Beautiful Bill Act, these provisions will have the most significant impact on students and families borrowing federal loans on or after July 1, 2026. Fortunately, if you're already in repayment on government-held education debt, you get a three-year on-ramp into the new repayment plan options. Takeaway: You can keep your current federal loan repayment plan until at least July 1, 2028. Plans available to borrowers already in repayment Plans for new loans borrowed before July 2026 Plans for new loans borrowed after July 2026 StandardGraduatedExtendedIncome-Based (IBR)Income-Contingent (ICR)Pay As You Earn (PAYE)Saving on a Valuable Education (SAVE, not accepting new borrowers) Standard (modified)Repayment Assistance Plan (RAP)IBR Standard (modified)RAP With that said, the new RAP and standard plans differ from your current options and there's a lot of fine print. Let's start sifting. 1. Current borrowers have nearly three years to switch plans Before the legislation passed both chambers of Congress, the Senate Parliamentarian ruled that limiting current borrowers' options to the new Standard Repayment Plan and RAP fell outside the budget reconciliation process and would be subject to a 60-member vote in the Senate. As a result, current borrowers will also have the option of IBR — and won't have to worry about switching from an expiring plan until mid-2028. What about SAVE Plan borrowers? The Big Beautiful Bill repeals SAVE and requires the Education Department to move its borrowers to another repayment plan by 2028, but that doesn't mean these SAVE enrollees will continue to enjoy an interest-free forbearance. In fact, the Department announced on July 9 that interest charges will resume for SAVE borrowers in August. 2. You could lose access to older plans by consolidating As former Federal Student Aid director Colleen Campbell wrote for her Substack, On Detail, there's one serious pitfall for borrowers who'd prefer to hang onto their expiring plans or IBR. If you take out a federal Direct Consolidation Loan on or after July 1, 2026 (to consolidate multiple federal loans with the Education Department), you'll be limited to the new standard and RAP options. 3. Unfortunately, Parent PLUS Loan borrowers aren't eligible for RAP If you're a mom or dad who borrowed on behalf of your child, your repayment plan menu will soon be even shorter. Parent PLUS Loan borrowers currently on ICR Parent PLUS Loan borrowers NOT currently on ICR You'll transition to IBR You'll be limited to the new Standard plan Student loan lawyer Stanley Tate says he has been advising his clients on a workaround: Consolidate into the ICR plan before July 2026 to build in future flexibility. 4. There's a higher minimum monthly payment on RAP If you've already utilized income-driven repayment plans, you might know that your monthly payment could be as low as $0. After all, it's derived as a percentage of your discretionary income, and if your income falls precipitously, so too does your payment obligation. But under RAP's adjusted gross income (AGI) formula, you'd always owe at least $10 per month or $120 per year. Adjusted gross income (AGI) Monthly payment Up to $10,000 $10 $10,001 to $20,000 1% of AGI $20,001 to 2% of AGI $30,001 to 3% of AGI $40,001 to 4% of AGI $50,001 to 5% of AGI $60,001 to 6% of AGI $70,001 to 7% of AGI $80,001 to 8% of AGI $90,001 to 9% of AGI $100,001 and up 10% of AGI What's my AGI? You can find your adjusted gross income on your tax return — look for line 11 on your Form 1040. Your AGI is calculated by adding all of your sources of income and then subtracting certain above-the-line tax deductions, including student loan interest, educator expenses and IRA and HSA contributions. 5. Given the switch to AGI, your RAP payment could become less affordable over time Student loan lawyer Stanley Tate is among experts who fault RAP for not accounting for the increasing cost of living. Under IBR, for example, your monthly payment equates to 15 percent of your discretionary income — defined by the Education Department as 'the difference between your annual income and 150 percent of the poverty guideline for your family size and state of residence.' Under RAP, however, your dues would simply equal up to 10 percent of your AGI. Your payments may become less affordable over time, as AGI doesn't account for increases in your cost of living. Imagine moving from Idaho to California, for example, or inflation rearing its ugly head again. Another potential unintended consequence of RAP's seemingly oversimplified formula: As fellow student loan lawyer Adam Minsky has written, your monthly payment could jump dramatically if you earn a modest raise or pick up a side hustle that pushes you up into the next $10,000 bracket (see No. 4, above). 6. Your monthly payments could increase under the new plans A mid-June Student Borrower Protection Center analysis estimated that some borrowers will see their monthly dues spike on RAP as compared to currently available IDR plans. To be fair, RAP, which coincidentally borrows its name from a plan used by borrowers in Canada, could also result in a lower monthly payment depending on the plan you're coming from and other circumstances. Keep an eye on the Loan Simulator RAP and the modified standard plan are at least a year away from rolling out. Here's hoping the Education Department wastes little time in adding them as options to consider in the Loan Simulator available at This helpful tool allows you to input your loan details (or have them uploaded automatically by logging in with your FSA ID) and view your monthly and overall costs under each plan. Given the massive changes coming, this tool will be more helpful than ever. 7. Your RAP payment amount could decrease by $50 per month for each dependent on your tax return On its face, that might sound significant, particularly if you have a large family. But the net benefit might not be as large as you think, particularly if you'll be moving to RAP from an existing IDR plan. That's because IDR accounted for a broader definition of your family size when calculating your monthly payment. It termed anyone as a dependent if you provided 'more than half of their support.' Tate offers the examples of cohabitating and supporting your elderly parents, or your domestic partner and their children (from a previous relationship): You'd get 'credit' for this family situation on IDR, but not on RAP. 'We're not honoring these dynamic family environments,' says Tate. He adds: 'And so it leaves you with less money to pay toward those things because your student loan payment is higher — it doesn't accurately reflect your responsibilities.' 8. Speaking of subsidies, RAP removes negative amortization In plain English: Your monthly RAP dues are applied to your interest, fees and principal balance (in that order). And if your minimum payment doesn't cover the interest, the remaining interest will be forgiven instead of being tacked onto your balance. This feature, ironically piloted in the soon-to-be-obsolete SAVE Plan that conservative politicians have rallied against, is a big win for borrowers. The hope is that removing the capitalization of unpaid interest prevents runaway balances and gives you a better chance to pay down your balance over time. 9. The new plans are eligible for Public Service Loan Forgiveness (PSLF) PSLF is likely to change, as the Education Department concluded a negotiating rulemaking process on July 2. However, the modified Standard and RAP plans are eligible if you're pursuing relief related to your qualifying government or nonprofit employment. The Big Beautiful Bill's only narrowing of eligibility adversely affects doctors and dentists, who will no longer be able to count residencies toward their PSLF progress. 10. RAP-related loan forgiveness takes five years longer to achieve If you're on an IDR plan working toward forgiveness, you might have been expecting a clean slate after 20 or 25 years (depending on your plan). With RAP, it's 30 years, which student aid expert Mark Kantrowitz has compared to 'indentured servitude.' Repayment plan Forgiveness after (years) IBR (borrowed before July 2014) 20 IBR (borrowed after July 2014) 25 ICR 25 PAYE 20 RAP 30 Plus, like with other federal loan relief programs, the fine print has footnotes. For example, as Campbell has written, it'll be up to the Education Department to determine what constitutes qualifying payments for relief over the 30-year term. What about tax on RAP-related forgiveness? In a defeat for borrowers seeking IDR-related forgiveness, the BBB doesn't extend an existing provision that makes such relief tax-free after 2025. That means if your balance is wiped away on RAP (or another IDR plan before 2028), you'll likely be subject to federal income tax on the forgiven amount. That is, unless other student loan legislation comes to the rescue. 11. But if RAP works, you could be out of debt faster The conservative response to the complaints about the '30-year debt trap' of RAP is to shift away from what Preston Cooper, a senior fellow for a right-leaning think tank, calls a 'forgiveness-driven approach.' 'By frontloading assistance — borrowers get help paying down principal immediately [via subsidies], rather than waiting around for forgiveness — it aims to help borrowers retire their debts faster,' Cooper wrote for the American Enterprise Institute in May. Cooper makes the argument, based on his own math, that borrowers will zero their balances faster under RAP. (Of course, they might also be forced to make higher monthly payments, as mentioned in No. 4, above.) Read more: What lessons can be learned from offering massive student loan forgiveness? 12. You could switch from RAP to the new Standard plan at a later date Jason Delisle, most recently of the Urban Institute, described an earlier version of the bill's RAP as a 'roach motel,' because 'you go in, and you can never check out.' Fortunately, the roaches have relocated. Under the bill that's now become law, you can switch between the two plans as needed. However, Campbell has estimated that it might only make sense to transition between plans if you experience significant changes in your debt-to-income ratio. 13. The new standard plan is the new default If RAP or IBR isn't your best option come 2026 (for new loans) or 2028 (current loans) — or perhaps you don't select a plan at all — you'll be automatically enrolled in the new Standard Repayment Plan. Starting in July 2026, the standard plan resembles the Extended Repayment Plan that has long existed. Your term length depends on your loan amount, though you could always make extra, perhaps biweekly, payments to pay off your balance over a shorter period. New standard Old standard Loan amount Term (years) Loan amount Term (years) Under $25,000 10 Any 10 $25,000 to $50,000 15 $50,000 to $100,000 20 Over $100,000 25 What's your next step? Fortunately for borrowers who already have federal student loans, the biggest impacts of the Big Beautiful Bill won't hit immediately. The RAP and new Standard plan won't even be available until July 2026. And we can already start to imagine potential rollout difficulties and delays. So the best advice from this certified student loan counselor is this: Keep on keeping on. By that, we mean: Open and maintain communication lines with your federal loan servicer. If your finances are on solid footing, consider tips for paying off student loans fast. If you're vulnerable or concerned you will soon be, reach out to organizations that offer student loan help. And stay informed (but not stressed) by consuming our student loan news. 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
Daily Mail
14-07-2025
- Business
- Daily Mail
Netherlands RATIONS electricity as country struggles to cope with turning away from gas as part of green policies - as expert warns Britain is also 'in trouble'
The Netherlands is rationing electricity as its overloaded power grid buckles under the pressure of rapid electrification and ambitious climate goals. More than 11,900 businesses are stuck in a queue for access to the network, alongside public buildings including hospitals, schools and fire stations. Thousands of new homes are also waiting to be connected, with some areas warned they may have to wait until the 2030s. The crisis has emerged as the country scrambles to cut carbon emissions. And now experts are warning that Britain, as well as Belgium and Germany, are all 'in trouble.' The countries should 'definitely' see what is happening in the Netherlands as a warning, says Zsuzsanna Pató, from Brussels-based energy think tank RAP. After shutting down production at the massive Groningen gas field last year, the Dutch government has pushed a fast transition to electric heating, solar power and battery storage. But the national grid has failed to keep pace, creating widespread bottlenecks and driving up costs. Officials estimate €200 billion will be needed by 2040 to expand grid capacity. Electricity prices are already among the highest in Western Europe, and Dutch households face yearly tariff increases of up to 4.7 percent for at least the next decade. To ease demand, operators are offering cheaper contracts for off-peak usage and telling major industries they may need to shut off entirely for several hours a day. A national ad campaign is urging the public to avoid charging e-bikes and electric cars between 4pm and 9pm, when the grid is under the most strain. The Netherlands has been one of Europe's most aggressive adopters of green policies, aiming to cut emissions in half by 2030. The shortage has alarmed local leaders, who say businesses are already pulling out of investment plans. In Brainport, the high-tech southern region that is home to semiconductor giant ASML, mayor Jeroen Dijsselbloem says no new grid capacity will arrive before 2027. He said: 'Everything is going electric and electricity infrastructure needs to grow massively. We need more than 100 medium substations and 4,000 small ones.' Although the Netherlands is one of the worst-hit, Spain has already experienced major power blackouts earlier this year, after its own grid came under pressure during peak demand. Thousands of people and many organisations were brought to a standstill shortly after midday on April 28 when the country was disconnected from the European electricity grid for hours. Britain itself faced electricity rationing in the 1970s during the coal miners' strikes, when lights were turned off and businesses forced to work a three-day week. For more than two months, many homes were forced to burn candles and look for alternative means of electricity. In the Netherlands, some companies are now trying to solve the problem themselves. American medical firm Thermo Fisher, which has a large base near Eindhoven, is investing in battery storage and rooftop solar to avoid delays. Others are working with local authorities to build shared 'energy hubs' that allow businesses to pool grid access. But grid operators say they are also facing a shortage of 28,000 trained technicians, slowing down efforts to install the infrastructure needed. Residents have been urged not to charge electric vehicles and cars between 4pm and 9pm For now, officials are looking at ways to squeeze more out of the grid without risking blackouts. Despite the alarming report, officials close to the situation have tried to downplay its effect with one saying: 'It's nowhere near as bad anywhere else.'
Newsweek
11-07-2025
- Business
- Newsweek
Florida Makes Major Change to Insurance Industry: What To Know
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. Governor Ron DeSantis signed Florida House Bill 5013 into law earlier this month, terminating one state-funded reinsurance program and substantially cutting funding for a second. Newsweek contacted DeSantis' press office for comment on Friday via email outside regular office hours. Why It Matters In 2022, the Reinsurance to Assist Policyholders (RAP) program was created in Florida with taxpayer funding to reimburse insurers for losses related to hurricanes, providing additional funding for the Florida Hurricane Catastrophe Fund. Securing insurance in Florida and other states impacted by extreme weather has become a major issue for many property owners, with premiums surging in recent years. A reduction in state support for the reinsurance market could result in a greater reliance on private companies, potentially causing premiums to increase. Florida Governor Ron DeSantis speaks during a press conference on April 10, 2025, in Miami. Florida Governor Ron DeSantis speaks during a press conference on April 10, 2025, in Miami. Joe Raedle/GETTY What To Know Florida House Bill 5013 reduces RAP program funding by $900 million and also repeals the legislation that created the Florida Operational Reinsurance Assistance Program (FORA), which received an additional $1 billion to cover reinsurance claims. Initially, RAP was supposed to last for only two years, but the plan was extended after Hurricane Ian caused extensive property damage in 2022. A report from industry publication ReInsurance Business found that payments under the RAP did not meet initial expectations. The 2022 Hurricane Nicole did not result in RAP disbursements because of threshold limits, while Hurricane Idalia in 2023 led to only $15 million being transferred, freeing up additional capital that is now being returned to the general state revenue. By comparison, after Hurricane Ian, $800 million was transferred into the RAP, with the State Board of Administration forecasting that about 50 companies would receive full payouts from the plan. The summary of Florida House Bill 5013 states: "HB 5013 reduces, from $2 billion to $900 million, the General Revenue (GR) Fund transfers authorized under the Reinsurance to Assist Policyholders (RAP) Program to reimburse eligible insurers for covered losses. The bill repeals the Florida Optional Reinsurance Assistance (FORA) Program, including $1 billion of authorized General Revenue Fund transfers that are available under the program to reimburse eligible insurers for covered losses. "By reducing the cap for transfers to the RAP program and repealing the FORA program, the bill increases the amount of unallocated General Revenue funds available by $2.1 billion." What Happens Next It remains to be seen whether private insurers will be able to pick up the slack caused by the reduction in state support without increasing customer premiums. It will depend in part on the severity of future hurricanes that hit Florida.
