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CNET
6 hours ago
- Business
- CNET
Have Student Loan Debt? These 6 Expert-Approved Moves Can Get You Back on Track
Regardless of your situation, there are ways to take charge of your student loans. Getty Image/Zooey Liao/CNET After a five-year payment pause, it's understandable that your student loans may not have been top of mind for some time (if ever). And with a barrage of news about the end of the Saving on a Valuable Education plan and the ramp-up of wage garnishment efforts, it's also understandable that you might be confused. I get it. I'm a student loan policy expert who's worked in the industry for more than 15 years, so I know the past few years have been trying ones for borrowers. It's easy to feel like everything happening with student loans is out of your hands. But there's still time for you to take charge of your student loans, and you don't need to let it all overwhelm you. Instead, follow my six recommendations to get yourself back on track and in control. Read more: SAVE Student Loan Borrowers Likely Won't Make Payments This Year, but Should Do This One Thing Now Figure out your student loan balance Do you know how much you owe in total on your student loans? It's a question that many borrowers can't answer when I ask them. You might have an idea (or think you do). But it's important to check, especially if you think you may be behind on your payments. Many borrowers I've worked with are surprised to find they owe more than they initially borrowed when it's time to start repayment. This is because most loans, except subsidized ones, begin accruing interest from the moment they are disbursed. Outstanding interest, which has not been capitalized or added to your loan, is listed separately from the principal balance. To fully understand your loan balance, it's important to carefully review your statements. If you know who your student loan servicer is, you can log into your online account to check your balance. If you're not sure, you can find out by logging into your Federal Student Aid account and visiting the My Aid page. Read more: 5 Ways to Pay Off Your Student Loans Even Faster Prepare to restart payments If you are enrolled in the Saving on a Valuable Education Plan, your loans have been in an administrative forbearance since summer 2024 due to the plan's legal challenges. You haven't been able to make payments, and your interest rate has been set to zero. This payment hold is temporary and could end soon. It's a good idea to explore other income-driven repayment plans so you can plan for your new monthly payment. You can use the US Department of Education's Loan Simulator to estimate your payments and check eligibility for specific plans. Read more: My Student Loan Payment Will Jump From $0 to $488 After SAVE Ends. Yours Might Too Earning less? Recertify your income A lot has changed since the first administrative forbearance in 2020, and if you're facing financial hardship or making less money than you were five years ago, you may want to apply to have your income recertified to potentially lower your student loan payment if you're on an income-driven repayment plan. To recertify your income, visit IDR application page and select "Recertify or Change Your Income-Driven Repayment Plan." Apply for the PSLF buyback program, if you're eligible The Public Service Loan Forgiveness program offers debt cancellation for teachers, nurses and other public service employees who work in a qualifying job for 10 years and make 120 payments on their loans. If you're enrolled in SAVE and were close to reaching your 120 total payments, the recent payment pause may have delayed your forgiveness. In this case, you might benefit from the PSLF buyback program. The PSLF buyback program lets you "buy back" months where your loans sat on hold during a forbearance period -- but only if doing so brings you to 120 total payments. For example, let's say you had already made 115 qualifying payments before your loan entered the SAVE Plan forbearance. You could apply for the PSLF buyback program to buy back five of the months where your loans were in forbearance to reach the 120-payment requirement. You'll apply for the program online, and once approved, you'll have 90 days to pay off what you owe for the number of months you buy back. So, if your monthly payment was $100, you'd need to pay $500 to receive forgiveness. You'll also need to make sure you meet all other PSLF eligibility criteria, such as working for a qualifying employer and having the correct loan type. If you think you're eligible and want to confirm your payment count, you can find qualifying payment amounts in your account. Expert tip: Note: Many borrowers have been waiting to find out the status of their PSLF buyback request, but it's still worth applying if you meet the requirements. Read more: More Student Loan Forgiveness Is on the Way for PSLF Borrowers. What's Next for Debt Relief? Pay off your interest while you're in school If you're still in college, your student loans likely haven't entered repayment yet. While it's difficult to predict what repayment options will be available in the future, there are proactive steps you can take now. One recommendation is to pay off any interest that accrues while you're still in school. Even small contributions can help reduce the overall cost of your loans in the long run. If your federal student loan hasn't yet entered repayment, you won't be eligible to enroll in a repayment plan. Repayment starts six months after graduation or if your enrollment drops below half-time, unless you enroll in another program, like graduate school, before the grace period ends. Read more: What's the Future of Student Loans and FAFSA if the Department of Education Goes Under? Don't count on student loan forgiveness Many borrowers have turned to income-driven repayment plans to reduce their monthly payments and potentially qualify for student loan forgiveness. However, forgiveness is not guaranteed, especially as legal challenges continue to threaten SAVE and some of the other IDR repayment plans. Programs like PSLF and forgiveness under the Income-Based Repayment Plan carry less risk, since they would require congressional action to be altered or eliminated. That said, it's always wise to plan for full repayment of your student loans, regardless of any current potential forgiveness opportunities.
CNET
15 hours ago
- Business
- CNET
Verizon 5G Home Internet vs. T-Mobile 5G Home Internet: The Battle for the Best 5G Fixed Wireless Broadband Service
Verizon vs. T-Mobile: Which company does 5G home internet better? 5G home internet, where internet service reaches your home router over the air instead of via a cable, has been making a lot of noise lately. It was a customer satisfaction favorite among internet types in 2024. You probably already know that T-Mobile and Verizon are the top players in the game (no disrespect to AT&T Internet Air). These two telecom companies dominate the 5G fixed wireless internet market and often compete for customers. But which one offers an overall better service? CNET picks T-Mobile 5G Home Internet as the better internet service provider due to its wide availability. You can find coverage in more locations across the country (including rural areas), offering internet connectivity to more people. Verizon 5G Home internet has faster speeds on average, but falls short on coverage. In recent years, T-Mobile has also performed better than Verizon regarding customer satisfaction, though it's close between the two companies. T-Mobile 5G Home Internet nabbed the top spot among nonfiber ISPs in the 2025 American Customer Satisfaction Index, with Verizon 5G Home Internet right behind it. T-Mobile also had the second-highest score among all ISPs in the 2024 J.D. Power Survey. Zooey Liao/CNET Offering broadband services in rural areas is important. However, in order to maintain competition, T-Mobile 5G Home Internet and Verizon 5G Home must also appeal to urban and suburban customers. T-Mobile has made headlines by introducing new plans with faster speeds and some streaming perks that compete with Verizon's history of formidable perks and streaming add-ons. Keep in mind that the best internet provider for you will probably be the one that caters to your needs and is available in your area. Note: All prices listed on this page reflect available discounts for setting up paperless billing. If you decide not to go with automatic monthly payments, your price will be higher. Locating local internet providers T-Mobile 5G Home Internet Better coverage and reaches more rural areas Our take - T-Mobile 5G Home Internet has the broadest reach of any fixed wireless internet provider. By utilizing its 4G LTE network and the expanding 5G grid, T-Mobile has aggressively expanded its coverage map and offered its services to more households than Verizon's 5G solution. Read full review Or call to learn more: (877) 519-7610 Check with T-Mobile Show more details Compare Verizon 5G Home Boasts faster speeds Our take - Verizon 5G Home uses ultrawideband 5G technology to deliver maximum download speeds close to 1 gigabit for select addresses and average download speeds of 300 megabits per second. That's the fastest average download speed delivered by a major fixed wireless provider. Read full review Or call to learn more: (888) 461-3204 Check with Verizon Show more details Compare Verizon 5G Home and T-Mobile 5G Home Internet comparison Plan Max speeds Monthly price Equipment fee Data cap Contract T-Mobile Rely Internet Read full review 87-318Mbps download, 14-56Mbps upload $50 ($35 for eligible Go5G Plus and Magenta Max mobile customers) None None None T-Mobile Amplified Internet Read full review 133-415Mbps download, 12-55Mbps upload $60 ($45 for eligible Go5G Plus and Magenta Max mobile customers) None None None T-Mobile All-In Internet Read full review 133-415Mbps download, 12-55Mbps upload $70 ($55 for eligible Go5G Plus and Magenta Max mobile customers) None None None Verizon 5G Home Read full review 300Mbps download, 20Mbps upload $50 ($35 with qualifying Verizon 5G mobile plans) None None None Verizon 5G Home Plus Read full review 1,000Mbps download, 75Mbps upload $70 ($45 with qualifying Verizon 5G mobile plans) None None None Show more (0 item) Shop providers at my address Source: CNET analysis of provider data. What to know about 5G home internet before signing up 5G continues to roll out nationwide, offering millimeter-wave cellular speeds at higher, faster frequencies than 4G LTE. That's great news for our phones and other smart gadgets connecting over cellular airwaves. And it could be a game changer for our homes, too. With the potential for near-gigabit speeds over the air that rival cable and fiber internet service providers -- plus the added appeal of straightforward, consumer-friendly terms that ditch data caps, equipment fees and the like -- 5G is shaping up to become one of the most exciting developments in residential internet in years. T-Mobile 5G signals are extremely convenient -- much more convenient than installing a fiber or cable network -- but the signal doesn't reach everywhere. The first hurdle with 5G home internet service is whether it's available at your address. Though you may get cell service from T-Mobile or Verizon, that doesn't automatically mean you'll get home internet at your address. Verizon and T-Mobile are the providers doing the most to expand 5G's availability for home internet use, though the providers do have another competitor in AT&T's 5G home internet rollout, AT&T Internet Air. AT&T doesn't boast the same availability as Verizon or T-Mobile, with a coverage of just 14% of the US, according to the Federal Communications Commission. However, all providers offer dedicated 5G fixed wireless home internet plans that promise fast speeds and simple terms at competitive rates. In some areas, you might even find that your home is serviceable by both Verizon and T-Mobile, as my former CNET colleague Eli Blumenthal discovered in his quest to replace his cable provider. Verizon 5G Home vs. T-Mobile 5G Home Internet: Plans and pricing T-Mobile/CNET Are you tired of deciphering which broadband package to choose out of countless options? Both Verizon and T-Mobile lean into providing a no-strings-attached broadband experience, a welcome relief for many internet users. Each provider offers simplified 5G home internet plans requiring no term agreements, no data caps and no additional monthly equipment fees. Verizon offers two plan options: Verizon 5G Home and Verizon 5G Home Plus. Verizon 5G Home comes with a three-year price guarantee and lower download speeds, while Verizon 5G Home Plus locks in your price for four years, plus higher download speeds and a slew of additional perks, which we'll outline in the perks and promos section below. T-Mobile now offers three home internet plans, though two feature the same speeds. T-Mobile Rely Internet costs $50 monthly for speeds ranging between 87 to 318Mbps download and 14-56Mbps upload. T-Mobile Amplified Internet Plus costs $60 for speeds ranging from 133 to 415Mbps download and 12 to 55Mbps upload and T-Mobile All-In Internet costs $70 monthly for the same speeds but includes a mesh Wi-Fi router to extend the range of coverage throughout the house and 24/7 "interactive video support," according to T-Mobile's website. T-Mobile also rolled out its Home Internet Backup plan that you can use in the case of power or internet outages or during natural disasters that interrupt connectivity. For $20 a month, you get up to 130GB, which is admittedly not very much, but this internet option isn't intended for heavy or regular usage. T-Mobile offers this internet option as a backup to your current internet plan. Getty Images/Tharon Green/CNET Which is faster? While 5G can reach gigabit download speeds and Verizon advertises its 5G Home Plus plan as maxing out at 1,000Mbps, don't expect those top-end numbers from either provider's home internet product. T-Mobile says on its site that customers can expect "average download speeds in excess of 100Mbps," and that people typically experience ranges from 87 to 318Mbps. Why so relatively low? T-Mobile 5G Home Internet relies on its growing 5G grid and existing 4G LTE network to expedite its availability. So don't expect a pure 5G experience. Still, thanks to upgraded gateway routers, T-Mobile can offer faster speeds on average than previously offered, meaning you could see speeds up to 415Mbps (though probably not consistently). CNET's Amanda Kooser has used T-Mobile 5G Home Internet for over two years and has encountered inconsistent speeds in her home. "During congestion, Home Internet customers may notice speeds lower than other customers due to data prioritization," reads the first sentence of T-Mobile 5G Home Internet's general terms. "Service may be slowed, suspended, terminated, or restricted for misuse, abnormal use, interference with our network or ability to provide quality service to other users." In other words, you may experience some slowed internet speeds during peak hours, like after 5 p.m. Unlike with data caps, however, there's no allotment of "priority data" and no overage fees for consuming too much data. On the other hand, Verizon tells its subscribers to expect average download speeds of around 300Mbps. Verizon's dependence on its Ultra Wideband 5G network (and lesser use of its "4G LTE backup") is the main reason for the faster speeds. It uses low-band, midband and millimeter-wave technology to offer speeds that could get as high as 1,000Mbps for some lucky people. Which offers the best value? When trying to gauge the best deal for your home, it's essential to look at the cost per Mbps to better understand the actual value. Considering the average download speed of 100Mbps for that basic $50 monthly fee, T-Mobile's Rely Internet rings in at 50 cents per Mbps, comparable to what you might pay for a midrange cable internet plan. If you have a qualifying Go5G Plus or Magenta Max mobile plan, you can trim that to $35 a month or 35 cents per Mbps. T-Mobile's Amplified Internet comes in at 60 cents comparatively, a steep price without a bundling discount, while T-Mobile All-In Internet rings in at 70 cents. Verizon 5G Home, which averages 125Mbps, matches that amount at a cost per Mbps of 40 cents. If you choose the Verizon 5G Plus plan, which averages 300Mbps, your monthly bill is $70, but that cost per Mbps goes down to just under 24 cents. Customers with qualifying Verizon mobile plans will get $15 off the monthly cost of either plan. If you can use that additional discount, it makes Verizon 5G Home -- the regular plan at 28 cents per Mbps and the Plus plan at an even better 15 cents per Mbps -- one of the most affordable out there compared to any cable internet plans by competitors. What about the fine print? Let's revisit that idea of the no-strings-attached internet experience. Verizon and T-Mobile are eager to get customers to try their 5G home internet offerings, so no hidden fees or taxes are added to the monthly cost. As we mentioned before, there's no contract or data cap. There's also no additional equipment rental fee, installation fee or other trap fees (although T-Mobile does charge a one-time, $35 activation fee), so it's a win-win for both providers and their customers. Verizon 5G Home vs. T-Mobile 5G Home Internet: Who can get it? FCC Neither provider offers a detailed coverage map for its 5G home internet solution. However, considering the list of cities they claim to cover and the total number of households, T-Mobile is in the lead. While Verizon 5G Home internet is available to approximately 40 million homes nationwide, T-Mobile 5G Home Internet reaches over 50 million households and serves almost 60% of the US population. In contrast, Verizon's 5G service is now available in more than 2,700 cities, covering only 21% of the country. Overall, T-Mobile 5G Home Internet has nearly 7 million customers (according to a recent Q1 2025 report), while Verizon's latest earnings report shows the company's subscriber base at 4.8 million. That's a sizable piece of the broadband pie for both upstart fixed wireless offerings. Verizon 5G Home vs. T-Mobile 5G Home Internet: Perks and promos Still not convinced by the straightforward terms both T-Mobile and Verizon put forward? They'll try to sway you with their promotional offers. First, T-Mobile and Verizon are so confident in their 5G home products that each offers to pay any early termination fees for new customers who break their current ISP contract, up to $500 for Verizon and $750 from T-Mobile. Second, they each offer similar discounts for eligible mobile customers. T-Mobile and Verizon will shave off $15 to $25 if you bundle your home internet with eligible mobile plans. Verizon offers some solid perks. All Verizon plans include a price lock of three to four years. If you sign up for 5G Home, you can get a Nintendo Switch and YouTube Premium for six months for free. Verizon 5G Home Plus subscribers will also receive those same promotions, plus a choice of either a $400 discount on select Samsung products or a JBL PartyBox On-the-Go Essential. Comparatively, T-Mobile's latest deal for new customers who sign up online is a prepaid Mastercard card worth $300. All T-Mobile 5G Home Internet customers get a five-year price guarantee. Lastly, the All-In Home Internet plan also features Hulu (with ads) and a Paramount Plus subscription. Verizon 5G Home vs. T-Mobile 5G Home Internet: What do customers have to say? We refer to two of the top customer satisfaction surveys within our ISP reviews -- J.D. Power and the American Customer Satisfaction Index -- and they consistently place T-Mobile and Verizon at the top of their rankings. Verizon 5G scored 605 points to T-Mobile's 649 in the J.D. Power study. The national average in that study was 630, which means that T-Mobile performed above average. ACSI Similarly, over at the ACSI's 2025 survey, T-Mobile 5G Home Internet impressively led all nonfiber ISPs with a score of 78 out of 100, well above the ACSI industry average of 70 points. But can you guess which provider was right behind it? Verizon 5G Home internet took second place, scoring 77 points, also above the ACSI industry average. Anecdotally, one of our CNET writers tested T-Mobile during its pilot program and preferred it over his previous provider, Xfinity. Final thoughts T-Mobile and Verizon are still aggressively building their 5G networks, so we're closer to the story's beginning than the middle or end, especially regarding 5G fixed wireless internet overall. T-Mobile 5G Home Internet has a slight edge over Verizon 5G Home internet in availability and customer satisfaction. Adding its 4G LTE network to 5G makes it a much more viable pick, particularly in rural and underserved areas of the country, where it's a compelling alternative to options like satellite or DSL. Verizon 5G Home internet takes the lead in performance, featuring nearly triple the current download speeds of T-Mobile 5G Home Internet with the addition of more enticing perks and bundles. As such, T-Mobile may have the upper hand now, but Verizon seems poised to provide a higher upside in the future as the best fixed wireless internet in cities where the two overlap. Verizon 5G Home vs. T-Mobile 5G Home Internet FAQs Is T-Mobile 5G Home Internet better than Verizon 5G Home? It depends on how you define "better." T-Mobile 5G Home Internet is available to more households than Verizon 5G Home internet, so it's got the edge there. Verizon 5G Home internet boasts a higher average download speed (300Mbps), so it can claim a win in that category. Ultimately, the product that will be best for you is the one that's available at your address and can provide enough download speed to enable your household to do what it needs to do. Show more Which internet service provider has the best 5G coverage? Not to sound like a broken record, but it depends on how you define "best 5G coverage." If you're looking strictly at the number of people covered, T-Mobile 5G Home Internet is the ISP with the best 5G coverage. If you define "best" by which provider has the better download speed performance, then the winner is Verizon 5G Home internet. It has a top end of 1,000Mbps compared to T-Mobile's 415Mbps. Can you work from home using Verizon 5G Home or T-Mobile 5G Home Internet? Yes. Verizon 5G Home internet and T-Mobile 5G Home Internet should provide near or above the FCC's broadband speed definition of at least 100Mbps download and 20Mbps upload. Both fixed wireless products, in urban and suburban areas, won't give you as many options as some cable and fiber providers. On the flip side, Verizon 5G Home and T-Mobile 5G Home Internet are cheaper (especially with their mobile discounts) and you'll have the opportunity to try them out at very little risk to see if they'll be adequate for your home office needs. Show more
CNET
a day ago
- Business
- CNET
ChatGPT Will Now Reference Past Conversations With Free-Tier Chatters
ChatGPT's ability to learn and recall facts and information you feed it during your conversations is no longer limited to premium subscribers. An X post by OpenAI on Tuesday revealed that the AI chatbot will now reference recent conversations with people that have a free-tier membership as well. OpenAI's chatbot already remembers tens of thousands of tokens (or individual queries) at any point in time, but the latest memory updates have allowed ChatGPT to pull more information from prior messages you've sent it -- ranging from your name to previous scenarios you asked for advice about. (Disclosure: Ziff Davis, CNET's parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.) Zooey Liao/CNET This level of adaptability lets people "train" ChatGPT to suit their needs (whether that be troubleshooting tech issues or creating a romantic partner) and influences how the chatbot will tailor its replies for as far back as its database of your queries extends. The memory update for free-tier chatters is a "lightweight" version of what's available to Plus- and Pro-tier ChatGPT subscribers, but it's not immediately clear how many tokens the chatbot will save and mull through for the free subscription tier. What is clear is that the free version of OpenAI's chatbot will now be able to be trained to deliver more personalized responses. ChatGPT Free is one of CNET's best AI chatbots, and the new memory upgrade helps it stand out among the competition. If you want to disable ChatGPT's ability to save memories, you can do so from the personalization tab of the settings menu. This won't delete memories that the AI has already saved -- you need to delete the original query and tell the chatbot to forget the memory, instead. A representative for OpenAI did not immediately respond to a request for comment.
CNET
2 days ago
- Business
- CNET
I'm Not Counting on Social Security to Fund My Retirement and You Shouldn't Either. Here's Why
Getty Images/Zooey Liao/CNET Millennials and Gen Zers planning on Social Security to fund their retirement may want to reconsider. For years, there's been talk about the Social Security fund running out of money. The government program could see its funds depleted sooner if President Donald Trump cuts Social Security taxes. As a personal finance expert who saved enough to retire comfortably at 40, I've worked with dozens of clients to help them calculate how much they need to save now to afford retirement. Whether Social Security is around, I can tell you with confidence that you shouldn't rely on this program to fully fund your future expenses. The monthly payments you'll receive from Social Security aren't enough to cover most of your expenses -- and these payments are only expected to decrease. Here's how Social Security benefits work and how to plan for your retirement without relying on this program's future. Read more: Do You Have to Pay Income Taxes on Social Security? Everything You Need to Know How do Social Security earnings work? Social Security is a government-run program we pay into through our payroll taxes -- employees pay 6.2%, employers pay 6.2% and self-employed individuals pay the full 12.4%. The money you pay in Social Security payroll taxes goes directly to current beneficiaries rather than into a personal savings account for you. So what you're paying now is for the generation before you and you will be paid out based on what the next generation puts into the pool of money. How much you'll receive from Social Security depends on whether you're single or married, how much you earned over your 35 highest-earning years and the age you are when you retire. Most people can start claiming benefits at 62 but the longer you wait, the more your monthly payout could be. You can use the Social Security benefits calculator to estimate what you're expected to receive. Read more: Social Security 2025: What Goes Into Determining Your Monthly Payment and How to Maximize It Will Social Security exist when you retire? Yes, it's likely that Social Security will be around when you retire. However, you may not receive the full benefit offered to current retirees. The Social Security Administration's 2024 annual report found that the program will likely be able to pay 100% of the current benefits through 2035. After that, retirees would receive 83% of their scheduled benefits. What could that look like? As of April 2025, the average Social Security payout for retirees is $1,948 per month. If you were to receive 83% of that, it would drop to approximately $1,617 per month. Is Social Security enough to fund your retirement? Most people count on Social Security to help fund their retirement savings. However, no matter how frugal you are, your Social Security payout alone is likely not enough income to cover your needs in retirement. Although $1,948 -- or $1,617 if you'll retire after 2035 -- isn't an insignificant amount, it's not enough to cover living expenses for any of my clients, and it's likely not enough for you. Social Security is a crucial part of many retirees' monthly income -- but it shouldn't be your sole retirement plan. Constance Craig-Mason of National Social Security Advisors agrees. "Financial well-being isn't just about the numbers -- it's about stability and peace of mind. Social Security should be viewed as a foundation, not the sole pillar of retirement planning." Don't rely on Social Security alone. Do this instead Rather than speculating about the fate of Social Security, I recommend putting together a plan now to start growing your own retirement fund. Even if you can't save much, starting small is better than pushing it down the road. Here are the preemptive steps I took that helped me plan for traditional retirement and let me save enough money to retire early in my 40s. 1. Review your options and set up a retirement fund Saving for retirement can feel impossible if you're living paycheck-to-paycheck and struggling to afford your rent, mortgage and other essentials. My first step doesn't require investing any money at all. Instead, I'd encourage you to review your options and get accounts set up so that you're ready to save when you're able to contribute. I also highly recommend talking to people in your life who are retired or nearing retirement age to learn how they got started. 2. Max out your employer-sponsored plan If your job offers a 401(k) or other retirement plan with a match, your best bet is contributing to that account until you reach your yearly maximum. This is your best bet, because your employer will meet part of your contributions, helping you grow your money faster. Because of retirement changes in the SECURE 2.0 Act, you may even be eligible to contribute to a workplace plan if you're part-time, depending on when the plan was set up. My husband and I are focused on contributing to our sponsored plans before investing anywhere else. It's an automatic way to earn extra money for retirement without much effort. This year, you can contribute up to $23,500 to your 401(k). If you're 50 or older, you can contribute an additional $7,500. 3. Open an IRA next If you reach your 401(k) max contribution, aim to invest in an individual retirement account next. The max IRA contribution limit for 2025 is $7,000. Whether a Roth or traditional IRA makes sense depends on your estimated tax rate now and in the future. Both let you grow your money tax-free; a Roth IRA lets you contribute post-tax dollars, while a traditional IRA is funded with pre-tax dollars then taxed when you withdraw from it. Too many of my clients open a brokerage account instead of an IRA, not realizing they're losing their hard-earned money in taxes each year. 4. Put extra money toward your mortgage now A good way to help your Social Security income and retirement fund stretch even further is by eliminating steep expenses. Owning your home outright gets rid of one of your biggest expenses. This sounds like a lofty goal, but it's possible. I focused on paying off $300,000 of debt, including my home, in three years. If you're getting a tax refund, work bonus or other windfall, pay it toward your mortgage if you can. Every bit can bring your balance down. 5. Lower your housing expenses, if you can If you're open to relocating, consider places with lower taxes and housing costs so you can put more money toward your retirement goals. A decade ago, my husband and I made the bold move of leaving my hometown of New York City to settle in Charlotte, North Carolina, which was much more affordable. We've saved tens of thousands of dollars in taxes, car insurance and living expenses each year. Even if you're not ready to move across the country, considering lower-cost neighborhoods in your area can make a big difference. We also downsized in Charlotte and decided to rent. The money we would have put toward home repairs and upkeep has freed up extra money for us. 6. Take advantage of health savings accounts Health care is one of the biggest expenses in retirement. So investing in your health now can save money later. Get in the habit of filling up tax-advantaged accounts such as a flexible spending account or health savings account to help you save money on your health expenses. Keep in mind that an FSA account is offered through your employer but you can set up an HSA yourself. These accounts can incentivize you to use those funds toward the health care resources you need to keep healthy habits in the long run as you won't pay as much out of pocket for health care purchases, check-ups and procedures. Then you can use your take-home pay to focus on your retirement plan. Focus on what's in your control We can't predict exactly what will happen with Social Security but we can take action now to reduce financial anxiety about the future. As Craig-Mason encourages, "When you combine Social Security benefits with smart saving strategies, intentional money management and a focus on aligning finances with your well-being, you're building a retirement plan that's sustainable and fulfilling -- no matter what uncertainties lie ahead." The worst thing you can do? Assume Social Security will cover everything. Instead, start planning today.
CNET
5 days ago
- Business
- CNET
I'm a Student Loan Expert. Here Are the 6 Things Borrowers Should Do Now
Getty Image/Zooey Liao/CNET Are you finding it difficult to keep up with student loan news? Whether it's the end of the Saving on a Valuable Education plan, the prospect of higher student loan payments or the ramp-up of wage garnishment efforts, there are a lot of changes happening to student loan programs. I get it. As a student loan policy expert who's worked in the industry for more than 15 years, the past few years have been trying ones for borrowers. It's easy to feel like everything happening with student loans is out of your hands. One thing I know for sure is that there are ways for you to take charge of your student loans. If you're enrolled in SAVE, working toward Public Service Loan Forgiveness or a searching for a more affordable payment plan, here's what I recommend doing now. Read more: SAVE Student Loan Borrowers Likely Won't Make Payments This Year, but Should Do This One Thing Now Figure out your student loan balance Do you know how much you owe in total on your student loans? It's a question that many borrowers can't answer when I ask them. You might have an idea (or think you do). But it's important to check, especially if you think you may be behind on your payments. Many borrowers I've worked with are surprised to find they owe more than they initially borrowed when it's time to start repayment. This is because most loans, except subsidized ones, begin accruing interest from the moment they are disbursed. Outstanding interest, which has not been capitalized or added to your loan, is listed separately from the principal balance. To fully understand your loan balance, it's important to carefully review your statements. If you know who your student loan servicer is, you can log into your online account to check your balance. If you're not sure, you can find out by logging into your Federal Student Aid account and visiting the My Aid page. Read more: 5 Ways to Pay Off Your Student Loans Even Faster Prepare to restart payments If you are enrolled in the Saving on a Valuable Education Plan, your loans have been in an administrative forbearance since summer 2024 due to the plan's legal challenges. You haven't been able to make payments, and your interest rate has been set to zero. This payment hold is temporary and will likely end soon. It's a good idea to explore other income-driven repayment plans so you can plan for your new monthly payment. You can use the US Department of Education's Loan Simulator to estimate your payments and check eligibility for specific plans. Read more: My Student Loan Payment Will Jump From $0 to $488 After SAVE Ends. Yours Might Too Earning less? Recertify your income A lot has changed since the first administrative forbearance in 2020, and if you're facing financial hardship or making less money than you were five years ago, you may want to apply to have your income recertified to potentially lower your student loan payment if you're on an income-driven repayment plan. To recertify your income, visit IDR application page and select "Recertify or Change Your Income-Driven Repayment Plan." Apply for the PSLF buyback program, if you're eligible The Public Service Loan Forgiveness program offers debt cancellation for teachers, nurses and other public service employees who work in a qualifying job for 10 years and make 120 payments on their loans. If you're enrolled in SAVE and were close to reaching your 120 total payments, the recent payment pause may have delayed your forgiveness. In this case, you might benefit from the PSLF buyback program. The PSLF buyback program lets you "buy back" months where your loans sat on hold during a forbearance period -- but only if doing so brings you to 120 total payments. For example, let's say you had already made 115 qualifying payments before your loan entered the SAVE Plan forbearance. You could apply for the PSLF buyback program to buy back five of the months where your loans were in forbearance to reach the 120-payment requirement. You'll apply for the program online, and once approved, you'll have 90 days to pay off what you owe for the number of months you buy back. So, if your monthly payment was $100, you'd need to pay $500 to receive forgiveness. You'll also need to make sure you meet all other PSLF eligibility criteria, such as working for a qualifying employer and having the correct loan type. If you think you're eligible and want to confirm your payment count, you can find qualifying payment amounts in your account. Expert tip: Note: Many borrowers have been waiting to find out the status of their PSLF buyback request, but it's still worth applying if you meet the requirements. Read more: More Student Loan Forgiveness Is on the Way for PSLF Borrowers. What's Next for Debt Relief? Pay off your interest while you're in school If you're still in college, your student loans likely haven't entered repayment yet. While it's difficult to predict what repayment options will be available in the future, there are proactive steps you can take now. One recommendation is to pay off any interest that accrues while you're still in school. Even small contributions can help reduce the overall cost of your loans in the long run. If your federal student loan hasn't yet entered repayment, you won't be eligible to enroll in a repayment plan. Repayment starts six months after graduation or if your enrollment drops below half-time, unless you enroll in another program, like graduate school, before the grace period ends. Read more: What's the Future of Student Loans and FAFSA if the Department of Education Goes Under? Don't count on student loan forgiveness Many borrowers have turned to income-driven repayment plans to reduce their monthly payments and potentially qualify for student loan forgiveness. However, forgiveness is not guaranteed, especially as legal challenges continue to threaten SAVE and some of the other IDR repayment plans. Programs like PSLF and forgiveness under the Income-Based Repayment Plan carry less risk, since they would require congressional action to be altered or eliminated. That said, it's always wise to plan for full repayment of your student loans, regardless of any current potential forgiveness opportunities.
