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CNET
4 days ago
- Business
- CNET
SAVE Borrowers Encouraged to Move to IBR Even Though Forgiveness Options Are Paused. Here's What's Going On
Zooey Liao/CNET/Getty Images Millions of SAVE borrowers seeking forgiveness have been encouraged to move their loans to an Income-Based Repayment plan -- especially since their loans will start accruing interest in about a week. But now forgiveness through IBR is paused, at least for the time being. The Federal Student Aid website says student loan forgiveness through IBR is on hold while the Education Department updates its system to recalculate eligible payments. "IBR forgiveness will resume once those updates are completed," said an FAQ section updated July 9. The key question is how the Education Department counts payments made under the Saving on a Valuable Education repayment plan, which was struck down by the courts earlier this year. Borrowers on the IBR can have the payments they made on other income-driven repayment plans (including SAVE, PAYE and ICR) count toward their IBR forgiveness. But one of SAVE's features allowed borrowers to count months in certain types of forbearance when they didn't make payments, according to student loan expert Mark Kantrowitz. "The decision of the 8th Circuit Court of Appeals blocks these additional deferments and forbearances from counting toward forgiveness," he said in an email. "So the US Department of Education will need to make changes to the qualifying payment counts." Student loan forgiveness options have dwindled considerably during President Donald Trump's second administration. IBR is currently the only repayment plan available that offers a path to forgiveness to existing borrowers. Eligible student loan borrowers can receive forgiveness after 20 or 25 years' worth of payments on the income-driven student loan repayment plan, depending on when they took out their loan. We'll explain what could happen with IBR, and what you should do if you're waiting for student loan forgiveness. Read more: SAVE Student Loan Borrowers: You Don't Have to Move to IBR by Aug. 1, but You May Want to: Here's How to Decide Is student loan forgiveness going away? Multiple paths to student loan forgiveness have disappeared in the past year. ICR, PAYE and SAVE plans are no longer eligible for forgiveness directly, following the court ruling in February that Congress exceeded its authority by approving them. Since IBR was created under a different rule, it wasn't affected by the court's ruling. Forgiveness through IBR should be safe for now. But it's understandable that borrowers -- deciphering confusing and misleading information as they wait for forgiveness -- may be skeptical of the Education Department's reassurances that IBR forgiveness is coming back. After February's court decision, the application for income-driven repayment plans was removed from the federal student loan site, causing concern among borrowers. But it was made available again a month later with revisions. This could, in theory, be a similar scenario, where the IBR forgiveness will resume at a later date. When will IBR forgiveness come back? Though the Education Department calls it "temporary," there's no indication how long the IBR pause will last. With a backlog of 1.5 million applications for repayment plans and huge swaths of the Department of Education staff wiped out, it's unclear how long it could take to resolve the payment recalculation. The Washington Post reported that several student loan servicers have said the Education Department hasn't asked them to process loan forgiveness for any borrowers since mid-January. "This not only affects the loan servicers, but also the US Department of Education, since final approval of loan forgiveness is handled in-house," Kantrowitz said. The Department of Education didn't immediately respond to a request for comment. Are there other options for forgiveness besides IBR? Besides IBR, existing borrowers will have another option next year under the new Republican-backed law passed earlier this month: the Repayment Assistance Plan. The new Repayment Assistance Plan could offer slightly lower monthly payments for some borrowers, but the plan calls for 30 years of qualifying payments before loans are forgiven, compared with the 20 to 25 years under the current IBR. So you'll end up paying more in interest over time. Anyone who takes out student loans after July 2026 will have just two repayment options: RAP and the standard repayment plan. Should I still apply for IBR if I'm a SAVE borrower? Millions of borrowers enrolled in SAVE will start accruing interest on their loans again starting Aug. 1. However, payments remain on hold while your loans are in a general forbearance, which could last until mid-2026. You aren't required to switch plans until then, although interest will pile up during that time. However, if you decide to switch, you can compare other income-driven repayment plan options using the Federal Student Aid loan simulator. You can apply to switch to an IDR on the FSA website to restart payments that count toward forgiveness. If you do apply for a new plan, expect the application to take several months to process due to the backlog, Kantrowitz said. The Department has been encouraging SAVE borrowers to switch to IBR, which could mean an even higher volume of applicants as the Aug. 1 deadline approaches. What should I do if I'm enrolled in an IBR? If you're enrolled in an IBR and near or past the payment threshold to be eligible for loan forgiveness, Kantrowitz advises you to continue making payments until you receive notification that your loans have been forgiven, which should happen automatically. "Any excess payments will be refunded," he said. "They could switch into a general forbearance, but there's a risk that they've counted their qualifying payments incorrectly. It is better to just continue making payments."
CNET
08-07-2025
- Business
- CNET
It's Prime Day. Here's How You Can Get a $250 Amazon Gift Card Right Now
Zooey Liao/CNET Amazon's Prime Day starts today and runs through Friday. It's one of the summer's biggest sales with hundreds of discounts across countless categories. If you're planning to shop this July's Prime Day, you might want to consider applying for the Prime Visa. For this event, Amazon increased the card's welcome offer to a $250 Amazon gift card instantly upon approval. But act quick, it'll only be available until July 14. It's rare for a credit card to offer a welcome bonus that you don't have to "earn" by spending a certain amount with the card. And while the Prime Visa technically has no annual fee, to get approved for this card, you'll need to be a Prime member, which costs $139 a year. I've had the Prime Visa card for going on four years, and it comes in handy when I need last-minute gifts or everyday essentials. I also like that it earns 5% back on all purchases at Amazon and Whole Foods, and often earns even higher rewards on select items during events such as Prime Day. How do you earn a $250 Amazon gift card with the Prime Visa? All you have to do to earn this $250 gift card is get approved for a new Prime Visa credit card. Once approved for the Prime Visa, you'll receive the Amazon gift card right away. Most cards require you to spend a certain amount in the first few months of account ownership to "earn" a bonus, but the Prime Visa card doesn't. The gift card is automatically added to your Amazon Prime account when you're approved for this card. What are the Prime Day benefits of the Prime Visa card? Amazon's flagship card is a great all-around rewards card, since it offers 5% back on travel booked through Chase and 2% back at gas stations, restaurants and rideshare services. You can also earn 7% back or more on eligible Amazon items from July 8 to 11 when you opt for no-rush delivery, and 10% back on select products. Checking out on Amazon is certainly convenient, but I also like to shop small. You can do both by shopping through Amazon's small business shopping hub. It's not the smoothest shopping experience, but it's worked well for me in a pinch. Is the Prime Visa the best card for shopping Prime Day? It's difficult to find another card that offers all of the same Amazon perks as the Prime Visa. But this card only makes sense if you're a Prime member and regular Amazon shopper. If you're not a Prime member, check out the card's younger sibling, the Amazon Visa, which earns 3% back at Amazon. It's not as rewarding but has no annual fee and comes with a $50 gift card on approval. Don't shop Amazon often enough to justify either card? No problem. Our CNET credit card editor, Evan Zimmer, recommends the Blue Cash Preferred Card from American Express for groceries and gas and the Wells Fargo Active Cash Card* for pretty much everything else. There's also the Blue Cash Everyday Card from American Express, which has no annual fee and offers rewards with select US online retailers, including Amazon. For rates and fees of the Blue Cash Preferred Card from American Express, click here. *Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit for more details. Underwritten by Amex Assurance Company. *All information about the Prime Visa and Wells Fargo Active Cash card has been collected independently by CNET and has not been reviewed by the issuer.
CNET
08-07-2025
- Business
- CNET
It's Prime Day. Here's How You Can Get a $200 Amazon Gift Card Right Now
Zooey Liao/CNET Amazon's Prime Day has started and runs till July 11. It's one of the summer's biggest sales with hundreds of discounts. If you're planning to shop, Amazon is offering a $200 gift card when you're approved for the Prime Visa. It's rare for a credit card to offer a welcome bonus that you don't have to "earn" by spending a certain amount with the card. And while the Prime Visa technically has no annual fee, to get approved for this card, you'll need to be a Prime member, which costs $139 a year. I've had the Prime Visa card for going on four years, and it comes in handy when I need last-minute gifts or everyday essentials. I also like that it earns 5% back on all purchases at Amazon and Whole Foods, and often earns even higher rewards on select items during events such as Prime Day. How do you earn a $200 Amazon gift card with the Prime Visa? All you have to do to earn this $200 gift card is get approved for a new Prime Visa credit card. Once approved for the Prime Visa, you'll receive the Amazon gift card right away. Most cards require you to spend a certain amount in the first few months of account ownership to "earn" a bonus, but the Prime Visa card doesn't. The gift card is automatically added to your Amazon Prime account when you're approved for this card. What are the Prime Day benefits of the Prime Visa card? Amazon's flagship card is a great all-around rewards card, since it offers 5% back on travel booked through Chase and 2% back at gas stations, restaurants and rideshare services. You can also earn 7% back or more on eligible Amazon items from July 8 to 11 when you opt for no-rush delivery, and 10% back on select products. Checking out on Amazon is certainly convenient, but I also like to shop small. You can do both by shopping through Amazon's small business shopping hub. It's not the smoothest shopping experience, but it's worked well for me in a pinch. Is the Prime Visa the best card for shopping Prime Day? It's difficult to find another card that offers all of the same Amazon perks as the Prime Visa. But this card only makes sense if you're a Prime member and regular Amazon shopper. If you're not a Prime member, check out the card's younger sibling, the Amazon Visa, which earns 3% back at Amazon. It's not as rewarding but has no annual fee and comes with a $50 gift card on approval. Don't shop Amazon often enough to justify either card? No problem. Our CNET credit card editor, Evan Zimmer, recommends the Blue Cash Preferred Card from American Express for groceries and gas and the Wells Fargo Active Cash Card* for pretty much everything else. There's also the Blue Cash Everyday Card from American Express, which has no annual fee and offers rewards with select US online retailers, including Amazon. For rates and fees of the Blue Cash Preferred Card from American Express, click here. *Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit for more details. Underwritten by Amex Assurance Company. *All information about the Prime Visa and Wells Fargo Active Cash card has been collected independently by CNET and has not been reviewed by the issuer.
CNET
07-07-2025
- Business
- CNET
Get $200 to Spend on Tomorrow's Prime Day Sale With the Prime Visa
Zooey Liao/CNET Amazon's Prime Day starts tomorrow and ends on July 11. It's one of the summer's biggest sales with hundreds of discounts. If you're planning to shop, Amazon is offering a $200 gift card when you're approved for the Prime Visa. It's rare for a credit card to offer a welcome bonus that you don't have to "earn" by spending a certain amount with the card. And while the Prime Visa technically has no annual fee, to get approved for this card, you'll need to be a Prime member, which costs $139 a year. I've had the Prime Visa card for going on four years, and it comes in handy when I need last-minute gifts or everyday essentials. I also like that it earns 5% back on all purchases at Amazon and Whole Foods, and often earns even higher rewards on select items during events such as Prime Day. How do you earn a $200 Amazon gift card with the Prime Visa? All you have to do to earn this $200 gift card is get approved for a new Prime Visa credit card. Once approved for the Prime Visa, you'll receive the Amazon gift card right away. Most cards require you to spend a certain amount in the first few months of account ownership to "earn" a bonus, but the Prime Visa card doesn't. The gift card is automatically added to your Amazon Prime account when you're approved for this card. What are the Prime Day benefits of the Prime Visa card? Amazon's flagship card is a great all-around rewards card, since it offers 5% back on travel booked through Chase and 2% back at gas stations, restaurants and rideshare services. You can also earn 7% back or more on eligible Amazon items from July 8 to 11 when you opt for no-rush delivery, and 10% back on select products. Checking out on Amazon is certainly convenient, but I also like to shop small. You can do both by shopping through Amazon's small business shopping hub. It's not the smoothest shopping experience, but it's worked well for me in a pinch. Is the Prime Visa the best card for shopping Prime Day? It's difficult to find another card that offers all of the same Amazon perks as the Prime Visa. But this card only makes sense if you're a Prime member and regular Amazon shopper. If you're not a Prime member, check out the card's younger sibling, the Amazon Visa, which earns 3% back at Amazon. It's not as rewarding but has no annual fee and comes with a $50 gift card on approval. Don't shop Amazon often enough to justify either card? No problem. Our CNET credit card editor, Evan Zimmer, recommends the Blue Cash Preferred Card from American Express for groceries and gas and the Wells Fargo Active Cash Card* for pretty much everything else. There's also the Blue Cash Everyday Card from American Express, which has no annual fee and offers rewards with select US online retailers, including Amazon. For rates and fees of the Blue Cash Preferred Card from American Express, click here. *Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit for more details. Underwritten by Amex Assurance Company. *All information about the Prime Visa and Wells Fargo Active Cash card has been collected independently by CNET and has not been reviewed by the issuer.
CNET
26-06-2025
- Business
- CNET
Social Security's Shrinking Reserves Could Mean Lower Benefit Payments: What To Know
Social Security reserves are drying up faster than expected. Here's what you should know. Getty Image/ Zooey Liao/ CNET Millions of Americans rely on Social Security as supplementary income, and for many, it's their lifeline. According to the latest annual report from the Social Security Trustees, the program is in worse shape than expected just months ago, with trust fund reserves now projected to run out a year earlier -- in 2034. To be clear, monthly Social Security payments will still go out, but recipients could see nearly a 25% cut in benefits. That's troubling, especially for those who rely on it as their main income source. Turning things around would require swift action from lawmakers. The overarching issue for the Social Security program is that it's paying out more money than it's receiving from the current workforce, a situation known as an actuarial deficit. The annual report details some of the reasons that the trustees project the trust funds to run out sooner than expected, including lower birthrates and newly implemented initiatives like the Social Security Fairness Act. The annual report is an important health check on the current state of the Social Security program, but it also lays the groundwork for policymakers to make funding changes -- reducing the potential harm to those who rely on monthly payments, many of whom are already struggling financially. Below, we'll go over some of the details found in the report, including the reasoning for the updated projections and what it means for you if Social Security can't continue to pay full benefits to recipients -- or when the trust funds become "insolvent." For more, here's what you should know about paper Social Security checks going away. How is Social Security funded anyway? Social Security is funded through a dedicated payroll tax, meaning that employers and employees each pay 6.2% of wages up to the taxable maximum for the given year. For 2025, the maximum is $176,100. If you're self-employed, your tax rate is doubled to 12.4%. The dedicated tax dollars go to the Social Security trust funds -- comprising the Old-Age and Survivors Insurance and the Federal Disability trust funds -- which are managed by the US Treasury and used to pay retirement, disability and survivor benefits. Any surplus is invested in special government securities. The main issue is with the OASI trust fund, which is expected to be depleted in 2033 -- at which point it will only be able to pay about 77% of scheduled benefits. The DI trust fund reserves aren't expected to be depleted within the 75-year period that ends in 2099. What's causing the Social Security fund to run out of money? Social Security is running out of funds for a number of reasons. However, a major factor is the growing number of Baby Boomers retiring compared to the size of the current workforce, which can't pay in enough to keep the Social Security fund solvent. In addition to the growing number of retirement applications, the Social Security Fairness Act, which went into effect in January of this year, has further strained the program. The act repeals two provisions that previously prevented certain types of public workers from receiving benefits. With those provisions out of the way, Social Security is responsible for ongoing payments and billions of dollars in back payments for qualifying individuals. Another factor is the growing actuarial deficit, which has widened since the 2024 annual report that had projected insolvency in 2035. The actuarial deficit is the difference between the Social Security's payment obligations versus the flow of money into the Social Security trust fund. Last year, the deficit was 3.50%, where it has since grown to 3.82%. These deficit projections are based on government estimates extending through the end of the century. The latest annual report also took into account lower birthrates for a longer period of time compared to last year's report and how much labor contributes to the GDP. What would it take to make Social Security solvent? Closing the gap and making the Social Security program solvent would require a cut to benefits, a permanent increase to the payroll tax or a combination of the two. The annual trustees report lays out potential paths to make Social Security solvent until 2099. One path would be to introduce an immediate, permanent payroll tax hike of 3.65% to be shared between employers and employees. Another path would be to immediately and permanently cut all scheduled and future Social Security benefits by 22.4%. What happens after the Social Security fund becomes insolvent? Image illustrating how much in benefits Social Security will be able to pay after the fund becomes insolvent. Social Security Administration If nothing is put in place to fill the gap for Social Security funds, 2034 will be a tough year for many. It's important to remember that Social Security payments won't suddenly stop -- but they will be reduced. After the Social Security trust funds are depleted, existing payroll deductions will still be able to pay up to 81% of benefits. For more, be sure to check out the Social Security and SSDI cheat sheet.
