Bankrate

The uncertainty surrounding income-driven repayment plans under the Trump administration could have a significant impact on women with student loan debt. Women not only make up the majority of college students, but they also carry more debt and face lower wages on average when they enter the workforce compared to men. The unequal burden of debt also compounds over time. An analysis by the Federal Reserve Bank of St. Louis shows that the debt gap between men and women increases by 3.5% each year. Men pay down their debt at a rate of 11% compared with a rate of 8% for women. According to Bankrate's research, nearly a third of women believe they'll never be able to pay off their student loans compared to 18% of men with student loan debt. What can borrowers do to stay on top of their student debt in the meantime? I asked student loan and financial experts for their best tips: - Make payments as usual and keep a record of your loans: Don't panic and keep making payments as usual if you're not in forbearance. Take screenshots and download files of your current/past loans, payment history, interest rates and loan terms as a form of insurance through studentaid.gov and your loan servicer. - Stay informed on income-driven repayment plans: Contact your loan servicer if you have any specific questions about your loans and sign up for communication alerts through your servicer and the Dept. of Education to receive real-time updates. - See if you qualify for Public Service Loan Forgiveness (PSLF): President Trump recently signed an executive order directing the Education Department to exclude certain borrowers from PSLF. The executive order states that “individuals employed by organizations whose activities have a substantial illegal purpose” will not be eligible for the program. Despite this, the PSLF program continues to be a loan forgiveness option for borrowers, particularly for women who are more likely to be working in public service fields. Look into your eligibility and submit the required annual form to potentially reduce your loan payments in the future. Read more from Bankrate: https://lnkd.in/ep9_h3jY

NEWS: Uncertainty over President Donald Trump’s policies isn’t just rattling financial markets, businesses and consumers. It’s also impacting the U.S. central bank. The Federal Reserve left interest rates unchanged at its March meeting, choosing to take a careful approach with how it steers the U.S. economy amid uncertainty over how the Trump administration’s agenda might impact the economy. The environment puts the Fed in a tricky situation. The choice to deliberately slow the economy is never easy, but for the past three years, it’s at least been clear cut — as the labor market stayed resilient and inflation stayed elevated. But what happens when both sides of the Fed’s dual mandate need attention? Trump’s policies — not just tariffs, but also federal spending cuts and layoffs, as well as stricter immigration — could push up both inflation and unemployment, economists say. Research suggests that companies often pass along higher import taxes to consumers. But on the other hand, tariffs make it harder for companies to produce as many goods and services, weighing on economic growth. In the middle of Trump’s first-term trade war, Fed officials cut interest rates three times to help shore up economic growth. Yet, that was before price pressures burst in the aftermath of the pandemic. Inflation has cooled, but it’s still elevated, rising 2.8 percent in February from a year ago, according to the latest data from the Bureau of Labor Statistics. Fed officials might not be so quick to rescue the economy, as price pressures stay elevated. There’s a common saying that economic growth requires certainty. Businesses can’t feel confident make investments or hiring decisions if they don’t know what to prepare for; consumers might pull back or feel less confident about making big-ticket purchases if they’re worried about the economy. But it also matters a great deal for the Fed. If the dueling threats of higher inflation and weaker economic growth keep the Fed on the sidelines, it raises the risk that the Fed keeps borrowing costs too high for too long. Only in hindsight, though, will we know. Whichever side of its mandate the Fed chooses — price stability or maximum employment — could have major implications for consumers’ wallets. What do you think the Fed should do in this environment: Keep inflation in check even if the job market starts to slow even more, or rescue the economy from a slowdown, even if prices might rise further?? Let me know in the comments, and read our recap of the decision:

Most former central bankers I’ve talked to over the years say there’s one economic scenario that keeps them up at night. Contrary to what you might think, it’s not a recession nor inflation. It’s the thought of both happening at once: “stagflation.” As the Fed gears up for its second rate-setting meeting of the year, officials are likely going to be debating whether that nightmare could seep into their reality — and what they might even be able to do about it. Stagflation is the worst of both economic worlds. Usually, it signals that prices are rising (bad) while the economy is slowing (also bad). They’re two economic ingredients that typically don’t go together. When prices rise, it typically signals that the U.S. economy is running red-hot — not losing steam. It’s happened once before: in the 1970s. Economic historians suggest that a "perfect storm" of policy missteps is necessary to create stagflation, but supply shocks that disrupt production and increase costs are usually always the common denominator. Stagflation has been the elephant in the room during a volatile few weeks in the stock market. The S&P 500 has dropped almost 9% from its record high on Feb. 19, even briefly sinking into correction territory. Investors began betting that the Fed could cut three times this year, while consumers’ inflation expectations rose the most since 1993. For Fed policymakers, though, those dueling economic scenarios are troubling. Usually, the Fed raises interest rates when inflation is hot and cuts borrowing costs when recession risks are rising. But when both sides of their dual mandate could be in jeopardy, they essentially have to make a tough choice. Which should they prioritize: maintaining a strong job market or ensuring price stability? Which could have the biggest consequences if left unchecked? “I suspect they will say it will be very costly to bring inflation down if we let it get very high. Therefore, in order to prevent us from having to do more damage in the future, we'll lean toward making sure that inflation doesn't get out of hand,” Erica Groshen tells me. Officials are heading into their March meeting with at least some good news. Prices rose less than expected in February, with the year-over-year inflation rate falling to 2.8% from 3%. Still, that doesn’t reflect the recent batch of tariffs that the Trump administration implemented — and another slate that's been delayed until early April. We'll all be watching what Fed officials signal in their new economic projections, set to be updated on Wednesday. Could the U.S. economy be at risk of stagflation — or at the very least, stagnation? Which side of its dual mandate is the Fed likely to focus on? Let me know your thoughts, and read our preview of the Fed meeting below. https://lnkd.in/eJQ7hM9

The Federal Reserve meets this week and is expected to hold rates steady. Economists will be keeping an eye on any changes to the central bank’s outlook on unemployment or economic growth as it could signal any concerns about the downside risks to the economy. Bankrate Chief Financial Analyst Greg McBride, CFA breaks down what this week’s Fed meeting means for your money. Follow along with Bankrate's live Fed blog starting tomorrow morning at 9:00 AM to see the latest news from our experts. https://lnkd.in/eEkg3Cv

From gig work to freelancing, for millions of Americans, the work day doesn't end at 5 p.m. According to a Bankrate survey, 36% of Americans have a side hustle, meaning they're doing extra work in addition to their main job to earn extra money. ?? ???? ???? For many people, side hustles are a great way to achieve their dreams, like developing a hobby to turn it into a full-time job. But for millions of Americans, that Uber or DoorDash gig is what's keeping food on their table. ?? 36% of Americans say they use their side hustle income to pay for regular living expenses, such as housing or food. Today's high cost of living has only made it harder for Americans to afford their everyday needs with one income. That's why we're seeing more people cite the "single tax," explore side hustles or even take on full second jobs. With 32% of people saying they'll always need a side hustle to make ends meet, that problem likely isn't going away any time soon. ??Even I'm not immune from this — I've freelanced on the side of my full-time job for years. Do you have a side hustle? If so, why?

The February Consumer Price Index is set to release this week and will be closely watched as trade tensions mount and consumers look for any signs of inflation cooling. Bankrate’s Chief Financial Analyst, Greg McBride, CFA breaks down what to expect from the inflation report.

While the February employment report was largely as expected, with 151k jobs added to payrolls and the jobless rate rising to 4.1%, this doesn't capture all of the federal jobs recently cut. The survey period is around the 12th of the month. All of us at Bankrate will be watching forthcoming reports as well as other incoming data for information relative to the economy and personal finances. Here's more on what to make of the latest snapshot of the job market.

My latest analysis for Bankrate found that there’s been little progress in closing the gender gap among the 20 highest-earning college majors over the past decade. The analysis, which focused on the latest data on college graduates from the U.S. Census Bureau, found that women accounted for just 26 percent of graduates with the 20 highest-paying bachelor’s degrees in 2022 — up only 2 percentage points from 2012. That's despite women making up the majority of the college population and college-educated workforce. Only six of the 20 highest-paying bachelor’s degrees — pharmacy, health and medical preparatory programs, civil engineering, chemistry, chemical engineering and industrial and manufacturing engineering — have posted notable gains in female graduates between 2012 and 2022. Census data showed an uptick between 5 and 9 percentage points among those majors during that period. Research by the Census, as well as several studies by economists, finds that differing preferences in college majors between men and women can at least partly explain the gender pay gap. Women with bachelor's degrees earned 79 cents for every dollar a man earned with the same level of education. “Women systematically sort into lower potential wage majors and occupations. Further, college major selection accounts for one-quarter of the gender wage gap," said labor economist Carolyn Sloane. "That’s a huge effect." With Equal Pay Day around the corner, what's your take on the challenges women face when pursuing higher-paying fields and how do you think they influence the gender pay gap? Share your thoughts with me in the comments ?? Read more: https://lnkd.in/efWSY32H

Years ago, I found myself in a tough spot with a credit card debt that spiraled into collections. As a new immigrant struggling in Los Angeles, I maxed out my second credit card and stopped paying the bills, leading to a ballooning debt over $1,000. It was a financially stressful time, but it taught me an invaluable lesson about handling collections. When my debt was sold to a collection agency, I finally decided to tackle the issue. I learned that collectors buy debt for pennies on the dollar and that they might agree to remove the collection from your credit report if you negotiate. I managed to save up and offered to pay half of what I owed if they removed the collection account from my credit report. To my surprise, the agency agreed without hesitation. This simple conversation cleared my debt and cleaned up my credit report. The key takeaway? Don’t be afraid to advocate for yourself and ask for what you need. While my experience isn’t universal, it highlights the importance of understanding your options and negotiating with collectors. Always ensure you get agreements in writing and verify the legitimacy of the collection agency. Navigating collections can be daunting, but facing the problem head-on and negotiating can sometimes lead to unexpected solutions. Read my full story on Bankrate: https://lnkd.in/gahKwvRy

There’s enticing text messages claiming that you’ve won a cash prize. There’s individuals posing as recruiters offering job interviews for a fee. There’s investment schemes, memecoins and even threats of holding a loved one hostage. These aren’t your grandparents’ financial scams. They’re modern day and cutting-edge — and advancing faster than Americans’ protective measures. Bankrate just released its newest survey, which revealed: - More than a third (34%) of Americans have experienced a financial fraud or scam in the past year, while 68% have experienced it at some point. - 3 in 10 (30%) have encountered more than one type. - Among those victims over the past year, 90% reported someone accessed or attempted to access their personal financial info, though 57% said these attempts were unsuccessful. - Another 23% paid for a phony service or sent funds to a scammer. - And almost 2 in 5 (37%) lost money, either because someone gained access to their personal or financial information or because they sent away funds. By age groups, baby boomers (39%) were the most targeted; yet, Gen Zers (53%) were the most likely to lose money. Meanwhile, 89% of Americans reported taking at least one step that could help prevent their chances of falling for fraud. Yet, 73% of those who took those preventive measures still experienced fraud at some point — suggesting that even with precautions, fraud can happen to anyone. All it takes is one time. Here's why it matters: As high interest rates and financial stress weigh on mental health, Americans might be more stressed — increasing their vulnerability at falling for a scam. The 'Great Wealth Transfer' from the baby boomer generation and regulatory shifts at the Consumer Financial Protection Bureau (CFPB) could also be emboldening scammers. What do you think about the rise in financial fraud? Have you been targeted or scammed? Share your thoughts in the comments, and read more reporting from my colleague Katie Kelton on how Americans can safeguard their finances from scammers. https://lnkd.in/gMZ_gSYD