Once tax season is over, you may want to file your most recent records and discard older records to make room for the new ones. According to the IRS, personal tax records should be kept for three years after filing your return or two years after the taxes were paid, whichever is later.* (Different rules apply to business taxes.) It might be helpful to keep your actual tax returns, W-2 forms, and other income statements until you begin receiving Social Security benefits. The rules for tax … [Read more...]
Tax Refund: Spend or Save
About 72% of taxpayers received a refund in 2018 and 2019. Here's how consumers spent the tax refunds they received in 2018 and what they planned to do with their 2019 refunds. Sources: Internal Revenue Service, 2019; National Retail Federation, 2019 (multiple responses allowed) IMPORTANT DISCLOSURES ERB FINANCIAL is an independent contractor who offers Investment Advisory Services & Securities through Excel Securities & Assoc., Inc. … [Read more...]
Federal Student Loan Borrowers Get Expanded Relief in CARES Act
“A new 6-month suspension period The massive economic stimulus legislation passed on March 27, 2020, in response to COVID-19 includes a new six-month automatic suspension of federal student loan payments, with no interest accruing during this period. The six-month period ends on September 30, 2020.” On March 27, 2020, Congress passed the CARES Act, the largest economic stimulus bill in the history of the United States, in response to the coronavirus pandemic.1 Included in the … [Read more...]
What is a college income-share agreement?
A college income-share agreement, or ISA, is a contract between a student and a college where a student receives education funding from the college today in exchange for agreeing to pay a percentage of future earnings to the college for a specified period of time after graduation. The idea behind ISAs is to minimize the need for private student loans, to give colleges a stake in their students' outcomes, and to give students the flexibility to pursue careers in lower-paying fields. Purdue … [Read more...]
Are my student loans eligible for public service loan forgiveness?
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program. The PSLF, which began in 2007, forgives the remaining balance on federal Direct Loans after you have made 120 monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Qualifying employers for PSLF include: government organizations (e.g., federal, state, local), not-for-profit … [Read more...]
Should I consider requesting a deferment or forbearance for my federal student loans?
Did you take on a large amount of debt to pay for college, and are you struggling to pay it off? If so, you are not alone. According to the Federal Reserve, 20% of individuals with outstanding student loans were behind on their payments in 2017.1You may want to consider requesting a deferment or forbearance if you are having difficulty keeping up with your federal student loan payments. Provided certain eligibility requirements are met, both a deferment and a forbearance allow you to … [Read more...]
2019 Credit Card Fee Study: What’s Normal and What’s Not?
Comparing credit card fees can help you save money. By U.S. News Staff |Jan. 29, 2019, at 11:00 a.m. (Getty Images) https://creditcards.usnews.com/articles/fee-survey Credit card fees are nearly unavoidable – every card has some. A better understanding of these fees, however, can help you select the right credit card for your needs and save money. The 2019 U.S. News Consumer Credit Card Fee Study analyzed the fees of hundreds of credit cards active in the U.S. News … [Read more...]
Take Charge of Your Student Debt Repayment Plan
If you have federal student loans, you aren't automatically eligible for an income-driven repayment plan — you have to fill out an application (and reapply each year). Outstanding student loan debt in the United States has tripled over the last decade, surpassing both auto and credit card debt to take second place behind housing debt as the most common type of household debt.1 Today, more than 44 million Americans collectively owe more than $1.4 trillion in student debt.2Here are … [Read more...]
What are some strategies for paying off credit card debt?
Nowadays, it's easier than ever to get caught up in the cycle of credit card debt. In fact, it's become a growing problem for many Americans. According to the Federal Reserve, total U.S. credit card payments reached 111.1 billion in 2016, up 7.4% from 2015. 1 If you find that you are struggling to pay down a credit card debt balance, here are some strategies that can help eliminate your credit card debt altogether: Pay off cards with the highest interest rate first. If you have more than … [Read more...]
Government Report Details Household Finances
Every three years, the Federal Reserve sponsors the Survey of Consumer Finances (SCF), which collects information on the financial state of U.S. households. The survey is one of the nation's primary sources of information on the financial condition of different types of households. Here are a few interesting observations gleaned from the most recent surveys conducted in 2013 and 2016, with the latter comparing changes during that timeframe. Income The typical household's median family income … [Read more...]
