Markus Andrews

The Federal Reserve lowered its benchmark rate by a quarter point, or 25 basis points, at the end of its two-day meeting.
This marks the third rate cut in a row — all together shaving a full percentage point off the federal funds rate since September.
Lower borrowing costs will trickle down to some consumer loans.

The Federal Reserve announced Wednesday that it will lower its benchmark rate by another quarter point, or 25 basis points. This marks the third rate cut in a row — all together shaving a full percentage point off the federal funds rate since September.
For consumers struggling under the weight of high borrowing costs after a string of 11 rate increases between March 2022 and July 2023, this move comes as good news — although it may still be a while before lower rates noticeably affect household budgets.

“Interest rates took the elevator going up in 2022 and 2023 but are taking the stairs coming down,” said Greg McBride, chief financial analyst at Bankrate.com.
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Although many people, overall, are feeling better about their financial situation heading into the new year, nearly 9 in 10 Americans think inflation is still a problem, and 44% think the Fed has done a bad job getting it under control, according to a recent survey by WalletHub.
“Add in talk of widespread tariffs, and you’ve got a recipe for uneasy borrowers,” said John Kiernan, WalletHub’s managing editor.
In the meantime, high interest rates have affected all sorts of consumer borrowing costs, from auto loans to credit cards.

December’s 0.25 percentage point cut will lower the Fed’s overnight borrowing rate to a range of between 4.25% and 4.50%. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and savings rates consumers see every day.

From credit cards and mortgage rates to auto loans and savings accounts, here’s a look at how the Fed rate reduction could affect your finances in the year ahead.

Credit cards

Most credit cards have a variable rate, so there’s a direct connection to the Fed’s benchmark. Because of the central bank’s rate hike cycle, the average credit card rate rose from 16.34% in March 2022 to more than 20% today — near an all-time high.
Since the central bank started cutting interest rates, the average credit card interest rate has only edged off extremely high levels. 
“Another rate cut is welcome news at the end of a chaotic year, but it ultimately doesn’t amount to much for those with debt,” said Matt Schulz, LendingTree’s credit analyst. “A quarter-point reduction may knock a dollar or two off your monthly debt payment. It certainly doesn’t change the fact that the best thing cardholders can do in 2025 is to take matters into their own hands when it comes to high interest rates.”
Rather than wait for small annual percentage rate adjustments in the months ahead, the best move for those with credit card debt is to consolidate with a 0% balance transfer card or a lower-interest personal loan, Schulz said.
Otherwise, ask your issuer for a lower rate on your current card — “that works way more often than you’d think,” he said.

Customers shop for groceries at a Costco store on December 11, 2024 in Novato, California. 
Justin Sullivan | Getty Images

Auto loans

Auto loan rates are also still sky-high — the average auto loan rates for used cars are at 13.76%, while new vehicle rates are at 9.01%, according to Cox Automotive.
Since these loans are fixed and won’t adjust with the Fed’s rate cut, “this is another case where taking matters into your own hands is your best move,” Schulz said.
In fact, anyone planning to finance a car may be able to save more than $5,000, on average, by shopping around for the best rate, a 2023 LendingTree report found.

Mortgage rates

Because 15- and 30-year mortgage rates are fixed and mostly tied to Treasury yields and the economy, they are not falling in step with Fed policy. 
As of the latest tally, the average rate for a 30-year, fixed-rate mortgage increased to 6.75% from 6.67% for the week ended Dec. 13, according to Mortgage Bankers Association.
“Mortgage rates have gone up — not down — since the Fed began cutting interest rates in September,” said Bankrate’s McBride.
“With expectations for fewer rate cuts in 2025, long-term bond yields have renewed their move higher, bringing mortgage rates back near 7%,” he said.

But since most people have fixed-rate mortgages, their rate won’t change unless they refinance or sell their current home and buy another property. 
Anyone shopping for a home can still find ways to save.
For example, a $350,000, 30-year fixed mortgage loan with an average rate of 6.6% would cost $56 less each month compared with November’s high of 6.84%, according to Jacob Channel, senior economic analyst at LendingTree.
“This may not seem like a lot of money at first glance, but a discount of about $62 a month translates to savings of $672 a year and $20,160 over the 30-year lifetime of the mortgage,” he said.

Student loans

Federal student loan rates are also fixed, so most borrowers won’t find much relief from rate cuts.
However, if you have a private loan, those loans may be fixed or have a variable rate tied to the Treasury bill or other rates. As the Fed cuts interest rates, the rates on those private student loans will come down over a one- or three-month period, depending on the benchmark, according to higher education expert Mark Kantrowitz.
Still, “a quarter-point interest rate cut would reduce the monthly loan payments by about $1 to $1.25 on a 10-year term, about a 1% reduction in the total loan payments,” Kantrowitz said.
Eventually, borrowers with existing variable-rate private student loans may be able to refinance into a less expensive fixed-rate loan, he said. But refinancing a federal loan into a private student loan will forgo the safety nets that come with federal loans, such as deferments, forbearances, income-driven repayment and loan forgiveness and discharge options.
Additionally, extending the term of the loan means you ultimately will pay more interest on the balance.

Savings rates

While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.
As a result of the Fed’s previous rate hikes, top-yielding online savings account rates have made significant moves and are still paying as much as 5% — the most savers have been able to earn in nearly two decades — up from around 1% in 2022, according to Bankrate.
“The prospect of the Fed moving at a slower pace next year is better news for savers than for borrowers,” McBride said. “The most competitive yields on savings accounts and certificates of deposit still handily outpace inflation.”
One-year CDs are now averaging 1.74%, but top-yielding CD rates pay more than 4.5%, according to Bankrate, nearly as good as a high-yield savings account.

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As the calendar turns to 2025, many Americans want to improve their finances in the New Year.
Paying down debt is a top financial goal, one recent survey found.
To successfully get those balances down for good, it helps to shift your priorities, experts say.

Skynesher | E+ | Getty Images

When it comes to financial resolutions for 2025, there’s one goal that often lands on the top of the list — paying down debt, according to a new survey from Bankrate.
That’s as a majority of Americans — 89% — say they have a main financial goal for 2025, the November survey of almost 2,500 adults found.

While paying down debt came in as a top goal, with 21%, other items on Americans’ financial to-do lists include saving more for emergencies, with 12%; getting a higher paying job or additional source of income, 11%; budgeting and spending better, 10%; saving more for retirement and investing more money, each with 8%; saving for non-essential purchases, 6%; and buying a new home, 4%.
Those goals cap off a year that had some financial challenges for consumers. Some prices remain elevated, even as the pace of inflation has subsided. As Americans grapple with higher costs, credit card debt recently climbed to a record $1.17 trillion. The average credit card debt per borrower rose to $6,380 in the third quarter, according to TransUnion.

Lower interest rates may help reduce the costs of holding that debt. The Federal Reserve moved on Wednesday to cut rates for the third time since September, for a total reduction of one percentage point.
Yet the best-qualified credit card borrowers — those with superior credit scores — still have an average rate of 20.35%, down from around 20.79% in August, according to Mark Hamrick, senior economic analyst at Bankrate.
“It could be injurious to personal finances if people accumulated debt that they’re not substantially paying down,” Hamrick said. “It’s prudent and heartening to see that people are identifying debt broadly as something they want to address in the coming year.”

‘The Fed isn’t the cavalry coming to save you’

To pay down credit card balances — as well as other debts from auto loans or other lines of credit — individuals may need to shift their financial priorities.
A majority of Americans admit to having bad financial habits, finds a recent survey from Allianz Life Insurance Company of North America.
That includes 30% who admit to spending too much money on things they don’t need; 28% who don’t save any money; 27% who only save some money; 23% who aren’t paying down debt fast enough; and 21% who spend more than they earn.
For debtors who want to pay their balances down, the best approach is to take matters into their own hands, said Matt Schulz, chief credit analyst at LendingTree.
“Even though the Fed is reducing rates, the Fed isn’t the cavalry coming to save you,” Schulz said.
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Asking your credit card company for a more competitive interest rate on your debt often works, according to Schulz. About 76% of people who asked for that in the past year got their way, LendingTree found.
“It’s absolutely worth a call,” he said.
Moreover, balance holders also may keep an eye out for 0% transfer offers, which can let them lock in a no-interest promotion for a fixed amount of time, although fees may apply. Or they may consider a personal loan to help consolidate their debts for a lower rate.
Even as debtors prioritize those balances, it’s still important to prioritize personal savings, too. Experts generally recommend having at least three to six months’ living expenses set aside in case of an emergency. That way, there’s a cash cushion to turn to in the event of an unexpected car repair or veterinary bill, Shulz said.
Admittedly, by also prioritizing savings, it will take more time to pare down debt balances, he said. But having savings on hand can also help stop the debt cycle for good. More

The price of bitcoin sailed past $100,000 in early December and was still up more than 130% year-to-date, as of Dec. 18.
Some investors now have large bitcoin positions, but could rebalance to better align with their goals, risk tolerance and timeline.
However, you’ll need to consider capital gains taxes when selling from a brokerage or exchange.

Hispanolistic | E+ | Getty Images

Many investors are likely still deciding whether to stay in bitcoin or reduce their profits from the last bull run to new all-time highs.
So, after a strong year for bitcoin, it could be time for investors to weigh rebalancing their portfolio by shifting assets to align with other financial goals, according to financial experts.    

The price of the flagship digital currency sailed past $100,000 in early December and was still up more than 130% year-to-date, as of Dec. 18. 
Some investors now have large bitcoin allocations — and they could have a chance to “take some risk off the table,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.
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“The golden rule of ‘never invest more than you’re willing to lose’ comes into play, especially when we’re talking about speculative assets,” said Boneparth, who is also a member of CNBC’s Financial Advisor Council.
Before using bitcoin profits to buy other investments, you may consider using the gains to fund another financial goal, like retiring early or buying a home, he said.  

Decide on your ‘line in the sand’

There’s a different thought process if you want the money to stay invested, Boneparth said.
Typically, advisors pick an asset allocation, or mix of investments, based on a client’s goals, risk tolerance and timeline.
Often, there’s a “line in the sand” for the maximum percentages of a single asset, he said.  
Typically, Boneparth uses a maximum of 20% of a client’s “investable net worth,” which doesn’t include a home, before he starts trimming allocations of one holding.

‘There’s no free lunch’ with taxes

When selling crypto in a brokerage account or exchange, you could owe taxes on growth, depending on how long you’ve owned the asset, Boneparth said. 
“There’s no free lunch,” he said. “Just because it’s crypto doesn’t mean you’re exempt from paying taxes on your gains.”
You’ll owe regular income taxes on profits from crypto owned for one year or less. But you’ll trigger long-term capital gains — taxed at 0%, 15% or 20% — on profitable assets owned for more than one year. 

However, you could harvest crypto gains tax-free if you’re in the 0% long-term capital gains bracket for 2024, experts say.
For 2024, you’re eligible for the 0% rate with taxable income of $47,025 or less for single filers and $94,050 or less for married couples filing jointly. These amounts include any gains from crypto sales.
“That’s a very effective strategy if you’re in that bracket,” Andrew Gordon, a tax attorney, certified public accountant and president of Gordon Law Group, previously told CNBC.
The 0% capital gains bracket may be bigger than you expect because it’s based on taxable income, which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income. More

The Senate is poised to vote to eliminate certain Social Security rules that limit benefits for some public workers.
Here are answers to some common questions about what the changes would mean.

Blank Social Security checks are run through a printer at the U.S. Treasury printing facility February 11, 2005 in Philadelphia, Pennsylvania.
William Thomas Cain | Getty Images

During the Senate’s final days of business in this congressional session, it is expected to vote on a bill that would change certain Social Security rules.
The bill — the Social Security Fairness Act — would repeal provisions that reduce Social Security benefits for some individuals who also receive pension income from jobs in the public sector.

On Nov. 12, the House of Representatives passed the bill with the support of members of both sides of the aisle.
Now, it is up to the Senate to pass the bill amid a packed schedule that also includes a deadline to avoid a federal government shutdown.

What Social Security rules would be repealed?

The Social Security Fairness Act would eliminate certain rules affecting some public pensioners — the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO.
The WEP reduces Social Security benefit payments for individuals who also receive income from noncovered pensions — payments from employers who did not withhold Social Security taxes from their salaries.
The GPO adjusts Social Security spousal or widow(er) benefits for people who receive income from noncovered pensions.

Both rules have been in effect for decades.
The WEP was enacted in 1983 to make it so workers with noncovered pensions were not reimbursed as though they were long-time low-wage earners. Social Security has a progressive benefit formula, which means low earners receive a higher income replacement rate.
The Government Pension Offset was established in 1977 and reduces Social Security benefits for spouses and surviving spouses who receive a pension based on their own government work that wasn’t subject to Social Security payroll taxes and Social Security spousal benefits based on their spouse’s work record.

Who is — and isn’t — affected by the rules?

The WEP affected 2.01 million individuals — or 3.1% of all Social Security beneficiaries — as of 2022, according to the Social Security Administration.
The GPO applied to almost 735,000 beneficiaries as of 2022, according to the Social Security Administration. That rule affects about 1% of all beneficiaries, according to previous estimates from the Congressional Research Service.  
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To be sure, the WEP and GPO do not apply to everyone.
Specifically, the WEP doesn’t affect beneficiaries who have 30 or more years of substantial earnings under Social Security. The rule also doesn’t apply to individuals who fall under other specific categories, according to the Social Security Administration: federal workers who were first hired after Dec. 31, 1983; employees of nonprofit organizations that were exempt from Social Security coverage as of Dec. 31, 1983; individuals who only receive pension income for railroad employment; and individuals whose only work that didn’t include Social Security taxes was before 1957.
The GPO generally doesn’t affect spouses or surviving spouses who receive government pensions not based on their earnings or who are federal, state or local government employees whose pension is from employment where they paid Social Security taxes.
The Social Security Administration provides a tool on its website to help estimate how a pension may affect Social Security benefits.

What are the chances the bill will pass?

Last week, Senate Majority Leader Chuck Schumer, D-N.Y., said he would put the Social Security Fairness Act up for a vote.
The House bill was introduced Reps. Abigail Spanberger, D-Va., and Garret Graves, R-La. The Senate version was co-led by Sens. Sherrod Brown, D-Ohio, and Susan Collins, R-Maine.
Schumer has since filed a notice that he intends to call a cloture vote on the motion to proceed this week. If the cloture vote to proceed has the necessary 60 votes, the rest of the process may go “fairly quickly,” said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare.
“The big vote is usually the motion to proceed,” Freese said. “If they can get 60 for that, then they should be in pretty good shape to get it done this year.”
A Senate version of the bill has 62 co-sponsors. However, there is no guarantee the bill will get 62 votes, Freese said. Two co-sponsors — Sens. Bob Menendez, D-N.J., and Dianne Feinstein, D-Calif. — are no longer in office. However, their successors — Sens. Andy Kim, D-N.J., and Adam Schiff, D-Calif. — both supported the bill when they were House members.
Yet another co-sponsor — Vice President-elect and current Sen. JD Vance, R-Ohio — may not be present to vote, Freese said.
Once a motion to proceed passes, amendments to the bill could be proposed if Senate leadership allows for it, said Emerson Sprick, associate director of economic policy at the Bipartisan Policy Center. Those amendments could seek to replace a full repeal of the rules with a different fix or to offset the cost of the benefit increases.
“It has not been the ideal process for a significant change to Social Security to go through,” Sprick said.
The co-sponsors of the House bill had to file a discharge petition to bring it to the floor for a vote, which means it didn’t go through committees. Similarly, lawmakers in the Senate have not had the opportunity to hear the drawbacks of a full repeal of the rules and the alternatives, Sprick said.
“Full repeal makes the program less fair and more financially insecure,” Sprick said.

How soon would affected beneficiaries see changes in their benefit checks?

The change for nearly 3 million Social Security beneficiaries may take time to implement, according to Freese.
The Social Security Administration, which is already short-staffed, may lose another 2,000 employees if it does not get the additional funding it requested in the continuing resolution Congress is also working to finalize, she said.
Moreover, it would take time for the agency’s staff to reprogram its computers and then begin sending out the new benefit payment amounts.

If the change is not put into effect immediately, the Social Security Administration will likely retroactively send catch-up checks or deposits to make up for the difference, Freese said.

How will the bill affect other Social Security reform?

The Social Security Fairness Act has received strong support from groups representing firefighters, police, teachers and other government employees who would be affected by the repeal of these rules.
However, policy experts have generally voiced opposition to the change, since nixing the rules would alter the progressive nature of the program.
It would also move Social Security’s projected trust fund depletion date to six months sooner, while costing about $196 billion over a decade, according to the Committee for a Responsible Federal Budget.
Even without this change, the trust fund the program relies on to pay retirement benefits may run out in nine years, the program’s trustees have projected.
“We are racing to our own fiscal demise,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement criticizing the efforts to repeal the WEP and GPO rules.
If the bill passes, it would also affect future reform efforts. But the problems Social Security now faces are bigger than just paying for the WEP and GPO repeal, Freese said.
“The closer it gets to the depletion date, the harder it gets, because you end up having less flexibility in terms of what you can do for the program in order to make it solvent,” Freese said. “You have less time to implement the changes.”

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Four out of the 10 “housing hot spots” for 2025 are located in the South, according to the National Association of Realtors.
While the NAR did not rank the hot spots, the metro area comprising Greenville and Anderson, South Carolina, stands out, according to the report.

Eyecrave Productions | E+ | Getty Images

Buying a house is not easy or cheap, especially in today’s market. 
But while it’s too soon to tell whether the housing market is going to favor buyers or sellers next year, some areas will offer more favorable market conditions than others, according to a new report by the National Association of Realtors.

The NAR identified 10 top metro areas as “housing hot spots” for 2025 based on a variety of economic, demographic and housing factors. 
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“Important factors common among the top performing markets in 2025 include available inventory at affordable price points, a better chance of unlocking low mortgage rates, higher income growth for young adults and net migration into specific metro areas,” Lawrence Yun, NAR chief economist and senior vice president of research, said in a statement.

The top 10 ‘housing hot spots’

“2025 is expected to be a year of more opportunities” for both homebuyers and sellers, said Nadia Evangelou, senior economist and director of research at the NAR. 
Four out of the NAR’s 10 “hot spots” are located in the South — although unlike those on other lists, none are in Florida. Three of the list’s hot spots are in the Midwest.

Here’s the full NAR list:

Boston-Cambridge-Newton, Massachusetts-New Hampshire
Charlotte-Concord-Gastonia, North Carolina-South Carolina
Grand Rapids-Kentwood, Michigan
Greenville-Anderson, South Carolina
Hartford-East-Hartford-Middletown, Connecticut
Indianapolis-Carmel-Anderson, Indiana
Kansas City, Missouri-Kansas
Knoxville, Tennessee
Phoenix-Mesa-Chandler, Arizona
San Antonio-New Braunfels, Texas

While the NAR did not rank the hot spots, the metro area comprising Greenville and Anderson, South Carolina, stands out, according to the report.
Factors such as a positive financing environment, strong migration gains, better affordability for first-time buyers, strong job creation and home price appreciation highlight the area, said Evangelou. About 42% of properties in the area are starter homes.

‘Unprecedented times’

While “a lot of these areas have been growing in recent years,” it’s important to remember that “we could potentially be walking into some pretty unprecedented times in 2025 and beyond,” said Jacob Channel, senior economist at LendingTree.
President-elect Donald Trump has been vocal about enacting ideas such as mass deportations and tariffs on all imports, as well as ending the conservatorship of Fannie Mae and Freddie Mac, he said. 
If enacted, such ideas could have domino effects into housing affordability. Immigrants make up about a third, or 32.5%, of construction tradesmen, according to an analysis of 2023 Census data by the National Association of Home Builders.
Change in immigration policy could affect the sector’s labor force. What’s more, with a shortage of workers, wages might go up and be passed on to buyers through higher home prices, experts say. More

For 2025, you can defer up to $23,500 into 401(k) plans, up from $23,000 in 2024, and workers age 50 and older can save an extra $7,500.
But starting next year, the catch-up contribution for workers ages 60 to 63 will rise to $11,250, which brings their total deferral limit to $34,750.
Experts suggest boosting 401(k) contributions now to maximize higher limits for 2025.

Fcafotodigital | E+ | Getty Images

If you’re eager to save more for retirement, it’s not too early to boost 401(k) plan contributions for 2025, financial experts say.
For 2025, you can defer up to $23,500 into 401(k) plans, up from $23,000 in 2024. For workers age 50 and older, the 401(k) catch-up contribution remains at $7,500 for 2025.

But there is a “super funding” opportunity for 401(k) catch-up contributions for a subset of savers, according to Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.
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Enacted via Secure 2.0, the 2025 catch-up contribution limit will increase to $11,250 for employees ages 60 to 63, which brings the 401(k) deferral total to $34,750 for these investors.  
“Probably no one knows about the extra increase,” and it could take time before the general public is aware of the new opportunity, said Boston-area CFP and enrolled agent Catherine Valega, founder of Green Bee Advisory.
However, boosting contributions later could still be beneficial for savers in this age range, experts say.

Increase 401(k) deferrals for 2025 now

If you plan to adjust 401(k) deferrals for 2025, “now is the time to be doing it,” Valega said.
Typically, it takes a couple of pay periods for 401(k) contribution changes to go into effect, and you could miss some higher contributions in January by waiting, she said.
If you miss bigger deposits early, you can still max out your plan by boosting deferrals later in the year. But higher percentages can “impact cash flow more than people are typically willing to do,” Valega said. 

Lucas said he updated next year’s 401(k) contributions for his clients in early December.
“It’s already set for next year,” he said. “We’re on pace, starting with the first payroll.”

Of course, many workers cannot afford to max out their 401(k) plan every year.Roughly 14% of employees maxed out 401(k) plans in 2023, according to Vanguard’s 2024 How America Saves report, based on data from 1,500 qualified plans and nearly five million participants. More

With the Federal Reserve’s recent cuts to interest rates, more federal student loan borrowers are wondering if they should refinance.
The Consumer Financial Protection Bureau has new warnings for borrowers about the federal loan forgiveness opportunities they’ll forfeit.

Ivan Pantic | E+ | Getty Images

With the Federal Reserve’s recent moves to lower interest rates — and further cuts on the horizon — some federal student loan borrowers are wondering if now is a good time to refinance.
“We are already seeing more borrowers tempted to refinance their federal loans,” said Betsy Mayotte, president of The Institute of Student Loan Advisors.

Refinancing your federal student loans turns them into a private student loan and transfers the debt from the government to a private company. Borrowers usually refinance in search of a lower interest rate.
But the Consumer Financial Protection Bureau has new warnings about refinancing student debt.
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In a report published Monday, the CFPB said that private lenders use “deceptive” practices in their marketing and disclosure materials, misleading student borrowers about a key pitfall of refinancing: those who do so lose access to federal student loan forgiveness options.
“Companies break the law when they mislead student borrowers about their protections or deny borrowers their rightful benefits,” said CFPB Director Rohit Chopra. “Student loan companies should not profit by violating the law.”

Federal forgiveness chances dashed with refinancing

Some private lenders give the wrong impression “that refinancing federal loans might not result in forfeiting access to federal forgiveness programs, when, in fact, it was a certainty,” the CFPB report says.
The federal government offers a range of student debt forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness.
PSLF allows certain not-for-profit and government employees to have their federal student loans cleared after 10 years of on-time payments. Under TLF, those who teach full time for five consecutive academic years in a low-income school or educational service agency can be eligible for loan forgiveness of up to $17,500. These options are not available to private student loan borrowers.
Borrowers refinancing would also not be eligible for one-off forgiveness efforts like President Joe Biden’s Plan B.
Private student loan borrowers who are struggling to pay their bills don’t have a right to an income-driven repayment plan, either.
IDR plans allow federal student borrowers to pay just a share of their discretionary income toward their debt each month. The plans also lead to debt forgiveness after a certain period.

Borrowers who refinance their student loans lose access to these federal relief options, the CFPB said.
And this has cost borrowers.
“The lenders profited from borrowers paying the full amount of their loans, when the borrowers otherwise potentially could have had some or all of those loans forgiven,” the bureau wrote in its report.
Lenders do inform borrowers of what benefits they may give up by making moves like refinancing, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for student loan servicers.
Buchanan said the government’s changing promises around student loan forgiveness has led to a lack of clarity. (Republican-led legal challenges have stymied the Biden administration’s efforts to deliver wide-scale student loan forgiveness to borrowers.)
“That volatility and confusion is something the Bureau needs to take up with the Department of Education,” Buchanan said.
But the federal government’s long-standing student loan forgiveness programs and other relief measures are reasons alone to think twice before refinancing, Mayotte said.
“We almost always very strongly recommend against it,” she said.

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ETF Strategist

ETF Street
ETF Strategist

Crypto has soared since the November presidential election.
Many financial advisors are reluctant to recommend crypto.
A July survey found 59% of advisors do not use cryptocurrency or plan to in the future.
Most financial advisors agree that whether to have crypto investments in your portfolio depends on your risk tolerance, financial goals and time horizon.

Digital assets have rallied since the November U.S. presidential election — with bitcoin notching a new high above $107,000 on Monday — and continue to gain ground as President-elect Donald Trump details his pro-cryptocurrency policy plans. 
Still, many financial advisors remain wary. 

“As traditional long-term planners, we currently do not incorporate crypto in our portfolio allocations,” said certified financial planner Marianela Collado, CEO of Tobias Financial Advisors in Plantation, Florida. She is also a certified public accountant. “We always advise our clients to put in crypto what you’re not necessarily needing for retirement, what you’re comfortable losing.”

More from ETF Strategist:

Here’s a look at other stories offering insight on ETFs for investors.

Regulatory uncertainty remains a clear area of concern for financial advisors when it comes to recommending crypto investments to clients.
In April, when crypto prices were lower, an annual survey of 2,000 financial advisors by Cerulli Associates found that 59% do not currently use cryptocurrencies or plan to in the future. Another 26% said they do not use it now but expect to in the future. 
Meanwhile, about 12% of advisors said they use cryptocurrencies based on clients’ requests, according to the Cerulli report, and less than 3% of advisors said they use crypto based on their own recommendations.

ETFs are an ‘easy solution’ to add crypto

If investors are interested in crypto, CFP Ashton Lawrence at Mariner Wealth Advisors in Greenville, South Carolina, advises many clients to use exchange-traded funds.

“It’s truly depending upon what the client is looking to achieve and how easy they feel in navigating this market,” he said. “If they’re looking for an easy solution, ETFs might be the best way to go.”
Spot bitcoin ETFs, first available in January, now have more than $100 billion in assets under management, which is about 1% of the overall ETF market.
“Bitcoin ETFs have become the vehicle of choice for bitcoin holders,” Brian Hartigan, global head of ETFs at Invesco, said during CNBC’s “Halftime Report” on Dec. 9.

Lawrence recommends clients interested in crypto limit the allocation to no more than 1% to 5% of their overall portfolio.
Most financial advisors agree that whether to have crypto investments in your portfolio depends on your risk tolerance, financial goals and time horizon. More