Investing

ETF Strategist

Millennial investors who hold exchange-traded funds allocate more heavily to bonds and cash in their portfolios relative to older generations, according to a Charles Schwab survey.
That tendency isn’t aligned with their long investment time horizon.
They should generally hold less fixed income and more stock funds compared with Generation X and baby boomers.

Eva-katalin | E+ | Getty Images

Millennials are holding and buying bond exchange-traded funds with more gusto than older investors — and that’s likely not an ideal strategy, experts said.
Millennial ETF investors — a cohort born between the early 1980s and mid-1990s — have 45% of their investment portfolios allocated to fixed income, on average, according to a recent Charles Schwab survey.

That’s a higher allocation than Generation X and baby boomers, who had respective allocations of 37% and 31%.
Additionally, 51% of millennials plan to invest in fixed income ETFs in the next year, more than the 45% of Gen X and 40% of boomers, the Schwab poll found.
That millennials would opt to hold more bonds — and therefore be more conservative than older investors — doesn’t jibe with their typically longer investment time horizon, said Ted Jenkin, a certified financial planner and CEO and founder of oXYGen Financial, based in Atlanta.

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Millennials investing for the long term can afford to — and generally should — take more risk than older investors by allocating relatively heavily to stocks. That’s because stocks typically outperform bonds over decades, said Jenkin, a member of CNBC’s Advisor Council.
“Millennials in their 30s probably shouldn’t have 45% of their allocation in bonds,” Jenkin said.

As a general guideline, he recommends adopting the “Rule of 120”: Subtract your age from 120 to get a rough sense of an appropriate stock allocation. For example, using this rule of thumb, a 35-year-old would hold 85% of their investment portfolio in stocks, and the remaining 15% in fixed income.

Why millennials gravitate toward bonds

There are a few likely reasons for millennials’ more conservative stance, experts said.
For one, they could be letting emotions guide investment choices. Many millennials, for example, had just started investing around the 2008 financial crisis, when the S&P 500 U.S. stock index lost 57% of its value.
The oldest millennials also likely still remember the dot-com boom and bust from their teen years and graduated high school or college at a time when unemployment was high and finding a job was difficult, said David Botset, head of strategy and product at Schwab Asset Management.

Such experiences have had cascading effects and led millennials to be more conservative investors, Botset said.
Investors have a behavioral bias toward avoiding financial loss, known as “loss aversion bias.” But that impulse can cause financial harm in the long run. Stocks serve as the typical growth engine of an investment portfolio and holding too few relative to your time horizon may mean losing out on future retirement income, for example.
Millennials may also be taking a more conservative investment stance because of current high interest rates, which mean bonds and cash are paying better rates than they have in years, Jenkin said. A safer fixed income investment paying a 5% annual return may sound like a good proposition versus stocks right now, though bonds have historically underperformed stocks over the long haul, Jenkin said.Don’t miss these stories from CNBC PRO: More

Your Money

Single mothers face high rates of financial insecurity.
“It can be very challenging to raise kids on one income,” said Cathy Curtis, founder and CEO of Curtis Financial Planning in Oakland, California.
She and other experts shared financial tips for single mothers.

A mother carrying her young son and looking down a suburban road in spring sunlight.
Christopher Hopefitch | The Image Bank | Getty Images

Single mothers face high rates of financial insecurity.
Between 2021 and 2022, as pandemic-era aid dried up, the poverty rate for families headed by one woman soared to nearly 27% from 12%, according to the National Women’s Law Center. More than 33% of single mother-led households reported food insecurity in 2022, the U.S. Department of Agriculture found.

“It can be very challenging to raise kids on one income,” said Cathy Curtis, founder and CEO of Curtis Financial Planning in Oakland, California.

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Experts shared these 3 financial tips for single mothers.

1. Make budgeting and saving automatic

It may be helpful for single mothers with young children and high childcare costs to keep in mind that “the years go by fast and those expenses will taper off over time,” said Curtis, who is also a member of the CNBC FA Council.
Make a list of all your fixed expenses, including a mortgage payment, rent, insurance, debt obligations and utilities. Then, to save yourself stress and time, Curtis recommends setting up automatic payments for these expenses. That’ll be one less thing you have to do each month, she said.
After accounting for fixed expenses, Curtis said, “closely monitor and budget for variable and miscellaneous expenses.”

“Keeping a tight rein on these expenses helps in preventing overspending,” she said.

You also want to make sure you’re preparing for your future, said Jennifer Bush, a certified financial planner with Mainstreet Financial Planning in San Jose, California.
“It would be great if they paid themselves first out of each paycheck,” Bush said. Ideally, that would include putting aside money in a rainy-day fund and saving for old age.
Don’t despair if you can’t salt away much, experts say. Research shows even a small increase in your retirement savings rate can be powerful.
For someone age 35 who is making $60,000 a year, boosting their retirement saving contribution by 1% (or less than $12 a week), could generate an additional $110,000 by retirement, assuming a 7% annual return, according to an example provided by Fidelity Investments.

2. Don’t hold back with your work

Too often, single mothers carry around guilt or anxiety about going to work, said Emma Johnson, a financial journalist who runs the popular blog WealthySingleMommy.com.
“Kids actually thrive when they have parents work outside the home,” Johnson said. “Girls achieve more academically and professionally.”
Keep pursuing a big job or promotion, even if it means you’ll be home a bit less, Johnson said. Don’t rule out going back to school, either, if a degree or training might result in better career prospects.

A layoff, of course, would hit a single-parent household especially hard. To manage fears and be prepared for such a scenario, Curtis recommends single mothers take some additional precautions.
You can enhance job security, she said, “by continuously updating  skills and maintaining a solid professional network.”
You may also want to have some other ideas for generating money in case of a period of unemployment, Curtis said, such as freelancing or part-time work. Even if you’re happy at your job, it can’t hurt to look for these alternative sources of income now.

3. Learn to lean on others

“If you’re a single parent, ask for help,” Johnson said. Consider turning to relatives, friends, other parents or neighbors for support with picking up or dropping off your children from school or different activities, babysitting, cooking and more, she said.
Single mothers may find relief and support in joining a group for women in a similar position, Curtis added.
Meanwhile, she also recommended a number of financial blogs, including Johnson’s, NYC Single Mom, the Single Mom Blog and Beanstalkmums.com.au. For podcasts, Curtis pointed to Single Moms on the Money and Like a Mother.
Those who are really struggling should see if they qualify for any federal, state or local benefits, Johnson said. More

If you received business payments via apps such as PayPal and Venmo in 2023, you will not be subject to a lower threshold for 1099-K tax reporting.
For 2023, the old limit of more than 200 transactions worth an aggregate above $20,000 will remain in place.  
However, the IRS will implement a $5,000 limit for tax year 2024, applying to returns filed in 2025.

IRS Commissioner Daniel Werfel testifies before a Senate Finance Committee hearing on Feb. 15, 2023.
Kevin Lamarque | Reuters

If you received business payments via apps such as PayPal or Venmo or e-commerce companies such as eBay, Etsy or Poshmark in 2023, your tax return may now be a little less complicated.
The IRS announced Tuesday that 2023 would be a “transition year” for a new tax reporting requirement affecting such payments. Once in place, it will trigger Form 1099-K for just $600 in payments, even if that income stemmed from a single business transaction.

For 2023, the old limit of more than 200 transactions worth an aggregate above $20,000 will remain in place. The agency will phase in the lower threshold by adding a $5,000 limit for 2024, but it didn’t specify a transaction limit. The $5,000 limit will apply to tax returns filed in 2025.
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The $600 threshold will go into effect for tax year 2025, and taxpayers over the limit can expect to receive a 1099-K at the beginning of 2026.
However, business payments have always been taxable and filers should still report 2023 income even if they don’t receive a Form 1099-K.
“We spent many months gathering feedback from third-party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” IRS Commissioner Danny Werfel said in a statement.

The agency said it also plans on updates for Form 1040, which is used by taxpayers to file individual income tax returns, and related schedules, to “make the reporting process easier.”

“Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040,” Werfel said. “It’s clear that an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area.”
The announcement comes amid bipartisan scrutiny of the reporting requirement, with lawmakers and industry professionals citing concerns about taxpayer confusion. Prior to the delay, the IRS was expecting an estimated 44 million 1099-Ks for 2023. More

Year-end Planning

A new law limiting how much Medicare enrollees pay for out-of-pocket prescription drug costs is set to get phased in starting in 2025.
For retirees, that will contribute to higher Medicare Part D premiums in 2024, new research finds.

Fatcamera | E+ | Getty Images

A new law is poised to cap seniors’ prescription drug costs covered under Medicare, starting in 2025.
But retirees may be in for a shock next year — significantly higher Medicare Part D premiums for prescription drug coverage.

The cost of the average premiums will rise between 42% and 57% in 2024 compared to 2023 in five states with the largest populations of individuals over 65 who are on Medicare, according to a new analysis by HealthView Services, a provider of health care cost data.
That represents an increase ranging from $128.32 to $380.96 from 2023 to 2024, according to the firm. The calculations are based on three of the largest Medicare providers in each state.
The five states include California, Florida, New York, Pennsylvania and Texas.
The increased costs come as new changes put into law through the Inflation Reduction Act will lower the out-of-pocket maximum drug costs for seniors to $2,000 in 2025, down from more than $7,000 in 2023.
Other changes put into place with the legislation — such as a $35 monthly cap on insulin and access to free vaccines — have already gone into effect.

Insurers may pay higher costs due to the higher out-of-pocket limits, and higher premiums is a way of getting beneficiaries to share that burden, according to Ron Mastrogiovanni, founder & CEO of HealthView Services.
Today, the federal government picks up 80% of the more than $7,000 maximum spent on Part D prescription drugs, while insurers cover the remaining 20%, Mastrogiovanni said.
When the out-of-pocket max drops to $2,000, insurers will cover 60% to 80% of the costs, with the federal government picking up the difference. 
About a quarter of Medicare Part D beneficiaries are expected to go over that $2,000 limit.
“The insurance company has to do to do something to make up for that loss, given the number of people that may go over,” Mastrogiovanni said.
“Therefore, we who are on Medicare Part D are going to be sharing in that cost,” he said.
Research from KFF, an independent provider of health policy research, has also found monthly premiums for Part D will be “substantially higher” in 2024. The national average monthly Part D premium is projected to increase 21% in 2024 to $48, up from $40 in 2023, according to KFF.

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Those monthly premiums may increase again in 2025 as the new policy takes effect, according to Juliette Cubanski, deputy director of KFF’s program on Medicare policy.
“It’s possible that between 2024 and 2025 we could also see another round of premium increases again,” Cubanski said.
That would be a bigger concern for people who are in standalone drug plans, she noted, than for people who are in Medicare Advantage plans, which have rebates available that can help shield enrollees from higher premiums costs.

Higher Medicare costs to offset Social Security COLA

Rising Medicare Part D premiums come as retirees will receive a much smaller Social Security cost-of-living adjustment in 2024 — 3.2% — compared to the 8.7% boost to benefits they received in 2023.
The average Social Security beneficiary will get about $700 more per year in 2024 through the cost-of-living adjustment, estimates Michael Daley, director of marketing at HealthView Services.
But higher costs for next year, particularly with regard to Medicare, may consume most of that increase.
“If you are on a high-end Part D plan, on average, 54% of your cost of living increase in Social Security is going to go for paying the additional costs that you’re going to have to cover for Part D premiums,” Daley said.
That’s as standard premiums for Medicare Part B, which covers services from doctors and other health care providers, will increase by $9.80 per month to $174.70 in 2024, from $164.90 per month this year. High-income beneficiaries will pay higher premiums.

How to manage rising Medicare costs

With Medicare open enrollment available through Dec. 7, beneficiaries may take steps now to mitigate the higher expected costs for next year.
Aside from premium changes, plans may also shift the prescription drugs they cover and the cost-sharing amounts they charge, Cubanski noted.

“It’s always good advice during this open enrollment period for people, even if they’re happy with the coverage that they have, just to take a look at other options and see whether they might be able to get better coverage,” Cubanski said.
Finding the best coverage for your budget can help you avoid having to cut back on prescription drugs or doctors’ visits, according to Mastrogiovanni.
Medicare beneficiaries should also be aware that a 12% annual premium penalty applies for those who don’t sign up for prescription drug coverage at age 65, he said.
“Even if you’re not on any drugs and you’re going into retirement, I strongly recommend purchase the least expensive plan you can,” Mastrogiovanni said. More

This year, holiday spending from Black Friday to Cyber Monday may hit a record as consumers try to maximize the weekend’s deals.
Stores try to tempt you with discounts, but these are not necessarily the best prices of the year, according to shopping experts.
Here’s what not to buy on Black Friday and how to snag the lowest price overall.

By most accounts, Black Friday and Cyber Monday promise some of the lowest prices of the season.
And in 2023, more people than ever plan to take advantage of the five-day shopping event that begins on Thanksgiving Day and continues through the following Monday, according to the National Retail Federation’s annual survey.

This year, holiday spending during the Thanksgiving week may hit a record as consumers try to maximize the weekend’s sales, a separate Deloitte Black Friday-Cyber Monday survey found. 
However, these are not necessarily the best deals of the year, according to Julie Ramhold, a consumer analyst at DealNews.com.
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According to WalletHub’s holiday shopping survey, 35% of items at major retailers will offer no savings compared to their pre-Black Friday prices.
A separate analysis of previous Black Friday sales found that 98% of the deals were the same price or cheaper at other points during the year. None were cheaper on Black Friday alone.

Stores try to tempt you with discounts, but “I don’t know that Black Friday has the same level of value that it did years ago,” Ramhold said.

What not to buy on Black Friday

Typically, Black Friday is a great time to find rock-bottom prices on fall clothing — including flannels, denim, boots and accessories — and televisions, like a Samsung 75″ smart TV now on sale for less than $600 at Best Buy. 
This year, there are also particularly good deals on smartphones, including Apple’s newest, iPhone 15, Ramhold found.
With toys, however, it could pay to hold out until those items are further discounted later in the season. “Unless it’s one of the hottest toys, which may sell out, you can wait until December,” Ramhold advised.

Exercise equipment, cosmetics, jewelry and bedding tend to be marked down more in January, while furniture and mattress deals are often better over other holiday weekends throughout the year, such as Presidents’ Day, Memorial Day and Labor Day weekends, Ramhold said.
Some discounts may have already come and gone. Promotions across a range of categories, including apparel, appliances and computers, were significantly higher in October this year than in the same month in 2021 and 2022, data from Adobe Analytics shows.

How to get the lowest prices of the season

A Black Friday sale sign in the cosmetics and fragrance department of the Macy’s flagship store in New York, US, on Friday, Nov. 25, 2022.
Jeenah Moon | Bloomberg | Getty Images

A price-tracking browser extension such as CamelCamelCamel or Keepa can help you keep an eye on price changes and alert you when a price drops. Honey will alert you to lower prices elsewhere and scan for applicable coupon codes.
Consumer-savings expert Andrea Woroch recommends stacking discounts, for example, combining credit card rewards with store coupons and then using a cash-back site such as CouponCabin.com or Rakuten to earn money back on those purchases.
Finally, take pictures of your receipts using the Fetch app and earn points which can then be redeemed for gift cards at retailers such as Walmart, Target and Amazon.
For more on Black Friday sales, check out NBC Select’s recent roundup of the best early Black Friday deals. More

Your Money

We all know divorces are not uncommon in the U.S.
Some of the most public splits over the years have included those of celebrities such as Johnny Depp and Amber Heard, Jennifer Lopez and Marc Anthony, Katie Holmes and Tom Cruise, and most recently, Joe Jonas and Sophie Turner.

In 2021, there were nearly 700,000 divorces — both celebrity and not — across the 45 states that gather this data. During that same time, there were about 2 million marriages.
But not everyone has the financial stability of a movie star. And divorces don’t come cheap.
An uncontested divorce can cost between $1,500 and $5,500 on average, while a contested one can set you back anywhere from $40,000 to $140,000, according to Elizabeth Douglas, founding attorney and CEO of Douglas Family Law in New York. If the case goes to trial, Douglas said, the cost can be even higher.

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“The more complex it is, the more hours that are required: hours by the lawyers, hours by the appraisers, the business evaluators, the crypto hunters, the forensics, the forensic accountants, the forensic psychologists, whatever it may be,” she added.

Divorce entails big financial, life changes

With divorce comes a lot of life changes — significant ones.

Typically that means one home turning into two, and the same goes for the electricity, cable, internet, grocery bills and cars, in addition to rent or a mortgage. There’s also the cost of moving, buying new furniture, setting up those different utilities accounts, doing your taxes independently, separating your health insurance and possibly selling the shared home or homes. And that’s just the beginning.
This major life change might cause time lost at work, the need for therapy and, if there are children involved, more child care. Speaking of children, there can also be custody to figure out.
John Norman worked in law enforcement for more than 20 years and was retired in 2019 when he separated from his now ex-wife. They lived in Ithaca, New York.
“We went through a completely unnecessary custody battle; I had to hire an expert witness,” Norman said. “I was without my kids for a year.”

Norman estimates this life event cost him between $172,799 and $191,000. He still owes $120,929 and $39,747 of that is credit card debt.
Meanwhile, money hadn’t been a problem for him and his family prior to the divorce. “We had extra money,” he said. “We bought a boat for the kids … then there was this custody battle and it just drained all of my accounts.”

How to hold down divorce costs

While it might not be easy to prevent a divorce, it’s certainly a lot easier to prevent a divorce from being costly and putting a significant financial burden on your family.
Prenups are one option — Douglas even believes they’re romantic. “You get to protect someone while you still love them, before you hate them,” she said. “And you get to divide and save money for both of you early on.”
“The best piece of advice I can give anybody is, you’re never going to negotiate a more favorable divorce for both parties than when you love each other,” Norman added.
The reality is that while it might be scary to rip off the bandage and get divorced, you don’t have to stay married to someone just because you don’t have the money to split up. Everyone has options, and there are people, organizations and resources that can help.
Watch the video above to learn how you can prevent a costly divorce. More

ETF Strategist

Whether you’re a new or a seasoned investor, exchange-traded funds are one option for your portfolio.
You can use them for tax efficiency, asset allocation and other investing goals, experts say.
“ETFs have come a long way over the past 15 to 20 years,” said Barry Glassman, founder and president of Glassman Wealth Services.

Morsa Images | Getty Images

Whether you’re a new or a seasoned investor, exchange-traded funds, or ETFs, are one option for your portfolio, depending on your goals and risk tolerance, experts say. 
ETFs are a wrapper for individual assets such as stocks and bonds, similar to mutual funds. However, many ETFs have better tax efficiency and lower expense ratios than mutual funds, driving many investors to make the switch.

“ETFs have come a long way over the past 15 to 20 years,” said certified financial planner Barry Glassman, founder and president of Glassman Wealth Services in McLean, Virginia. He is also a member of CNBC’s Financial Advisor Council.

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In 2022, investors sold more than $900 billion from mutual funds and poured roughly $600 billion into ETFs, according to Morningstar data. The net difference was the largest on record.
With the continued shift underway, we spoke with experts from CNBC’s FA Council to find out how they’re using ETFs in client portfolios.

Tax efficiency is the ‘most attractive feature’

If you’re investing in a brokerage account, capital gains and dividends trigger taxes yearly, compared to your pretax 401(k) or individual retirement accounts, which defer taxes until you withdraw the funds.
“The most attractive feature of an ETF is that most don’t distribute capital gains at the end of the year,” Glassman said.

The most attractive feature of an ETF is that most don’t distribute capital gains at the end of the year.

Barry Glassman
Founder and president of Glassman Wealth Services

By comparison, certain mutual funds have year-end capital gains distributions, particularly those with large outflows, which require managers to sell off holdings.
For Cathy Curtis, a CFP and founder of Curtis Financial Planning in Oakland, California, ETFs provide “more control over the tax impact” for investments in a brokerage account.
“Being in California, a very high tax state, this is an important part of my practice — helping clients to minimize taxable income,” she said.

How ETFs help diversify portfolios

ETFs can also be used to balance risk with reward in your asset allocation strategies.
You can think about ETFs as part of either a core portfolio or a satellite portfolio, according to Marguerita Cheng, a CFP and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland.
ETFs with exposure to broad-based indices, such as the S&P 500, can be a part of your core portfolio, providing stability because the fund follows the general movement of the index. Kamila Elliott, an Atlanta-based CFP and co-founder and CEO of Collective Wealth Partners, said her firm uses ETFs primarily for core positions in its portfolios.
By comparison, ETFs in satellite portfolios provide opportunities for diversification, which lessens exposure to any singular asset or risk. For example, Cheng pointed to a client interested in opportunities in the video game industry who was able to identify a video game ETF that suited their interests. 
Since you can’t guarantee the next big industry winner — including in the video game industry — ETFs in this role can be less of a risky bet than individual stocks, but they still have the potential for large losses and gains.

ETFs are ‘a little bit more intentional’

“[ETFs] just can be really powerful because clients can be a little bit more intentional,” Cheng said. 
Compared to mutual funds, ETFs allow you to decide where to invest your money with a greater focus on matching personal interests and needs, Cheng said. Noncore ETFs are often specific to certain sectors, stocks or niche focuses, such as food system sustainability during climate change.
To complement core ETFs, Elliott said she typically uses mutual funds “in the developed markets, emerging markets and ESG space.”
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Life Changes

Last November, the Biden administration rolled out a new process for the discharge of education debt in bankruptcy court.
The new guidelines were aimed at making it easier for struggling borrowers to get a fresh start.
Consumer advocates say only borrowers in extreme financial distress should consider bankruptcy.

Entrance to the United States Bankruptcy Court for the Southern District of New York, June 1, 2008.
Richard Levine | Corbis News | Getty Images

For decades, it was nearly impossible for student loan borrowers to walk away from their debt in bankruptcy court. That’s now changing.
Last November, the Biden administration rolled out a new process for the discharge of education debt in bankruptcy. The U.S. Department of Justice worked with the U.S. Department of Education to implement the new guidelines aimed at making it easier for struggling borrowers to get a fresh start.

In the first 10 months of the new process, student loan borrowers have filed more than 630 bankruptcy cases, a “significant increase” from recent years, the departments said in a Nov. 16 statement.
“The vast majority of borrowers seeking discharge have received full or partial discharges,” they said.
Here’s what borrowers should know.

Why are student loans harder to discharge than other debts?

Congress has set a high bar for discharging student loan debt in bankruptcy.
In the 1970s, lawmakers — responding to concerns by policy makers and pundits that students would rack up debt and then try to ditch it in court — added a stipulation that student loan borrowers needed to wait at least five years after they began repayment on their loans to file for bankruptcy. That waiting period was later upped to seven years in the Crime Control Act of 1990.

Eventually, these waiting periods were done away with, but borrowers with federal or private student debt needed to prove their loans posed an “undue hardship” to discharge it. Borrowers also must make their case in a separate “adversary proceeding” outside of the standard bankruptcy process, which is timely and expensive.
“Many student borrowers recognize they won’t be able to find success and, therefore, they won’t even try,” a lawyer and student debt advocate said in a statement for the American Bar Association in 2021.

How does the new process make it easier?

Under the new process, student loan borrowers complete a form to assist the government in evaluating their discharge request. The government compares a debtor’s expenses to their income, using existing IRS Collection Financial Standards. If the borrower’s expenses equal or exceed their income, the Justice Department likely concludes that the borrower lacks a present ability to pay.
A borrower’s future ability to pay and record of “good faith efforts,” including trying to contact the U.S. Department of Education for assistance and working to maximize their income, are the two other major considerations.

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The government may decide a borrower’s payment issues are likely to persist if they have a severe disability, are over the age of 65 or have been unemployed for at least five of the last 10 years, among other challenges.
If the Justice Department doesn’t believe a full discharge is necessary, it may recommend a partial one.
“It makes it easier for student loan borrowers to qualify for bankruptcy discharge by clearly setting out the policy,” said higher education expert Mark Kantrowitz.

When should a borrower consider bankruptcy?

Consumer advocates say only borrowers in extreme financial distress should consider bankruptcy. Depending on the type of bankruptcy you pursue, that information can stay on your credit report for up to 10 years, making it a challenge to buy a house, apply for other types of loans and even to rent an apartment.
Before moving forward with a bankruptcy, borrowers should look for other relief options, Kantrowitz said. Federal student loan borrowers have several ways to reduce their debt burden, including payment plans with $0 monthly payments and economic hardship and unemployment deferments.

Struggling borrowers should talk with a nonprofit credit counselor before filing for bankruptcy, he added.
Lastly, after President Joe Biden’s plan to cancel up to $20,000 in student debt was struck down at the Supreme Court, Biden started a new effort to forgive education debt. One of the groups that may qualify are those in financial hardship.
“This may include many borrowers who are thinking about filing for bankruptcy,” Kantrowitz said. “So, they may want to wait to see what happens.”Don’t miss these stories from CNBC PRO: More