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CANADA – 2025/01/27: In this photo illustration, the CVS Health logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Thomas Fuller | Lightrocket | Getty Images

The U.S. Federal Reserve approved a much-anticipated rate cut this past week, and signaled that more are coming. As the economy gradually heads into a low-interest rate backdrop, many investors looking for income-generating investments will prefer buying dividend stocks that offer attractive yields.  
Backed by their expertise and in-depth analysis, top Wall Street analysts can help investors pick the right dividend stocks for their portfolios.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.
CVS Health
Retail pharmacy chain CVS Health (CVS) has announced a quarterly dividend of $0.665 per share, payable on November 3, 2025. At an annualized dividend of $2.66 per share, CVS stock pays a dividend yield of 3.6%.
Following recently held conversations with CVS Health CEO David Joyner and CFO Brian Newman, Morgan Stanley analyst Erin Wright reiterated a buy rating on CVS stock with a price target of $82, expressing optimism about the value of the company’s integrated model and its turnaround potential. Interestingly, TipRanks’ AI Analyst has an “outperform” rating on CVS stock with a price target of $81.
Wright noted that one year into the CEO role, Joyner continues to focus on the stabilization and multi-year turnaround of the company. The 5-star analyst highlighted that CVS’ integrated model “generates value that should address the issues of healthcare affordability and access, and inconsistent care delivery in the U.S. by providing a more holistic solution.”
Management discussed how the integrated approach is improving CVS’ Stars (Medicare Star Ratings system) positioning, driving dominance with the new Pharmacy pricing models and facilitating biosimilar adoption. Wright noted that heading into 2026, CVS is successfully orchestrating a second turnaround year at its Aetna health insurance business and a successful pharmacy benefit manager selling season. Management also emphasized strength in the retail business, thanks to technology investments, store optimization and market share gains.

Commenting on capital deployment, Wright noted that CVS Health’s top priority is returning to its target leverage of low 3x, and that the company intends to hold its dividend until it reaches the target payout ratio (about 30% as of 2023). Importantly, CVS intends to restart share repurchases when it achieves its long-term target leverage.
Wright ranks No. 244 among more than 10,000 analysts tracked by TipRanks. Her ratings have been profitable 65% of the time, delivering an average return of 13.4%. See CVS Health Hedge Fund Trading Activity on TipRanks.
Williams Companies
This week’s second dividend pick is energy infrastructure provider Williams Companies (WMB). The company’s quarterly cash dividend of $0.50 per share reflects a 5.3% year-over-year increase. At an annualized dividend of $2 per share, WMB stock pays a yield of 3.4%.
Recently, Stifel analyst Selman Akyol hosted a conference call with Williams’ CFO John Porter. The top-rated analyst said afterward that “Williams continues to have an attractive runway for growth given its natural gas-centric strategy.” Akyol noted growing demand for natural gas, driven by an expected increase in LNG exports, power usage and data centers.
Akyol mentioned that Williams remains focused on capturing incremental data center opportunities, targeting 6 gigawatts in total capacity, with the Socrates project constituting only 400 megawatts. Furthermore, LNG exports continue to be the largest driver of natural gas demand volumes. Notably, WMB has about 10.5 billion cubic feet per day of export capacity under construction within the Transco corridor.
Despite solid growth opportunities, Akyol noted that WMB is focused on its dividend payments and maintaining a strong balance sheet, while keeping leverage in the 3.5x to 4.0x range. CFO Porter highlighted that Williams’ high-quality asset base supports a stable and growing dividend.
WMB is growing its dividend in the 5% to 6% range annually, compared to about 9% compound annual growth rate in earnings before interest, taxes, depreciation and amortization (EBITDA). Akyol noted that while, over time, management would like to grow dividends in line with cash flow growth, the timing of cash tax payments and robust growth opportunities are key reasons for the gap.
Overall, Akyol is bullish on Williams stock and reiterated a buy rating and a price target of $64. By comparison, TipRanks’ AI Analyst has a “neutral” rating on WMB stock with a price target of $63.
Akyol ranks No. 354 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 66% of the time, delivering an average return of 10.6%. See Williams Statistics on TipRanks.
Chord Energy
Finally, let’s look at Chord Energy (CHRD), an independent exploration and production company with sustainable long-lived assets, mainly in the Williston Basin in North Dakota and Montana. The company paid a base dividend of $1.30 in the second quarter. Considering the total variable and base dividends of $5.34 paid over the past 12 months, CHRD stock offers a dividend yield of 5.1%.
This week, Chord Energy announced an agreement to acquire assets in the Williston Basin from Exxon Mobil’s XTO Energy Inc. and affiliates for $550 million.
Reacting to the news, Siebert Williams Shank analyst Gabriele Sorbara said it’s another favorable deal that further consolidates core assets in the Williston Basin. The top-rated analyst noted that the purchase adds incremental inventory, enhances operational efficiency and leverages CHRD’s execution in the basin. 
Sorbara expects the acquisition to add to cash flow and free cash flow (FCF) per share, adding that while the net debt/EBITDA ratio edges higher after the deal, it remains “comfortably” low and below Chord’s peers, reflecting CHRD’s superior capital returns. In fact, CHRD reiterated its framework of returning more than 75% of its adjusted FCF to shareholders via dividends and buybacks.
“We reaffirm our Buy rating on valuation, underpinned by its strong, stable FCF yield providing the capacity for superior capital returns while maintaining low financial leverage,” said Sorbara. The analyst reiterated a buy rating on CHRD stock with a price forecast of $140. TipRanks’ AI Analyst has an “outperform” rating on Chord Energy with a price target of $118.
Sorbara ranks No. 142 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, delivering an average return of 24.4%. See Chord Energy Ownership Structure on TipRanks. More

On Thursday, American Express said consumer and business versions of its Platinum credit card will now have an annual fee of $895.
In June, the Chase Sapphire Reserve card raised the annual fee to $795. That’s a 45% jump from $550, its previous annual cost.

American Express announces the new platinum business card.
Courtesy: American Express

As issuers push annual fees higher for some premium travel rewards credit cards, experts say it’s important for consumers to consider if such cards are worth the cost.
On Thursday, American Express announced that consumer and business versions of its Platinum credit card will now have an annual fee of $895. That’s about 29% higher than the current cost of $695 per year.

In June, the Chase Sapphire Reserve card raised the annual fee to $795. That’s a 45% jump from $550, its previous annual cost. In July, Citi introduced the Citi Strata Elite, a premium travel credit card that costs $595 per year.
Other credit cards have been changing terms to access perks like airport lounges. Earlier this year, Capital One announced that, starting in February, customers using its Venture X Rewards and Venture X Business cards — each of which have $395 annual fees — will no longer be able to bring guests to the lounges free of charge.
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Higher annual fees mean you have to assess whether the card perks are worth the cost.
“Annual fees are not inherently bad; you just need to make sure that you’re getting value from [the card],” said Ted Rossman, senior industry analyst at Bankrate. “It’s getting harder to maximize, though.”

One habit will ‘easily diminish’ travel card value

A travel rewards card isn’t likely to be a good value if you’re carrying a balance from month to month, experts say.
“Any interest that you owe will easily diminish the value of any of these benefits,” said Sally French, a travel expert at NerdWallet. 
It may also be harder to pay down debt. While the average annual percentage rate for credit cards is about 20.13%, the typical rate on premium travel cards can be closer to 25% to 30%, according to Rossman.
“Generally speaking, rewards cards charge higher rates,” he said.
Here’s how to decide if a travel credit card is worth the investment, according to experts.

Decide: Broad travel card, or brand specific?

You’ll come across two kinds of travel credit cards. Co-branded credit cards are usually tied to specific airlines, hotels or even cruise chains, and provide benefits that are more valuable at that brand, French said.
If you frequently use a specific airline or tend to stay with a certain hotel chain, a co-branded credit card may be worth it, experts say.
An airline credit card, for instance, might have benefits like free checked bags, priority boarding, premium status tiers and sometimes discounts or points for spending at that airline.
“It’s only free [checked] bags on that airline,” said French. “Your Southwest credit card won’t get you anything on United.”
Some airlines belong to partnership networks such as Star Alliance, Oneworld or SkyTeam. If you’re looking at a brand-specific card, see if the company has partnerships that allow you to transfer points or miles to allied brands.

On the other hand, general travel credit cards are “really good for people who don’t want to be married to a specific brand,” as you can earn and use rewards more broadly, French said.
Some travel credit cards do not charge annual fees; for those that do, the cost can range from $95 to over $500 per year, according to NerdWallet. Keep in mind that travel credit cards with little to no fees may not offer the same level of benefits and rewards as paid cards.
Both kinds of travel cards tend to have a set of similar perks, including credits for TSA PreCheck and other pre-screening memberships, and big sign-on bonuses when you spend a certain amount of money on the card within a short period of opening it. As a frequent traveler, such benefits can help make the card fee worth the cost, experts say.
To assess the benefits of the card, look at a detailed list of the perks on the issuer’s website, said French. A card might charge an annual fee, but say it includes one free checked bag for you and a certain amount of guests. With just that perk, the card could pay for itself within a trip or two for a family.

How to know what card is best for you

While some of the perks and rewards can seem enticing, it’s important to consider your travel habits and lifestyle, said Rossman. Also consider what your credit habits are like, experts say. 
For those who do not travel often, a travel credit card without an annual fee is probably going to be the best option, said French.
“You don’t want to be paying an annual fee on a credit card that has benefits that you might not use,” she said. 

If you travel frequently in a given year and typically with a specific airline, a co-branded credit card can make sense, French said. 
If you currently hold a card with a high annual fee, but realize you’re not getting the most use out of it, you may be able to downgrade to a less expensive or free card offered by the issuer, Rossman said. 
Doing so will be better for your credit rather than closing out the card altogether, he said. More

A sign is posted in front of Workday headquarters on Feb. 6, 2025 in Pleasanton, California.
Justin Sullivan | Getty Images

Company: Workday (WDAY)
Business: Workday is a provider of an artificial intelligence platform to help organizations manage their people, money and agents. The company provides over 11,000 organizations with cloud solutions powered by AI to help solve business challenges, including supporting and empowering their workforce, managing their finances and spending in an ever-changing environment, and planning for the unexpected. It offers financial management, spend management, human capital management, planning, and analytics applications. The company sells its solutions worldwide primarily through direct sales. It also offers professional services, both directly and through its Workday Services Partners, to help customers deploy its solutions. It offers businesses flexible solutions to help them adapt to their industry-specific needs and respond to change. It serves various industries, including professional and business services, financial services, healthcare, education, government and others.
Stock Market Value: $58.48 billion ($219.01 per share)

Stock chart icon

Workday shares year to date

Activist: Elliott Investment Management

Ownership: ~3.4%
Average Cost: n/a
Activist Commentary: Elliott is a multistrategy investment firm that manages about $76.1 billion in assets (as of June 30) and is one of the oldest firms of its type under continuous management. Known for its extensive due diligence and resources, Elliott regularly follows companies for years before making an investment. Elliott is the most active of activist investors, engaging with companies across industries and multiple geographies.
What’s happening
Elliott has taken a more than $2 billion position in Workday and expressed its support for the company’s management team.
Behind the scenes
Workday is a cloud-based enterprise software company that provides HR solutions for human capital and financial management. Its human capital platform enables companies to manage workforce and HR processes, while the financials platform supports streamlining financial operations such as accounts payable, procurement and accounting. While the HR software sector is highly competitive, Workday is a dominant player, used by over 11,000 organizations and more than 60% of Fortune 500 companies. Additionally, this is a very sticky business model with a 98% customer retention rate and steady mid-teens revenue growth. Despite this strong backdrop, Workday has significantly underperformed its closest peer group (ServiceNow, SAP and Salesforce) by an average of 13.61, 69.58, and 49.87 percentage points over the past 1-, 3- and 5-year periods, respectively.

Since going public 13 years ago, Workday has embraced a growth at all costs mentality, which has been highly effective, allowing them to grow their revenue base from under $300 million pre-IPO to almost $9 billion now.
The problem with this strategy today is that Workday is now facing the law of large numbers — with such a large revenue base sustaining high growth becomes increasingly difficult. Moreover, despite this hyper growth, Workday has never really generated significant profit and investors have been losing patience. However, the company has recently made a huge change that is the impetus for a plan that should drive tremendous shareholder value — after being led by co-founder Aneel Bhusri since inception, Carl Eschenbach became its full-time CEO in February 2024.
This is not meant to denigrate Bhusri — quite the opposite. Bhusri is a rare visionary who did the hardest part already — building a company from zero to $58 billion. The next stage, efficiently operating a public company is often a different skill set that most founders, particularly one as young as Bhusri, do not recognize should be done by someone else. He deserves a lot of credit for handing over the day-to-day reins and moving up to executive chair. This will allow the company to make a critical fresh start in its strategic direction. And that they just did.
On Tuesday, Workday announced a multiyear plan at its financial analyst day that included a number of value-focused initiatives, such as a $5 billion share repurchase program, cost prevention measures expected to deliver nearly 1,000 basis points of GAAP margin expansion over the next couple of years, and a $15 per share free cash flow target by fiscal year 2028.
Elliott announced on Wednesday that they have taken a more than $2 billion position in Workday and expressed their support of the company’s management team. Many people think that Elliott and “amicable” go together as well as “deafening silence” or “virtual reality,” but Elliott has had significant success in amicable engagements and this will be another example.
Elliott does deep research on all companies and industries they invest in and were likely watching Workday when Eschenbach became CEO, piquing their interest even more. Elliott’s relationship with Eschenbach stems back over a decade to his prior role as president and COO of VMware, where Elliott was a very active shareholder. So, it is no coincidence that Elliott’s decision to make their investment public comes the day after Workday announced their new multiyear plan. Elliott would never take such a significant position in a controlled company (via dual class shares) unless they have had extensive conversations with management and know they were on the same page.
Accordingly, while the board and management should get the credit for this new plan, we can’t help but see Elliott’s fingerprints on it to some extent. Moreover, this will not be a difficult plan to implement.
With more than $8 billion in net cash, Workday has more than enough capital to fund buybacks while retaining an M&A war chest. And as the company is still growing at a healthy clip, margin expansion can be accomplished without cost cutting, but through cost maintenance. Additionally, AI implementation presents a significant opportunity for Workday.
In 2024, the company generated about $150 million in net new AI based revenue — a 200% year over year increase. With many HR functions involving tedious and repetitive processes, Workday is uniquely well positioned to leverage AI to automate its workflows and improve its product offerings.
The company is well aware of this and has already commenced accretive M&A in the space. On Tuesday, Workday announced a $1.1 billion deal to acquire Sana; and last month, the company acquired both Paradox and Flowise.
It is also important to note that a company like Workday that is founder controlled, with Busri holding over 70% voting power through Class B shares, can often be ascribed a governance discount if the market does not believe that the controlling founder will work on behalf of shareholders. A new, unaffiliated body in the C-Suite emboldened by the support of Elliott should go a long way to assuage those concerns.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

The U.S. Department of the Treasury and IRS on Friday issued proposed regulations with more details about President Donald Trump’s “no tax on tips” deduction.
The proposed regulations include eligible occupations, the definition of “qualified tips” and how to claim the tax break.
However, the Treasury plans to share additional guidance when it finalizes the regulations.

Ugur Karakoc | E+ | Getty Images

The U.S. Department of the Treasury and IRS on Friday issued proposed regulations with more details about President Donald Trump’s “no tax on tips” deduction.
Enacted via Trump’s “big beautiful bill” in July, the provision allows certain workers to deduct up to $25,000 in “qualified tips” per year from 2025 through 2028. The tax break on tips phases out, or gets smaller, once modified adjusted gross income exceeds $150,000.

Since the measure applies to current-year earnings, it has sparked questions — including which jobs qualify — from tipped workers and tax professionals.
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In 2023, there were roughly 4 million U.S. workers in tipped occupations, representing 2.5% of all employment, according to estimates from The Budget Lab at Yale University.
Here are some key things to know about the new tax break, according to Treasury officials.

Some tipped ‘SSTBs’ won’t qualify

The Treasury in August released a preliminary list of 68 occupations that “customarily and regularly received tips” as of Dec. 31, 2024, as required by Trump’s legislation.

However, certain jobs, known as so-called “specified service trade or businesses,” or SSTBs, don’t qualify, Treasury officials told reporters on Thursday.
SSTBs include categories like health care, legal, financial services, performing arts and more. Trump’s 2017 tax law outlined the list of SSTBs to limit eligibility for a 20% deduction for certain businesses. 

‘Automatic gratuity’ is not eligible

Treasury officials also confirmed that automatic gratuity won’t count as a qualified tip because the payment isn’t given to workers voluntarily.   
For instance, let’s say you work at a restaurant that requires an 18% fixed gratuity for parties of six or more. Such earnings would not qualify for the tax break.
Treasury officials on a press call Thursday said that the new tax break is complicated and said they will provide further guidance when the regulation is finalized.
This is a developing story. Please refresh for updates. More

The Fed’s long-awaited rate cut could bring some consumer rates down, which may be good news for borrowers hoping to refinance into lower-cost loans.
But whether to refi existing mortgages, car loans or student debt into lower-rate alternatives generally depends on the type of loan and your financial picture, experts say.

The Federal Reserve announced a long-awaited rate cut on Wednesday.
The move could bring some consumer rates down, which may be good news for borrowers hoping to refinance into lower-cost loans.

“While the broader impact of a rate reduction on consumers’ financial health remains to be fully seen, it could offer some relief from the persistent budgetary pressures driven by inflation,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.
But that relief may take a while to arrive.
Borrowing costs tend to rise quickly when the Fed raises its benchmark interest rate — but fall slowly when it cuts. And certain debts, like mortgages, are influenced more by movements in long-term U.S. Treasury bonds than the Fed’s benchmark interest rate.

It may take a series of rate cuts for borrowing costs to come down noticeably — and for a refi to make sense, according to Stephen Kates, a certified financial planner and financial analyst at Bankrate.
“This isn’t going to change anybody’s life overnight,” Kates said. “For most consumers, [Wednesday’s cut] is a non-event.”

Whether to refinance existing loans into lower-rate alternatives generally depends on the type of loan and your financial picture, experts say.
Here’s what you need to know.

When to refinance your mortgage

Since 2021, the share of outstanding mortgages with rates above 6% has more than doubled, according to Bob Schwartz, senior economist at Oxford Economics.
Mortgage rates have come down significantly from their recent peak at over 7% back in January, and that’s causing a run on refinance demand.
“We have already experienced lower mortgage rates the last two weeks, giving many homeowners who purchased a home in the past three years, the opportunity to refinance,” said John Hummel, head of retail home lending at U.S. Bank.

Refinancing any debt generally makes most sense when there’s a spread of at least 1 percentage point between your current interest rate and the new refi rate, said Bankrate’s Kates — for example, if a refi can reduce your mortgage rate to 6% from 7%.
“The bigger that spread is, the better it’s going to be,” Kates said.
For example, homeowners who have a $400,000 fixed mortgage with a 30-year term and 7% interest rate might pay about $2,661 a month. (This includes principal and interest, but excludes factors like insurance and property tax).
The same mortgage with a 6.25% interest rate would reduce their payment by $198 per month, to $2,463. A 5.75% interest rate would drop it by another $129, to $2,334 a month.
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However, refinancing a mortgage too frequently — say, every time interest rates drop 0.25 percentage points — is generally not a good idea, Kates said.
That’s due to closing costs and other fees tacked on to each new mortgage, he said. Repeatedly incurring those costs would erode the financial benefit of refinancing.
“You’re funding your mortgage lender’s kid’s financial education probably more than you’re benefiting yourself,” Kates said.
Consumers should pay attention to the APR — or, annual percentage rate — on a loan, which is inclusive of interest and all fees, Kates said.

When to refinance your auto loan

Car loans are a similar story, since the APR can make a big difference in your monthly payment.
If you financed a car over the past two to three years and pay 7% or more in interest on that loan, this may be an opportunity to get a lower rate, according to Joseph Yoon, consumer insights analyst at Edmunds. It helps if your credit score has improved since the loan origination, he said. (Generally speaking, the higher your credit score, the better off you are when it comes to getting an auto loan.)

However, if your car loan is from 2019 or 2020, your loan’s APR is likely to be lower than current rates, “which makes refinancing a dubious bet at best,” Yoon said.
“Whether or not it’s a good idea to consider a refinance really depends on your financial situation,” Yoon said.
In every case, “crunch the numbers,” Yoon said — lowering your monthly payment may not be worth carrying a car payment for additional time and ultimately paying more in interest.

When to refinance your student loan

While federal student loan rates are fixed, private loans may have a variable rate, which means as the Fed cuts rates, borrowers with variable-rate private student loans could automatically get a lower interest rate, according to higher education expert Mark Kantrowitz — although any decreases in interest rates will be relatively small.
“A 0.25% decrease in the interest rate might reduce the monthly payment by about a dollar per month per $10,000 borrowed on a 10-year repayment term,” Kantrowitz said.

Eventually, borrowers with fixed-rate private student loans, or even federal loans, may be able to refinance into a less expensive loan if interest rates keep coming down, Kantrowitz said.
In this case, there are no prepayment penalties or transaction fees for federal and private student loans, so borrowers can refinance their loans multiple times if rates continue to fall.
However, refinancing a federal loan into a private student loan is generally not a good idea, experts say. Doing so will forgo “the superior benefits of federal student loans,” Kantrowitz said, such as better deferments and forbearances, income-driven repayment plans and loan forgiveness and discharge options. 
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The New York Department of Taxation and Finance will send refund checks to over 8 million New Yorkers starting at the end of September.
The exact amount paid will depend on the taxpayer’s filing status and their adjusted gross income for the 2023 tax year.

ALBANY, NY – MAY 21: Gov. Kathy Hochul holds a press conference at Common Roots Outpost to announce MIG, a national consultant group, will guide public engagement process for spending $200 million in downtown Albany on Wednesday, May 21, 2025, in Albany, N.Y. (Lori Van Buren/Albany Times Union via Getty Images)
Albany Times Union/hearst Newspapers | Hearst Newspapers | Getty Images

There’s no need to apply or sign up for the payment. The refund checks will be mailed directly to eligible New Yorkers over several weeks.

You may receive your check “sooner or later than your neighbors,” as the payments are not based on zip codes or regions, according to the agency.

Why New York is sending rebate checks

The rebate checks are possible because higher prices led to higher sales taxes, according to Jared Walczak, vice president of state projects at the Tax Foundation. The state of New York generated more revenue than it otherwise would have, he said.
“This rebate check is a response to that,” said Walczak.

However, it’s not unusual to see state, local and federal governments provide specialized rebate and stimulus checks to taxpayers, he said.
Earlier this year, Sen. Josh Hawley, R-Mo., proposed the American Workers Rebate Act in July, which aims to send tariff rebate checks to households. The bill aims to provide “at least” $600 per adult and dependent child, or $2,400 for a family of four. The legislation has not passed yet. As of late July, it has been referred to the Committee on Finance.
For now, New York seems to be the only state that has recently announced inflation-related rebate payments, said Walczak.
“It doesn’t appear as if any [states] are looking at New York right now and choosing to follow,” he said.

‘A smart move for your future’

If you do qualify for a stimulus check, it’s smart to use the additional cash wisely. 
“The first priority is shoring up the basics,” said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in New York City. 

For instance, use the cash to “beef up” your emergency fund so you’re prepared for unexpected expenses, said Boneparth, a member of the CNBC Financial Advisor Council. 
If you have high-interest debt, such as an outstanding credit card balance, consider using the refund to pay down the debt that’s “eating away at your budget,” he said. 
But if you have those fundamental steps taken care of, investing the cash “could be a smart move for your future,” Boneparth said. More

Nearly two dozen attorneys general and more than 250 organizations are opposing the Trump-era proposed regulation that could narrow eligibility for Public Service Loan Forgiveness.
“[T]he Trump Administration is attempting to hold this debt relief tool hostage from employers that engage in actions the President does not like,” said California Attorney General Rob Bonta in a statement.

California Attorney General Rob Bonta speaks at a press conference in February 2024.

Nearly two dozen attorneys general, and a wide range of consumer groups and advocates, have registered their opposition to the Trump administration’s proposed regulation that could narrow eligibility for a popular student loan forgiveness program for government and nonprofit workers.
The 22 attorneys general registered their criticism in a letter to Education Department Secretary Linda McMahon on Wednesday. On Thursday, 254 organizations — including the NAACP, The Cancer Network and Florida Justice Institute, among others — also signed a letter condemning the Trump administration’s proposed PSLF rule.

“Nationwide, millions of Americans took out student loans to become public servants with the promise of debt relief down the line, and now, the Trump Administration is attempting to hold this debt relief tool hostage from employers that engage in actions the President does not like,” California Attorney General Rob Bonta said in a statement.
The Public Service Loan Forgiveness program, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.
President Donald Trump signed an executive order in March that said borrowers employed by organizations that do work involving “illegal immigration, human smuggling, child trafficking, pervasive damage to public property and disruption of the public order” will “not be eligible” for PSLF.
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In August, the U.S. Department of Education issued a notice of proposed rulemaking on its regulations to halt loan forgiveness under PSLF for certain employees based on that executive order. In its proposed rule, the Education Department said the changes “may delay or prevent forgiveness for a subset of borrowers.”

People were given until Sept. 17 to comment on the proposed rules at Regulations.gov, and the attorneys general submitted their letter to McMahon on that deadline.
The U.S. Department of Education did not immediately respond to a request for comment.
The AGs’ letter was signed by attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
The consumer groups’ letter comes from a range of organizations “representing millions of students, borrowers, healthcare workers, government workers, educators, people of color, veterans, women, immigrants, people with disabilities, and consumers crushed under the weight of student loan debt,” it notes.
The rule, they wrote, “is blatantly unconstitutional, illegal, and harmful to millions of borrowers across the country.”

Concern over who will be excluded

In their letter, the attorneys general wrote that the vagueness of the regulatory language will lead to uncertainty regarding which employers are eligible for PSLF, and grant the Trump administration broad authority to exclude programs it doesn’t approve of.
“If allowed to go into effect, ED could deem the State of California or specific California state agencies ineligible for PSLF, denying loan relief to state employees, and undercutting the state’s ability to recruit and retain skilled employees,” according to a press release from Bonta’s office.
Trump’s executive orders have targeted immigrants, transgender and nonbinary people, and those who work to increase diversity across the private and public sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.
“Borrowers that work for those organizations are concerned,” Betsy Mayotte, president of The Institute of Student Loan Advisors, told CNBC in March.

Proposed rule is ‘unlawful,’ attorneys general say

The U.S Department of Education is trying to create “unlawful exceptions to Congress’s clear statutory command,” the attorneys general wrote in their letter.
When the program was created, Congress specified that PSLF would be available to any eligible borrower who has worked in government or a 501(c)(3) nonprofit for a decade, they wrote.

Consumer advocates have made the same argument, and said that legal challenges to the rule were likely.
“The PSLF program, which was created by Congress almost 20 years ago, does not permit the administration to pick and choose which non-profits should qualify,” Jessica Thompson, senior vice president of The Institute for College Access & Success, told CNBC when Trump first signed the executive order on PSLF.

What student loan borrowers need to know

Experts say borrowers’ best option right now is to stay the course, assuming their current employer has previously been considered qualifying for PSLF.
That’s because it remains unclear exactly which organizations will no longer be considered a qualifying employer for PSLF under the Trump’s administration’s regulations. Some experts also say the changes to eligibility could be challenged in court.

Any overhaul of the PSLF program can’t be retroactive, Mayotte said.
That means that if you are currently working for or previously worked for an organization that the Trump administration later excludes from the program, you’ll still get credit for that time — at least up until the rule changes go into effect.

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A bipartisan proposal to curb elder financial fraud is gaining traction in Congress.
The bill would enlist the Securities and Exchange Commission to help lawmakers fight this issue.
It would also enable financial institutions to delay transactions where elder abuse is suspected.

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A bipartisan proposal to combat elder financial abuse is getting attention in Congress.
The bill — the Financial Exploitation Prevention Act — would give the financial industry new ways to address suspected financial abuse of seniors or physically or mentally disabled individuals.

Older adults over age 60 lose an estimated $28.3 billion per year from criminal theft, according to a 2023 AARP report. Most of those losses — 72% — are perpetrated by someone they know, such as a family member, friend or caregiver, according to the report.
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On Wednesday, Sens. Bill Hagerty, R-Tenn., and Ruben Gallego, D-Ariz., reintroduced the bill to the Senate for the second time. The bill was previously introduced in the Senate in 2023.
A House version of the bill put forward in March, which was sponsored by Reps. Ann Wagner, R-Mo., and Josh Gottheimer, D-N.J., was unanimously approved by the House Financial Services Committee on Tuesday.
Both versions of the bill would require the Securities and Exchange Commission to report to Congress on ways to prevent financial exploitation of elderly and vulnerable adults through legislation and regulation.

The legislation would also allow certain financial institutions to delay transactions that raise suspicions of financial exploitation. Registered open-end investment companies or transfer agents for those companies, including mutual funds, would be able to delay the redemption period for any redeemable security transaction that raises suspicions of financial exploitation.
The House version of the bill passed the Financial Services Committee with a 50 to 0 vote. In a statement, Wagner said she looks forward to the whole House taking up the bill. More