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If you’re one of the millions of taxpayers who paid for TurboTax when the filing software should have been free, you may soon receive a settlement check.
You may qualify if you used TurboTax for federal returns for tax years 2016, 2017 or 2018, but were eligible for the free version of the software through IRS Free File.

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Who qualifies for a TurboTax settlement payment

You may qualify for the settlement if you used TurboTax for federal returns for tax years 2016, 2017 or 2018, but were eligible for the free version of the software through IRS Free File.
The settlement applies to those who were eligible for Free File and started 2016, 2017 or 2018 federal returns with Intuit’s free software. If you were then told you didn’t qualify for the free software, paid Intuit to complete your return and didn’t use Intuit’s Free File product in a previous year, you may receive a payment, according to the settlement website.
Taxpayers qualified for Free File for 2022 with an adjusted gross income of $73,000, but the threshold was $64,000 for tax year 2016, according to the Free File Alliance.

How much money to expect, and when

If you’re one of those consumers eligible for a payment, you can expect to hear from Rust Consulting, the settlement fund administrator, by email, and checks will start being sent next week. There is no action required by those affected.
While most eligible consumers are expected to receive about $30, you may get up to $85 if you used TurboTax for the three consecutive years named.
Although payments begin in May, some checks won’t reach consumers until early June, depending on the mailing date, according to the settlement website. However, if you don’t receive the funds by mid-June, you can request a reissue through the website with your claimant ID issued by email.  

Filers wronged by ‘predatory’ marketing

“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” James said in a statement. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes.”
While roughly 70% of taxpayers qualify for Free File, only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate’s annual report to Congress. More

The debt ceiling is the amount of money the U.S. is authorized to borrow to pay its bills.
The U.S. runs a budget deficit, meaning its revenue isn’t enough to cover spending. The government borrows money to make up the difference.
Congress regularly suspends or raises the debt limit so the U.S. can borrow more. But lawmakers are at an impasse — meaning the government could default on its debt as soon as June 1.
Failing to pay its bills in full and on time may have serious economic repercussions: recession, job loss, delayed payments of federal benefits like Social Security, higher borrowing costs and a plunging stock market.

The U.S. may default on its debt within a month — an event that could threaten severe financial harm for American households and the economy at large, experts warn.
To avoid that outcome, lawmakers are trying to find a path forward to raise or suspend the debt ceiling, which would enable the U.S. to pay its bills on time. But they’re currently at an impasse, raising the prospect of default.

“A failure to do that would be unprecedented,” Jerome Powell, chair of the U.S. Federal Reserve, said during a press conference Wednesday. “We’d be in uncharted territory … and the consequences to the U.S. economy would be highly uncertain and could be quite averse.”
More from Personal Finance:3 risks for consumers to watch ahead of a possible recessionHow to buy your first car3 reasons the job market is cooling down
Here’s what the debt ceiling is, and what makes it so important for consumers.

What is the debt ceiling?

The debt ceiling is the amount of money the U.S. Department of the Treasury is authorized to borrow to pay the nation’s bills.
Those obligations include Social Security and Medicare benefits, tax refunds, military salaries and interest payments on outstanding national debt, for example.

The current ceiling is about $31.4 trillion. The U.S. hit that borrowing limit in January.

Not unlike many households, the government is reliant on debt to fund its obligations.

Mark Hamrick
senior economic analyst at Bankrat

That means the federal government is unable to increase the amount of its outstanding debt — and paying its bills becomes trickier.
“Not unlike many households, the government is reliant on debt to fund its obligations,” Mark Hamrick, a senior economic analyst at Bankrate, previously told CNBC. “And like many households, it doesn’t have sufficient income to fund its expenses.”
The debt ceiling wouldn’t be an issue if U.S. revenues — i.e., tax proceeds — exceeded its costs. But the U.S. hasn’t run an annual surplus since 2001 — and has borrowed to fund government operations each year since then, according to the White House Council of Economic Advisers.

Why is the debt ceiling an issue right now?

U.S. Treasury Secretary Janet Yellen on April 20, 2023 in Washington, D.C.
Anna Moneymaker | Getty Images News | Getty Images

The Treasury has temporary options to pay bills: It can use cash on hand or spend any incoming revenues, like those from the recently concluded tax season.
It can also use so-called “extraordinary measures.” These measures, which basically entail shifting funds around behind the scenes, free up cash for the federal government in the short term. The Treasury started using those measures Jan. 19 when the U.S. hit its $31.4 trillion debt ceiling.
These maneuvers have helped prevent a potential calamity: a default.
A default would occur if the U.S. runs out of money to meet all its financial obligations on time — for instance, missing a payment to investors who hold U.S. Treasury bonds. The U.S. issues bonds to raise money to finance its operations.
The U.S. has defaulted on its debt just once before, in 1979. A technical bookkeeping glitch resulted in delayed bond payments, an error that was quickly rectified and only affected a small number of investors, the Treasury said.

We’d be in uncharted territory … and the consequences to the U.S. economy would be highly uncertain and could be quite averse.

Jerome Powell
chair of the U.S. Federal Reserve

The U.S. has never “intentionally” defaulted on its debt, Council of Economic Advisers economists said. This outcome is the one that would cause “irreparable harm,” Treasury Secretary Janet Yellen warned in January.
The precise scope of negative shock waves is unknown since it hasn’t happened before, economists said. But the fallout would likely be serious.
“We need to end this [political] drama as quickly as possible,” Mark Zandi, chief economist at Moody’s Analytics, said of the stalemated negotiations during a Senate Budget Committee hearing Thursday. “If we don’t, we’re going to go into recession.”
That risk comes at a time when the U.S. economy is already bracing for potential recession over the 12 to 18 months, due to its absorption of higher interest rates and a banking crisis that is “still simmering,” Zandi said.

Frozen benefits, a recession, pricier borrowing

The exact date of a U.S. default — known as the “X date” — is difficult to pinpoint due to the volatility of government payments and revenues.
Yellen estimated Monday that the X date could be in early June and possibly as soon as the first day of the month.
Congress can raise or temporarily suspend the debt ceiling in the interim to avert a debt-ceiling crisis — something lawmakers have done many times in the past. But the current political impasse puts their ability, or willingness, to do so into question this time.   
Zandi estimates Congress has until June 8 to avert default.

Justin Paget | Digitalvision | Getty Images

If the U.S. were to default, it would send several negative shock waves through the U.S. and global economies.
A “protracted” default would cause “an immediate, sharp recession on the order of the Great Recession,” the Council of Economic Advisers wrote Wednesday.
That scenario is unlikely, Zandi said. But one that’s short-lived is still expected to do damage, as is a scenario in which the country narrowly avoids default via an eleventh-hour deal.
Here are some of the ways it could affect consumers and investors:
1. Frozen federal benefits
If the federal government doesn’t have enough cash on hand to pay its bills, the most likely scenario is one in which it prioritizes making debt payments to bondholders — meaning other recipients of federal funds would get a late payment, Zandi told CNBC.
That would affect tens of millions of American households, who wouldn’t get certain federal benefits — such as Social Security, Medicare and Medicaid, and federal aid related to nutrition, veterans and housing — on time, the CEA said. Government functions such as national defense may be affected, if the salaries of active-duty military personnel are frozen, for example.
Initially, payments may come a day or so late — but the delay would lengthen the longer a deal isn’t reached, Zandi said.
2. A recession, with job cuts
In that scenario, households would have less cash on hand to pump into the U.S. economy — and a recession “would seem to be inevitable” under these circumstances, Hamrick said.
A default, or even the threat of one, would weigh on financial markets and erode confidence among consumers, investors and businesses, causing a pullback in spending and hiring, Zandi said. And that chaos would impact the U.S. economy.
The U.S. would shed 500,000 jobs and the national unemployment rate would increase by 0.3 percentage point in the third quarter of 2023 if there’s a short default, the CEA estimated. Those numbers balloon in a longer debt crisis — to over 8 million lost jobs and a five-point spike in unemployment.
Even “brinkmanship” may cause 200,000 job cuts, it added.
3. Higher borrowing costs
Investors generally view U.S. Treasury bonds and the U.S. dollar as safe havens. Bondholders are confident the U.S. will give their money back with interest on time.
“It’s sacrosanct in the U.S. financial system that U.S. Treasury debt is risk free,” Zandi said.
If that’s no longer the case, ratings agencies would likely downgrade the country’s top-grade credit rating, and investors will demand much higher interest rates on Treasury bonds to compensate for the additional risk, Zandi said.
Borrowing costs would rise for American consumers, since rates on mortgages, credit cards, auto loans and other types of consumer debt are linked to movements in the U.S. Treasury market. Businesses would also pay higher interest rates on their loans.
4. Extreme stock market volatility
Of course, that’s assuming businesses and consumers could get credit. There might also be a severe financial crisis if the U.S. government is unable to issue additional Treasury bonds, which are an essential component of the financial system, Hamrick said.
“A default would send shock waves through global financial markets and would likely cause credit markets worldwide to freeze up and stock markets to plunge,” the CEA said.
Even the threat of a default during the 2011 debt-ceiling crisis caused Standard & Poor’s (now known as S&P Global Ratings) to downgrade the credit rating of U.S. and generated considerable market gyrations. Mortgage rates rose by 0.7 to 0.8 percentage point for two months, and fell slowly thereafter, the CEA said.
The S&P 500 fell nearly 17% between July 22 and Aug. 8 during the debt-ceiling impasse in 2011, which was “perhaps the closest brush the United States has had” with default, according to a note published by Wells Fargo Economics.
The CEA estimates the stock market would plunge by 45% in the third quarter in a protracted default. More

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The average new car transaction is around $48,000, up 37% in the past five years, according to Edmunds data.
“Things are improving a bit for shoppers,” said Matt Degen, editor for Kelley Blue Book. “Prices have dipped a little bit for both new and used cars — but they’re still near historic highs.”

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This story is part of CNBC’s College Money Guide 2023, a series to help students and recent graduates understand their money and start their adult life off on a solid financial path.
Buying your first car as an adult is always a little daunting. But trying to buy in this current car market, with both vehicle prices and interest rates in the stratosphere, it can feel near impossible.

“It is, in so many ways, unprecedented,” said Joseph Yoon, consumer insights analyst for Edmunds. “You have a combination of terrible inventory, the highest interest rates since the Great Recession and no discounts or incentives because of the inventory situation and outsized demand.”
To put this market into perspective: The average new car transaction is around $48,000 right now, up a whopping 37% in the past five years, according to Edmunds data. The average used car price has jumped about 45% to $29,000 in that same amount of time.
The average interest rate on a car loan is around 6.5% for a new car and 7% to 8% for a used car, according to Bankrate. That’s up from around 4.5% for a new car and 5% for a used car five years ago.
More from Personal Finance:Job hunting tips for the class of 2023An easy budgeting guide for college students, new gradsAre gas-powered or electric vehicles a better deal?
There are signs that the market may be starting to cool, but it’s still a tough time to be buying.

“Things are improving a bit for shoppers,” said Matt Degen, editor for Kelley Blue Book. “Prices have dipped a little bit for both new and used cars — but they’re still near historic highs.”
Both Yoon and Degen cautioned that buyers should still expect to pay more than the sticker price, and there aren’t many incentives out there right now. And that’s tough if you’re buying your first car on limited income and you don’t have an existing vehicle to trade in and drive down the cost a little.
That makes it even more important to do your research to know how much the car you want is worth so that you can get the best deal possible. Using sites such as KBB.com or Edmunds.com are a good place to start.
Here are three steps to take to make sure you’re getting a good value.

1. Above all else, know your budget

When you’re buying a car, Yoon said the most important factor is to “really, really, really know your budget.”
“Go online, run every single payment calculator you can find and really familiarize yourself with how the numbers are going to shake out every month,” Yoon said.
The average monthly car payment is now more than $730, compared to $527 five years ago, according to Edmunds.
But the cost of owning a car is much more than just the price you pay for it. It also includes:

Interest on your car loan (unless you can pay all cash)
Insurance
Gas (or electric for charging)
Maintenance and repair costs

If you don’t absolutely need a car right away, you should wait it out as long as possible.

Joseph Yoon
consumer insights analyst for Edmunds

When you add in insurance — which varies from state to state and is higher for younger, less experienced drivers — that will add another $100 or more to the monthly cost. For a 20-year-old driver, for example, the average minimum coverage is $110 a month and the average full coverage is $360 a month (about double the overall average), according to Bankrate.
“If you’re 23 years old, that [insurance] number might shock you,” Yoon said. “Know how much you can comfortably spend.”
Yoon suggests calling around to get quotes from several different auto insurance companies to try to find the best rate. If you haven’t decided what vehicle model you’re buying, ask the agents for quotes on each you’re considering.

2. Be smart about financing

With car prices so high, many people finance the purchase, taking on an auto loan. If you go this route, make sure you run the numbers carefully.
The amount of time you take to pay back that loan affects the rate, as does your credit score. If you have a lower credit score, that can drive your interest rate even higher. So, you want to make sure you take steps to improve your score first, to get the best deal possible.
Shop around for a loan before you walk into the dealership. A lot of people think the only way to finance a car is through the dealership, but that’s not true.
“We recommend getting pre-approved for a loan at your bank or credit union before even stepping foot into a dealership,” Degen said. “Then you won’t be at the mercy of the dealership’s financing department.”

Boonchai Wedmakawand | Moment | Getty Images

Try to put down as big of a down payment as you can. That will lower the total amount of the loan — and your monthly payment.
“With interest rates so high, the one thing you can control is reducing the amount of the loan you get,” Yoon said.
Consider how the monthly payment on that loan and all the other costs associated with owning a car will fit into your overall budget. Make sure you can still pay your bills — and squirrel away some money for emergency expenses. You never want to overextend yourself.
And don’t just consider your current debt but debt you might have in the future, Degen said. There’s a chance you’ll have this car for 10 years or more, so you want to make sure you aren’t stretching your budget too thin with the car payment.

With interest rates so high, the one thing you can control is reducing the amount of the loan you get.

Joseph Yoon
consumer insights analyst for Edmunds

There is a common guideline in car buying called the 20/4/10 rule — put 20% down, sign a loan for no more than four years and make sure your monthly payment is no more than 10% of your salary.
You might be tempted in a market like this to overextend yourself a little, thinking — “Oh, I’ll get a raise and then I’ll have more money and it will work out.” But if the last few years has taught us anything, it’s how unpredictable the economy can be. So, make sure you can afford it right now — don’t factor in money you haven’t earned yet. Nothing is guaranteed.
“Your next raise might come later than you expect,” Yoon said. “Don’t take that for granted.”

3. Weigh the options: Buy new or used, or lease

Should you buy a new or used car?
“This depends on your personal budget and situation,” Degen said. “A new car brings benefits like a factory warranty and the knowledge that no one has abused the car before you.
“But new cars are expensive, and finding models in the lower price range can be a challenge,” he added. “A used car is cheaper but has its own unknowns.”
And, between the high prices and interest rates, you’re going to be paying a lot for that used car.
A bank might not even give you a loan for a used car if it’s too old — they would see it as too much of a risk. And, if you do finance an older car, think about how old that car will be when you are finished paying the loan. Degen notes that you might run the risk of being underwater — where your car is worth less than what you’re paying on the loan — and that isn’t a place you want to be.

Another option is to consider a certified pre-owned vehicle. “These bring the best of both worlds: It’s a used car but one that has been vetted and combed over by mechanics and comes with a warranty just like a new car,” Degan said. “They are a bit more expensive than a used car of the same make and model, but a wise option.”
What about leasing? Leasing can, when the timing is right, be a great option to get a new car while putting down less than you would on a new car then having the option of trading it in down the line.
But Yoon said now isn’t a great time to lease. A good lease deal hinges on two things: things: incentives and low interest rates — and you don’t have either right now.
“You’d have to bring a much bigger down payment to that deal” to make it worthwhile, Yoon said. “And, if you’re going to do that, you might as well just put that into a loan for a new car.”

5 questions to ask yourself before buying a car

Beyond making sure a car fits into your budget, and whether you want to buy a new or used car, here are few other questions first-time buyers navigating this market ought to ask themselves:

Am I willing to compromise? Consider an older or smaller car than you originally wanted — that will save you some money. Though do your research to know which brands are reliable.
Do I know anyone selling a vehicle? Consider whether anyone in your network is selling their old car, instead of going to a dealership. “They’re more likely to cut you a deal,” Yoon said. But it is important that you know and trust them.
Am I OK not having the latest technology and safety features? If you are buying an older model to save a little money, understand that they might not have rear cameras, Apple Car Play, or other features of some of the newer models.
How does this feel to drive? When you’re test-driving the car, make sure it feels OK for you personally.
Is this car in good shape? If you’re buying a used car, get a local mechanic — maybe someone your family knows or has worked with before — to do a pre-inspection on the car to make sure nothing is wrong with it. That might cost $150-$200 but Yoon said it is worth it.

Try to wait — if you can

There are signs of improvement in the car market but Yoon said wait a little longer if you can.
“If you don’t absolutely need a car right away, you should wait it out as long as possible,” Yoon said.
What could move the needle in this car market is the Federal Reserve’s latest interest rate hike. That will push auto loan rates higher, which could deter more buyers, Yoon said, prompting dealers and manufacturers to start offering discounts to lure them back.

“We’re all waiting for the dominos to start falling on the discount front,” Yoon said. “As soon as somebody starts doing that aggressively, others will follow.”
They’re seeing signs of that happening, Yoon said, but at the moment it’s limited to one or two models here and there. He said maybe by fall you’ll see more noticeable discounts — hopefully even sooner.
And finally, don’t feel pressured to sign anything. Take your time to comparison shop and make sure that what you’re buying will fit into your budget.
Remember: “It’s your hard-earned money,” Yoon said. “It’s a ton of money and you should feel comfortable spending it.”
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It is not too late to apply for financial aid, or appeal for more — even for high school seniors or students currently enrolled.
Financial aid is determined by income from past years, so if your financial situation has changed, so can your aid amount.
Many scholarships are available from schools when students have been accepted, so it pays to learn about the opportunities.

Rawf8 | Istock | Getty Images

Higher education often costs more than most families can afford. A new report by NerdWallet shows the high school class of 2023 is facing a little more than $37,000 in student loan debt to receive a college bachelor’s degree.
Tuition and fees plus room and board for a four-year private college averaged $53,430 in the 2022-23 school year, according to the College Board; at four-year, in-state public colleges, it was $23,250.

College affordability and dealing with the debt burden are top concerns for most parents and high school students, according to The Princeton Review’s 2023 College Hopes & Worries survey, where almost all families — 98% — said financial aid would be necessary to pay for college, and 82% said it was “extremely” or “very” necessary.
As the mother of a college sophomore and high school senior, I know thinking about paying for college is daunting. Here are some cost-saving strategies that may help:

1. Apply for financial aid, then appeal for more

If your child is a high school senior or a current college student, it is not too late to apply for financial aid —or appeal for more. Even if the student committed to the school on or before National College Decision Day on May 1, the aid award letter received is not necessarily the final word.
“Most schools will not have their class 100% committed by May 1, so that means there is an opportunity to have a conversation about admission, financial aid and scholarships,” said Robert Franek, editor-in-chief of The Princeton Review. 
Every year, high school graduates miss out on billions of dollars in federal grants because they don’t fill out the Free Application for Federal Student Aid, or FAFSA. Some schools may also require you to fill out the CSS Profile on the College Board website to get access to nonfederal financial aid.

Financial aid is determined by income information that is not necessarily up to date. Aid for the 2023-24 academic year is based on 2021 income. 
More from Personal Finance:How to avoid taking on too much college student debtPaused student loan payments expected to restart soonExperts say Supreme Court will doom Biden loan forgiveness
“That information that’s being used to evaluate and make a judgment of your situation is a snapshot, and that snapshot is old,” said Mark Salisbury, founder of TuitionFit, an online platform that helps students and families with determining college affordability. If your circumstances are now different, that should be brought to the financial aid office’s attention, he said.
If you’re concerned about making ends meet based on the financial aid award letter your child has already received, you can still ask for more aid. If you’ve experienced a job loss, a disability, a divorce or another change in your financial situation, send an appeal letter to the college’s financial aid office. 
“The FAFSA also doesn’t take into account the cost of living,” Salisbury said. “So if you live in Manhattan with a $300,000 income, that’s different from if you’re from Davenport, Iowa, with a $300,000 income.
“The FAFSA doesn’t pay attention to that at all,” he added. “If you’re in an expensive place to live, you may need to explain your cost of living as part of the appeal.”

Your appeal letter should include documents showing any changes in assets, income, benefits or expenses. You can find free templates online that can help you write an appeal letter at websites such as Road2College and SwiftStudent. 
TuitionFit can help you compare your award letter to other offers that families with similar financial backgrounds have received at no cost. You can use that information to help you ask for a better deal.
Also, since the FAFSA is for a single academic year, you have to submit this form every year. Just because you did not qualify one year does not mean you won’t qualify in future years, particularly if there’s been a significant change in your family’s finances. 

2. Seek out private scholarships

Consider sources of merit-based aid, as well, especially if the financial aid package you received does not meet your needs or your student does not qualify for need-based aid. 
More than $6 billion in scholarships is awarded to college students each year, according to an analysis of U.S. Department of Education data by higher education expert Mark Kantrowitz. Check with the college or ask your high school counselor about opportunities. 

That information that’s being used to evaluate and make a judgment of your situation is a snapshot, and that snapshot is old.

Mark Salisbury
founder of TuitionFit

“The majority of scholarships will come from the colleges and universities that students apply to and are accepted at,” Franek said. “So performing well throughout your high school career is not only important for admission but also for scholarship awards.” Keep in mind SAT and ACT scores are often used — even at test-optional schools — in combination with GPA in competition for scholarship awards. 
Also search free scholarship-matching websites, such as the College Board’s Big Future, Fastweb and Scholarships.com. Check with local clubs, religious organizations, and employers, too. 

3. Consider a community college

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You can cut the overall tuition bill dramatically by taking classes at a community college or spending two years there to get an associate degree. More than half of states even have policies that guarantee that students with an associate degree can then transfer to a four-year state school as a junior.
At two-year public schools, tuition and fees averaged $3,860 for the 2022-23 academic year, according to the College Board. At in-state four-year public schools, on average, tuition alone is $10,940; at four-year private universities, it averages $39,400. 
Course sharing is another cost-saving strategy. Many classes taken in the summer or at night at a local community college can count toward a student’s coursework at a four-year institution.

4. Leverage dual enrollment and AP courses

Your children can be resourceful in helping to cut college costs, too. They can start helping in high school by taking Advanced Placement courses, which may transfer to college credits, depending on the student’s score and the school. You can go to the AP Credit Policy Search on the College Board website to find out what credit or placement a particular college offers for AP scores. 
Students can also save money while in high school by taking college classes through a state-run dual-enrollment program, which allows them to take college-level classes, often through a community college.

5. Use money from part-time jobs to defray costs

Jacoblund | Istock | Getty Images

While parents’ income and savings cover about 43% of college costs, according to Sallie Mae’s 2022 How America Pays for College report, 11% is covered by the student’s income and savings. 
Your child may have already saved money from a part-time job in high school or plans to get a part-time job in college or take on a work-study position as part of their financial aid package. 
Contributing some of the student’s income may help cut college costs. Keep in mind in financial aid calculations, however, that parents are expected to contribute a much lower percentage of their assets to college costs than are students. So a part-time job could affect your student’s financial aid if they make above a certain amount. 
Some student income is “protected” to cover living expenses and other costs. For the 2023-24 FAFSA, up to $7,600 of a dependent student’s income is protected, and work-study is not factored into the FAFSA formula for the income that the family is expected to contribute to college costs. 
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The Children’s Health Insurance Program may be a coverage option for kids of parents who have recently lost their Medicaid coverage, or soon expect to.
CHIP is a joint federal and state program that offers health insurance to children from households with incomes too high to qualify for Medicaid, but too low to afford private insurance.
Here’s what you need to know.

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Now that a pandemic-era policy that guaranteed Medicaid enrollees wouldn’t be dropped from their coverage has come to an end, affected parents may be worried about how to keep their children insured.
Under the Families First Coronavirus Response Act, states were required to provide continuous Medicaid coverage to enrollees in order to get federal funding. Beginning in April, however, states were able to resume their usual eligibility redetermination process, which could result in as many as 14 million people becoming uninsured, according to the Kaiser Family Foundation. 

“Millions of children are in danger of losing their coverage,” said Caitlin Donovan, a spokesperson for the National Patient Advocate Foundation.
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The Children’s Health Insurance Program, ​or CHIP, may be a coverage option for many people under the age of 19. CHIP is a joint federal and state program that offers health insurance to children from households with incomes too high to qualify for Medicaid, but too low to afford private insurance.
Here’s what you need to know.

Kids may qualify for Medicaid even if parents don’t

Parents who lose their Medicaid coverage during the disenrollment period shouldn’t assume that their children no longer qualify either, Donovan said. Kids can be eligible for Medicaid at higher income levels than adults, she explained.

If you receive a notice that your health insurance coverage is ending, try to find out if your child will be kept on the plan.
“Basically, double-check everything,” Donovan said. “These are not family plans.”

Income eligibility for CHIP varies by state

If your child is also being dropped from Medicaid, it is then time to see if they qualify for CHIP, experts say.
Income eligibility for CHIP varies by state. In some cases, children can still qualify if their family has a six- figure annual income, said Kosali Simon, professor of health economics at the O’Neill School at Indiana University.
In other words: Don’t assume you earn too much without checking your state rules.

Children in some states may be eligible for CHIP even if their parents receive health insurance from their employer, Simon added.
“It’s easy to find out if your kids qualify for CHIP,” Simon said, recommending families start at HealthCare.gov. Benefits.gov is another helpful resource, she said.
Donovan recommends families search online for their state CHIP program to apply, or that they call 1-800-318-2596.

Kids can enroll with CHIP at any time

If you’re dropped from Medicaid, your state should provide you with information on how to appeal the decision, Donovan said. Anyone who loses their appeal for Medicaid coverage can then look for insurance on the public exchange, where a special enrollment period is open through July.
If your child is also no longer eligible for Medicaid, you can apply for CHIP for them at any time, Donovan said. “There’s no special enrollment period for CHIP like there is for other insurance programs,” she said.
The costs of CHIP coverage depends on your state and income, Donovan said. For families with lower incomes, coverage should be free for routine visits, emergencies, prescriptions and dental, she added.

“In some states, parents whose income is higher may be subject to co-pays and premiums for certain services,” Donovan said.
There are a few pitfalls to the coverage parents should be aware of, she said. Some states impose a 90-day waiting period before eligible children can begin receiving coverage. Meanwhile, some children can be locked out of CHIP if their parents fail to pay the premiums on time. More

The Federal Reserve raised interest rates by a quarter of a point at the end of its two-day policy meeting.
This 0.25 percentage point hike marks the 10th time the Fed has raised its benchmark interest rate over the past year or so, the fastest pace of tightening since the early 1980s.
A wide range of borrowing costs — from mortgages and credit cards to auto loans and student debt — are affected by the rate increase.

The Federal Reserve Bank building
Kevin Lamarque | Reuters

What the federal funds rate means to you

The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and saving rates they see every day.
This rate hike will correspond with a rise in the prime rate and immediately send financing costs higher for many forms of consumer borrowing. On the flip side, higher interest rates also mean savers will earn more money on their deposits.

Here’s a breakdown of how it works:

How higher rates are affecting your wallet

Credit cards
Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles.
Credit card annual percentage rates are now over 20%, on average, an all-time high. With most people feeling strained by higher prices, more cardholders carry debt from month to month.
“Now people are racking up debt and borrowing at high rates and that’s troublesome,” said Tomas Philipson, University of Chicago economist and a former chair of the White House Council of Economic Advisers.
With this rate increase, consumers with credit card debt will spend an additional $1.7 billion on interest, according to an analysis by WalletHub. Factoring in the hikes between March 2022 and March 2023, credit card users will wind up paying at least $31.7 billion in extra interest charges over the next 12 months, WalletHub found.
Home loans

Boonchai Wedmakawand | Moment | Getty Images

Although 15-year and 30-year mortgage rates are fixed, and tied to Treasury yields and the economy, anyone shopping for a new home has lost considerable purchasing power, partly because of inflation and the Fed’s policy moves.
Rates are now off their recent peak, but not by much. The average rate for a 30-year, fixed-rate mortgage currently sits at 6.48%, according to Bankrate, down slightly from November’s peak but still much higher than it was a year ago.
“This goes to show just how hard it is for many buyers to overcome today’s persistently high home prices and mortgage rates,” said Jacob Channel, senior economic analyst at LendingTree.
Other home loans are more closely tied to the Fed’s actions. Adjustable-rate mortgages, or ARMs, and home equity lines of credit, or HELOCs, are pegged to the prime rate. Most ARMs adjust once a year after an initial fixed-rate period. But a HELOC rate adjusts right away. Already, the average rate for a HELOC is up to 7.99%, according to Bankrate.
Auto loans
Even though auto loans are fixed, payments are getting bigger because the prices for all cars are rising along with the interest rates on new loans. So if you are planning to buy a car, you’ll shell out more in the months ahead.
The average rate on a five-year new car loan is now 6.58%, according to Bankrate.
The Fed’s latest move could push up the average interest rate even higher, right at a time when borrowers are already struggling to keep up with bigger monthly loan payments.
Student loans

Kameleon007 | Istock | Getty Images

Federal student loan rates are also fixed, so most borrowers aren’t immediately affected by rate hikes. The interest rate on federal student loans taken out for the 2022-23 academic year already rose to 4.99%, and any loans disbursed after July 1 will likely be even higher. Interest rates for the upcoming school year will be based on an auction of 10-year Treasury notes later this month.
For now, anyone with existing federal education debt will benefit from rates at 0% until the payment pause ends, which the U.S. Department of Education expects to happen sometime this year.
Private student loans tend to have a variable rate tied to the Libor, prime or Treasury bill rates — and that means that, as the Fed raises rates, those borrowers will also pay more in interest. How much more, however, will vary with the benchmark.
Savings accounts and CDs
While the Fed has no direct influence on deposit rates, those tend to be correlated to changes in the target federal funds rate. The savings account rates at some of the largest retail banks, which were near rock bottom for years, are currently up to 0.39%, on average.
Thanks, in part, to lower overhead expenses, top-yielding online savings account rates are as high as 4.5%, much higher than the average rate from a traditional, brick-and-mortar bank, according to Bankrate.

Rates on one-year certificates of deposit at online banks are closer to 5%, according to DepositAccounts.com.
With more economic uncertainty ahead, consumers should be taking aggressive steps to secure their finances — including paying down high-interest debt and boosting savings, McBride advised.
“Grabbing a 0% credit card balance transfer offer or putting your emergency fund in a high-yield online savings account are good first steps.”
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Credit card interest rates are already at record highs and are expected to increase even more if the Fed raises its benchmark rate this week.
Fortunately, consumers hit with a high annual charges have options.

Zeynepkaya | E+ | Getty Images

It’s an especially expensive time for people with credit card debt, and the pain will likely only worsen with another expected interest rate hike coming from the Federal Reserve this week.
Interest charges on credit cards tend to move with the Fed’s benchmark rate. The current national average rate on plastic is already more than 20%, which is the highest it has been in decades.

“Many people we speak with are feeling squeezed,” said LaDonna Cook, a manager at GreenPath Financial Wellness, a national nonprofit debt counselor.
Here’s what consumers need to know about the rising rates on their cards — and what they can do about it.

Your interest rate could increase within a month

In an effort to combat inflation, the Fed has already raised its rate nine times over the past year or so, explaining why interest rates on credit cards are this high.
“Rates jumped more in 2022 than any other year on record,” said Ted Rossman, senior industry analyst at Bankrate. He added that “rates will probably go slightly higher from here.”
If there’s another hike this week from the central bank, consumers can expect to see their credit card rate inch up “within a month or two,” Rossman said.

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It’s more important than ever to be aware of the interest you’re paying. Some card issuers are charging “eye-popping” rates, Rossman said. For example, First Premier Bank charges annual percentage rates as high as 36%.
Your credit card statement should list your interest rate, and you can also find it online by logging into your account, Rossman said.
The rate doesn’t really matter, he said, if you pay off your credit card balance every month.
However, if you don’t do that, “interest costs can be steep and accumulate quickly,” Rossman said.

There are ways to pay less interest

For those struggling with credit card debt, Rossman said he recommends first looking to see if you qualify for a so-called 0% balance transfer card.
These cards allow you to move your existing debt on to a new card, with an introductory period in which you don’t pay any interest (although there’s usually a fee to do the transfer).
“You can avoid interest for up to 21 months,” Rossman said.

Another option is taking out a personal loan and using the funds to pay off your credit card debt. You’ll have a new monthly payment from the loan, but if your credit is good, the interest rate may be as low as 7%, Rossman said.
For those with a lower credit score and a lot of debt, a reputable nonprofit credit counseling agency, like Money Management International, can match you with debt-management plans with rates as low as 7%, he said.
GreenPath manager Cook said you can also try asking your credit card issuer if it will lower your interest rate. “If your credit is less than optimal, consider building [it] up before making the request,” she said.

Paying a little more each month can go a long way

Cardholders should also consider paying just a little more than the minimum payment each month to save time and interest, Rossman said.
He provided this example: If someone paid only the smallest possible payment each month toward their credit card balance of $5,805 (the national average), they’d be in debt for more than 17 years and in excess of $8,300 in interest, assuming they were getting dinged the average current interest rate of more than 20%.
But if they paid just an extra $50 a month their timeline would drop to six years and they’d save $5,000 in interest charges. More

An Asian American, Native Hawaiian and Pacific Islander woman has to work 15 months to earn what a white man makes in one year, according to the National Women’s Law Center.
But that doesn’t tell the whole story. 
The reality is, “she is never, ever going to catch up,” says Jasmine Tucker, director of research at the National Women’s Law Center. 

Some consider April 5 equal pay day for Asian American, Native Hawaiian and Pacific Islander women, marking the point into the new year that the average AAPI woman has to work to make the same pay white men earned in 2022.
In other words, an AAPI woman has to work 15 months to earn what a man makes in one year, according to an analysis by the National Women’s Law Center. But that doesn’t tell the whole story, cautioned Jasmine Tucker, the NWLC’s director of research. 

The reality is, “she is never, ever going to catch up,” Tucker said.
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Although AAPI — also referred to as AANHPI — communities together constitute the fastest-growing ethnic group in the U.S., “systemic barriers to equity, justice and opportunity put the American dream out of reach of many,” according to the Biden administration.
During the pandemic, AAPI women endured disproportionately more job losses and were more likely to have child-care needs impact their ability to work.
At the same time, persistent gender inequities suppressed wages and caused a crisis in savings as inflation took hold, Tucker said. “Some of these women are still digging out,” she added. “Another recession at this point is a really scary prospect.”

Pay gap worsens for some AAPI communities

Today, AAPI women are typically paid just 92 cents for every dollar paid to white men, although the pay gap varies significantly for some AAPI communities.
For example, Bhutanese women working full time earn just 48 cents compared to white men.
Over time, that inequality is magnified. Based on today’s wage gap, an AAPI woman just starting out will lose $267,760 over a 40-year career, according to the NWLC’s analysis.

Some of these women are still digging out. Another recession at this point is a really scary prospect.

Jasmine Tucker
director of research, National Women’s Law Center

For Bhutanese women, the lifetime wage gap totals more than $1.3 million, and for Burmese women, the losses are close: $1.2 million.
Nepalese women also lose more than $1.1 million, and Hmong and Cambodian women lose more than $1 million dollars to the wage gap over the course of their careers, the nonprofit advocacy group found.
That translates into many “missed opportunities for wealth building,” Tucker said, like the ability to buy a home, pay for their children’s education, start a business or save for retirement.
There are, however, four groups of AAPI women working full time who make more than white men — including Chinese women, Indian women, Malaysian women and Taiwanese women — and yet, these women still make less than men in their own respective communities. 

There are initiatives that can help, Tucker added, like the Paycheck Fairness Act, which aims to eliminate pay discrimination and strengthen workplace protections for women, and pay transparency laws, which require employers to list their minimum and maximum salary ranges on publicized job postings.
The idea is that pay legislation will bring about pay equity, or essentially equal pay for work of equal or comparable value, regardless of worker gender, race or other demographic category.
With or without legal requirements, “there’s a lot we could do,” Tucker said.
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