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    Want a risk-free 5% return? How to buy a 3-month Treasury

    Bond yields surged Tuesday as Federal Reserve Chair Jerome Powell said interest rates may have to remain higher for longer to quell inflation.
    In particular, the 3-month Treasury yield leapt over 5%, touching levels last seen in 2007.
    For investors hoping to put idle cash to work, there’s an opportunity to snap up short-term Treasurys and earn an attractive risk-free return.

    Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 3, 2023.
    Brendan Mcdermid | Reuters

    The latest spike in bond yields was enough to spook the stock market into a sell-off Tuesday, but there’s a silver lining for fixed income investors: Short-term Treasurys are now touting a risk-free return of 5%.
    The latest action follows comments from Federal Reserve Chair Jerome Powell, who said Tuesday that interest rates are “likely to be higher” than previously expected. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” he said.

    related investing news

    The yield on the 3-month Treasury touched a high of 5.015% on Tuesday, the highest level since 2007. (Note: that yield is annualized, not what you would get in just three months.)
    Rates on the 1-year bill and 2-year Treasury note – the latter of which is most sensitive to the Fed’s policy – also popped more than 5% on Wednesday morning, reaching levels last seen in 2006 and 2007, respectively. Bond yields move inversely to prices.

    Stock chart icon

    Treasury rates have popped higher as the Fed continues its rate-hiking campaign.

    A piece of the action

    Short-term Treasurys are a great way to put idle cash to work, and you can also “ladder” them to get a little interest on your money over a certain term. This means you build a portfolio of issues with different maturities and reinvest the proceeds as they mature.
    Investors can get in on the action in a couple of ways.
    First, they can purchase Treasurys directly from the U.S. government via TreasuryDirect.gov. They will have to set up an account on the site and link their bank to it. For short-term investors, 4-week, 8-week, 13-week and 26-week T-bills are auctioned every week. Two-year notes are auctioned monthly, and 10-year Treasurys are auctioned every quarter.

    If you hold the Treasury to maturity, you aren’t subject to market risk. The bonds generally pay interest twice a year, but for T-bills, the interest you get is the difference between what you paid and the face value you receive at maturity.
    Another way for investors to buy Treasurys is through a brokerage firm. This makes record-keeping easier for investors, especially if they already have an individual retirement account at a given firm.
    The issue is that you may be subject to fees and minimum purchase requirements if you buy Treasurys through a brokerage account. Consider that you can buy Treasurys directly from the government with a minimum purchase amount of $100, but a brokerage firm can charge you for broker-assisted trades. Others require that you buy at least $1,000 in Treasurys.
    Though Treasurys are considered risk-free because their payments are backed by the full faith and credit of the United States government, investors should be aware that the real rate of return they’re earning could be eaten away if inflation rises at a pace greater than the yield. A further risk is they may also miss out on investment opportunities in other assets like stocks.
    These bonds may be a great way to get some interest on otherwise idle cash, but they shouldn’t make up the entirety of your portfolio.
    — CNBC’s Michelle Fox and Gina Francolla contributed to this story.

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    Supreme Court Justice Barrett could be swing vote on Biden student loan forgiveness plan

    Supreme Court Justice Amy Coney Barrett is the conservative justice who seemed the most unconvinced by the plaintiffs challenging student loan forgiveness.
    Even if Barrett finds that the plaintiffs don’t have standing to sue, she’d have to convince another conservative justice to come to her side for Biden’s student loan forgiveness plan to survive.
    Barrett may be able to convince Justice Brett Kavanaugh or Chief Justice John Roberts.

    U.S. Supreme Court Associate Justice Amy Coney Barrett.
    Evelyn Hockstein | Reuters

    The fate of the Biden administration’s sweeping plan to cancel $400 billion in student loan debt for tens of millions of Americans may hinge on the newest conservative member of the Supreme Court: Justice Amy Coney Barrett.
    Barrett was the conservative justice who seemed the most unconvinced by the plaintiffs challenging student loan forgiveness, said Jed Shugerman, a law professor at Fordham University. Specifically, Shugerman said, Barrett didn’t seem to agree that they’d proven they have standing to sue.

    “Barrett was vocally and deeply uncomfortable about ruling that any of the plaintiffs had standing,” Shugerman said.
    More from Personal Finance:Why Social Security retirement age, payroll tax may changeExperts argue Social Security retirement age shouldn’t pass 67Return on waiting to claim Social Security is ‘huge’
    As a rule, plaintiffs must prove that a policy would cause them injury in order to challenge it in the courts.
    That requirement, which has long been defended by conservative justices, especially former Justice Antonin Scalia, is meant to avoid people using the legal system to fight policies they do not like or agree with.
    The six GOP-led states that brought a lawsuit against President Joe Biden’s plan argue that the debt cancellation for up to $20,000 per borrower would decrease profits for companies in their states that service federal student loans. That argument has become focused on the Missouri Higher Education Loan Authority, or MOHELA.

    Nebraska’s solicitor general, James Campbell, who argued on behalf of the states in front of the justices on Feb. 28, said Biden’s plan threatened to eat away at MOHELA’s operating revenue by as much as 40%.

    Barrett seemingly unsatisfied by plaintiff arguments

    But Barrett asked Campbell why MOHELA itself was not suing to block the plan instead of Missouri.
    Officials at MOHELA recently said it had no involvement in Missouri Attorney General Eric Schmitt’s decision to sue against the program.
    “Do you want to address why MOHELA’s not here?” Barrett asked.
    Campbell replied, “MOHELA doesn’t need to be here because the state has the authority to speak for them.”
    Barrett wasn’t satisfied by that answer.
    “Why didn’t the state just make MOHELA come then?” she asked. “If MOHELA is really an arm of the state … why didn’t you just strong-arm MOHELA and say you’ve got to pursue this suit?”

    Many commentators were asking, ‘Where is the Missouri SG?’ It’s like, Where’s Waldo?”

    Jed Shugerman
    law professor at Fordham University

    Campbell answered: “Your honor, that’s a question of state politics.”
    Shugerman, the law professor, said Campbell fumbled to explain how a loss in revenue for MOHELA would harm Missouri.
    “The Nebraska solicitor general was unconvincing,” Shugerman said. “It was a mess.”
    Shugerman also criticized the decision to have Nebraska’s top state attorney argue the case in front of the justices as opposed to the solicitor general of Missouri. He said that would have been appropriate because Missouri is the state with the best claim of an injury.
    “Many commentators were asking, ‘Where is the Missouri SG?'” he said. “It’s like, ‘Where’s Waldo?'”

    Plan’s survival depends on 2 conservative votes

    Barrett alone can’t save the program.
    The liberal justices — Elena Kagan, Ketanji Brown Jackson and Sonia Sotomayor — are almost certain to vote in favor of the plan, Shugerman said.
    On the other hand, three conservative justices, Clarence Thomas, Neil Gorsuch and Samuel Alito are likely to vote against it, he said.
    Because of that, the Biden administration will likely need to convince not just Barrett but at least one of the other two conservative members of the court, Chief Justice John Roberts and Justice Brett Kavanaugh.

    “If she is a fourth vote, the question is, can she convince a fifth?” Shugerman said.
    If the justices ignore the states’ lack of standing, they risk allowing any state or individual to challenge almost any federal program, said Steven Schwinn, a law professor at the University of Illinois Chicago.
    “This is no way to run a federal democracy,” Schwinn said. “If the plaintiffs have a problem with loan cancellation, they should take it up through political processes.”

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    From dual enrollment to course sharing, these 4 moves can help you save big on college costs

    These days, students have to be resourceful when it comes to cutting college costs.
    Here are some of the best — and often underrated — money-saving options for high schoolers.

    asiseeit | Getty Images

    These days, students and their families have to be proactive about cutting college costs.
    “It used to be, get into the best school you can get into and then figure out how to pay for it,” said Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College.”

    Now, Chany says, “that’s a recipe for disaster.”
    As inflation heats up, tuition alone at many colleges and universities is prohibitively high. About 83% of high school students said the current economic conditions have affected their ability to pay for college, according to a recent survey by scholarship search site ScholarshipOwl.
    More from Personal Finance:College is still worth it, research findsApprenticeship programs are becoming more popularThe cheapest states for in-state college tuition
    Further, 88% plan to work part- or full-time to afford school. But there are other ways to rein in costs.
    Even if you don’t have a well-funded 529 college savings plan, a few tried-and-true money-saving techniques can help.

    Here are some of the best — and often underrated — options for high schoolers.

    1. Take college courses in high school

    Dual enrollment is a state-run program that allows students to take college-level classes, often through a local community college, while they are still in high school.
    As many as 3 in 10 community college students are in dual enrollment programs, according to the American Association of Community Colleges.
    Unlike Advanced Placement, the program in which high school students take courses and exams that could earn them college credit, dual enrollment credits are more likely to transfer.

    In some cases, students may even be able to complete an associate’s degree by the time they finish high school, a process known as “early college.”
    Over four years, early college programs cost about $3,800 more per student than traditional high school, according to one study. However, the estimated return on that investment is about $33,709 in increased lifetime earnings.
    Before committing, research your state’s program to check the requirements and see how the credits will apply toward a degree.

    2. Pile on Advanced Placement credits

    Similarly, taking AP classes in high school — and scoring at least 3 out of 5 on the official exams at the end of the course — can earn students credit hours once they are in college.
    Potentially, the more AP classes that a high school student can bank now, the fewer college courses they’ll have to pay for later — as long as the college gives credit for that coursework.
    According to the College Board, the average student takes three AP exams over the course of their high school career, which means, if successful, you could reduce your time in college by an entire semester, potentially saving up to $15,000 or more.

    Arrows pointing outwards

    But check the guidelines on Advanced Placement first. Each college has its own policies for awarding credit — although just completing the coursework may give you a leg up.
    “APs work more to show that you excelled in high school,” said Hafeez Lakhani, founder and president of New York-based Lakhani Coaching, which helps during the college application process.
    “It’s one of the most trusted ways to show you are challenging yourself with an advanced curriculum.”

    3. Transfer from community college

    A two-year program is not necessarily an alternative to a four-year degree. Increasingly, students go from community college to a four-year school.
    “It’s a very smart way to start your higher education,” said Martha Parham, senior vice president of public relations at the American Association of Community Colleges. “A state university is about three times the cost for the same first two years.”

    A state university is about three times the cost for the same first two years.

    Martha Parham 
    senior vice president of public relations at the American Association of Community Colleges

    At two-year public schools, tuition and fees are $3,860 for the 2022–2023 academic year, according to the College Board. Alternatively, at in-state four-year public schools, tuition is $10,940 and at four-year private universities it averages $39,400.
    Today, about half of all community college students go on to earn a bachelor’s degree, according to data from the National Student Clearinghouse Research Center.
    At least 35 states even have policies that guarantee that students with an associate’s degree can then transfer to a four-year state school as a junior.

    4. Try course sharing

    If you are already enrolled in a four-year school, tapping community college courses can still be a worthwhile way to cut costs, a strategy known as course sharing.
    In this case, students may be able to take a class at their local community college over the summer or at night and have it count toward their coursework.
    In the wake of the pandemic, the online offerings have improved dramatically, making it even easier for students to work in classes from other institutions that are either less expensive or more accessible, keeping them on budget and on track for graduation.
    “Sometimes those same courses are going to be cheaper at a community college,” Chany said. However, there is still the risk that those credits won’t count.

    Compare the classes at community college with what’s offered at the four-year school, Chany advised. “If there is not a similar course offered at the four-year school, then likely the credits for that course at the community college will not be transferable, defeating the main purpose of this option.”
    This is where students must advocate for themselves, according to Jay Field, senior vice president of institutional partnerships at Quottly, a platform for course and program sharing between colleges.
    Call the college, speak to someone in the registrar or admissions office and an academic advisor, he said. 
    “Don’t talk to your cousin Jimmy who took one class in 2002; it may be different now,” Parham added. “Colleges want to help you succeed, so don’t be afraid to reach out.”
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    5 ways to file your taxes for free this season

    Ask an Advisor

    The federal tax deadline is only six weeks away, and if you haven’t filed yet, you may qualify for free preparation.
    There are several free filing options to consider, depending on your income, age, location and occupation.

    D3sign | Moment | Getty Images

    The April 18 federal tax deadline is only six weeks away, and if you haven’t filed yet, you may qualify for free preparation.
    While many prefer a paid preparer, free filing options may be worth exploring for simple returns, such as filings with only a couple of W-2 forms, for example.

    The IRS is reopening taxpayer assistance centers on March 11, and while these offices don’t offer tax preparation, they can direct you to free local options, the agency announced this week.
    More from Personal Finance:Inflation boosted the 2023 federal income tax bracketsHere are 3 key things to know before filing your taxesMissing tax forms will delay your refund, expert warns
    Here are five free tax filing options to consider, based on your income, age, location, occupation and more.

    1. IRS Free File

    IRS Free File offers free online guided tax preparation for your federal tax returns and some state filings if your adjusted gross income was $73,000 or less in 2022. 
    The program is a partnership between the IRS and several private tax software companies, meaning you can browse providers or use the agency’s lookup tool to find the best match based on location, income and other factors. 

    It’s a good option for those who have simple returns, don’t need ongoing tax planning advice and could benefit financially from the free service.

    Judy Brown
    Senior financial advisor at SC&H Group

    While most filers are eligible, few currently use the service. Although 70% of taxpayers qualify for IRS Free File, only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate.
    “It’s a good option for those who have simple returns, don’t need ongoing tax planning advice and could benefit financially from the free service,” Judy Brown, a certified financial planner at SC&H Group in the Washington and Baltimore area, previously told CNBC.

    2. Volunteer Income Tax Assistance

    Operating for more than 50 years, the Volunteer Income Tax Assistance program, or VITA, provides free in-person electronic tax preparation in locations such as community centers, libraries, schools and more throughout the country.
    You may qualify for the service if you generally earned $60,000 or less, have a disability or have limited English proficiency, according to the Taxpayer Advocate Service. You can plug your ZIP code into this tool to find providers near you. 

    Thilan Kiridena, a CFP and founder of Capital Elements in New York, said VITA volunteers can handle tax-related questions, but may not be able to tackle complex returns.

    3. Tax prep for older Americans

    Older Americans may also qualify for free in-person and virtual tax help through the AARP Foundation Tax-Aide program.
    While the service targets low- to moderate-income filers ages 50 and older, it’s open to filers of all ages with less complicated returns. You can find a location through the AARP Tax-Aide website.
    The program works with VITA and Tax Counseling for the Elderly, or TCE, which also provides free tax preparation for those who qualify.

    4. MilTax

    Another free option, MilTax, is a program for service members, qualifying veterans, family members and more, provided by the U.S. Department of Defense.
    The service includes tax preparation and filing software, along with personalized guidance. Eligible taxpayers can use MilTax for electronic federal returns and up to three state filings for free, according to the IRS.

    “MilTax is a great resource for military families as it understands the nuances of the different types of military pay,” said Desiree Kaul, a CFP at Main Street Planning in Satellite Beach, Florida.

    5. Free Fillable Forms

    If your adjusted gross income is above $73,000 and you don’t qualify for the other options, you may also consider Free Fillable Forms for current year federal returns.
    The program is similar to filing paper returns online, without software or guidance. You can learn more about Free Fillable Forms here. More

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    Retirement savers can position for a ‘comeback’ after 2022 losses, says advisor. Here’s how

    Retirement 401(k) account balances lost nearly one-quarter of their value in 2022, but there is still the potential for a comeback this year, one expert says.
    Odds are that “a rebalance, like a regular haircut, is needed,” according to Winnie Sun, a member of CNBC’s Advisor Council.

    “If you’ve suffered losses in your 401(k) last year, you’re certainly not alone,” said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC’s Advisor Council.
    “It’s important to remember that as long as you haven’t sold those investments, you haven’t realized the loss, either, and there is a potential for a comeback.”
    It’s reasonable to expect that portfolios will continue to improve in the next year, or even by year-end, she said.

    How to bounce back from 401(k) losses

    One very important practice every investor should do is to review their investment allocation at the start of the year, Sun advised. 

    That means this is a good time to check if your allocation still meets your needs, she said. If you’re not sure, consult with a financial advisor to help you calculate your risk tolerance and your investment time horizon and see if how you’re invested still works for you. 
    Odds are that it probably doesn’t, Sun said, and “a rebalance, like a regular haircut, is needed.”
    More from Personal Finance:Why Social Security retirement age, payroll tax may changeExperts argue Social Security retirement age shouldn’t pass 67Return on waiting to claim Social Security is ‘huge’
    Even if one sector of the financial markets performed well, you can’t assume that will continue. “So, if you are too heavily weighted in large-cap growth, for example, but less so in international, it’s better to build a more sustainable diversified portfolio,” she said. 
    After a tumultuous year, many older Americans are concerned about their retirement security. Nearly half, or 48%, of retired Americans believe they’ll outlive their savings, a separate report by Clever Real Estate found.
    “Everyone is feeling pressure financially — there’s a lot of uncertainty out there in the markets and the economy,” said Mike Shamrell, Fidelity’s vice president of thought leadership.

    However, “a lot of people understand there’s going to be ups and downs,” he added. “Don’t let short-term economic events derail your long-term retirement savings efforts.”
    “If your time horizon is long, and you’re able to afford to do so, consider adding during market dips,” Sun advised. “If you’re buying quality investments long term, this will help you buy more shares since the market is down.”
    To that end, try to increase your 401(k) contribution percentage this year, she said.
    The average 401(k) contribution rate, including employer and employee contributions, currently sits at 13.7%, just below Fidelity’s suggested savings rate of 15%.
    Subscribe to CNBC on YouTube.

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    Here’s how much you need to save every month to earn $70,000 per year in interest for retirement

    While the thought of funding your retirement adequately might be daunting, if you start planning now you’ll certainly be thankful later. It also might not be as difficult as you think.
    Retirement usually entails replacing your onetime annual salary from a workplace with other income sources to maintain your current lifestyle. While Social Security may cover part of your budget, the rest of your money will most likely need to come from your savings and investments.

    CNBC crunched the numbers, and we can tell you how much you need to save now to get $70,000 every year in retirement — without taking a bite out of your principal.

    More from The New Road to Retirement:

    Here’s a look at more retirement news.

    First, there are some ground rules. The numbers assume you will retire at age 65 and that you currently have no money in savings.
    Financial advisors typically recommend the mix of investments in your portfolio shift gradually to become more conservative as you approach retirement. But even in retirement, you’ll likely still have a mix of stocks and bonds, as well as cash. For investing, we assume a conservative annual 6% return when you are saving and an even more conservative 3% rate during your “interest-only” retirement.
    We also do not factor in inflation, taxes or any additional income you may get from Social Security or your 401(k) plan.
    Watch the video above to learn more.

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    Senators call for two changes to help encourage Social Security beneficiaries to claim retirement benefits later

    Many retirees still claim Social Security at age 62, even though their benefit checks would be bigger if they waited.
    A bipartisan group of senators is hoping two changes may help encourage beneficiaries to delay.

    Adamkaz | E+ | Getty Images

    Many Americans claim Social Security retirement benefits at the earliest age possible but see their monthly benefit checks reduced for life because they did so.
    Now, a bipartisan group of senators is proposing two changes to help encourage retirees to wait. The lawmakers include Sens. Bill Cassidy, R-La., Chris Coons, D-Del., Susan Collins, R-Maine, and Tim Kaine, D-Va.

    The proposed updates include changing the language the Social Security Administration uses around the claiming process and increasing the mailing of paper Social Security statements.
    The earliest age to claim Social Security retirement benefits is 62. However, those who claim at that age see a reduced benefit.
    More from Personal Finance:Why Social Security retirement age, payroll tax may changeExperts argue Social Security retirement age shouldn’t pass 67Return on waiting to claim Social Security is ‘huge’
    “When to claim Social Security benefits is a critical decision for older Americans planning their retirement,” the senators wrote in a letter to the Social Security Administration.
    “Most people, however, do not claim benefits at the age that would maximize their income in retirement, usually because they claim too early,” they wrote.

    Social Security beneficiaries are entitled to full benefits once they reach their full retirement age — 66 to 67, depending on their date of birth. For every year delayed past full retirement age, claimants stand to get an 8% increase.
    Yet 62 remains the most frequent claiming age, with almost 35% of men and 40% of women making that choice, the senators note, resulting in an average lifetime loss of $111,000 per household.

    There are various reasons retirees claim at the earliest possible age, the senators note, including an inability to work, financial shocks, liquidity constraints, life expectancy or the desire to pass money on to heirs.
    However, some people may start taking Social Security benefits at the soonest possible time because they are unaware of the advantages of waiting.
    Some claimants who have the capacity to wait even six months to five years longer may not be doing so because they don’t “have adequate information to make an informed choice,” said Emerson Sprick, a senior economic analyst at the Bipartisan Policy Center.

    New language would emphasize ‘maximum benefit age’

    The lawmakers are seeking to change the language the Social Security Administration uses to better convey the advantages of waiting to claim benefits.
    For example, while age 62 is currently called “early eligibility age,” the senators are calling to have that changed to “minimum benefit age.”

    Ages 66 to 67, currently referred to as “full retirement age,” would be changed to “standard benefit age.”
    Age 70 would be called the “maximum benefit age.”
    If the legislation passes, the changes would be included in all of the Social Security Administration’s educational and informational materials — “essentially anything the public sees,” noted Sprick.

    Mailed benefit statements would be more frequent

    In addition, the lawmakers also propose having every person with a Social Security number receive a Social Security statement in the mail regularly throughout their earnings history.
    The paper statements would be sent regardless of whether someone has established an online Social Security account, though opting out of the paper statements would be possible.
    The statements would provide details on how much in benefits a person may receive at ages 62 to 70.
    Paper statements would be sent whenever a person enters the work force or starts a new job. The statements would continue once every five years after a person turns 25, once every two years starting from age 55, and annually from age 60.

    Mark Edward Atkinson | Tetra Images | Getty Images

    “Having this consistent reminder and this information about the effects that your claiming age can have on your lifetime monthly benefit, we think is really important,” Sprick said.
    Research from the Bipartisan Policy Center previously identified paper statements as one method of helping to encourage Americans to claim at the right age.
    Other research has also pointed out the value of changing the benefits terminology the Social Security Administration uses.
    In addition to the legislative proposal, the senators also sent a letter to the Social Security Administration seeking more information on the factors that lead beneficiaries to claim early, the steps the agency may take to encourage more informed claiming decisions and what effects new benefit statements have had on claiming behavior.

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    What to do if Supreme Court strikes down Biden’s student loan forgiveness plan

    With the Biden administration’s student loan forgiveness plan at risk, borrowers should familiarize themselves with the existing relief options, experts say.
    Some of those options include enrolling in a forbearance or more affordable repayment plan and, in the more extreme cases, filing for bankruptcy.

    Demonstrators in favor of canceling student debt gather outside the U.S. Supreme Court in Washington, D.C., on Feb. 28, 2023.
    Bloomberg | Bloomberg | Getty Images

    Keep your payments on hold

    The Covid pandemic-era policy suspending federal student loan payments and the accrual of interest is still active.
    The U.S. Department of Education has said borrowers won’t need to start making payments on their debt again until 60 days after the litigation around its forgiveness plan resolves. If the lawsuits are still unresolved at the end of June, the bills will resume 60 days after that, at the end of August.

    If you’re unemployed or dealing with another financial hardship at that time, you can put in a request for an economic hardship or unemployment deferment. Those are the ideal ways to postpone your federal student loan payments, because interest doesn’t accrue.
    If you don’t qualify for either, though, you can use a forbearance to continue suspending your bills. Just keep in mind that with forbearance, interest will rack up and your balance will be larger — possibly much larger — when you resume paying.

    Compare alternate repayment plans

    If you find your student loan payments too high when the bills resume, you should explore the different income-driven repayment plans available. These programs aim to make borrowers’ payments more affordable by capping their monthly payments at a percentage of their discretionary income and forgiving any of their remaining debt after 20 or 25 years.
    Currently, the Biden administration is working to roll out a new repayment option under which borrowers would pay just 5% of their discretionary income toward their undergraduate student loans. The savings would be huge.
    According to an example provided by higher education expert Mark Kantrowitz, a borrower who made $40,000 a year would currently have a monthly student loan payment of around $151 under the existing Revised Pay As You Earn Repayment, or REPAYE, plan. But with the new option, that monthly bill would plummet to $30.

    I have significant concerns that there will be some big servicing delays.

    Betsy Mayotte
    president of The Institute of Student Loan Advisors

    To determine how much your monthly bill would be under different plans, use one of the calculators at Studentaid.gov or Freestudentloanadvice.org, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
    If you do decide to change your repayment plan, Mayotte recommends submitting that application to your servicer well ahead of the timeline for payments to restart. Lenders will likely be overwhelmed when they have to begin collecting loan payments from tens of millions of people again, Mayotte said.
    “I have significant concerns that there will be some big servicing delays,” she said.

    Explore other forgiveness options

    The Biden administration has recently made a number of improvements to the Public Service Loan Forgiveness program, which allows those who work for the government and certain nonprofits to get their debt cleared after a decade of payments.
    There are typically three primary requirements for public service loan forgiveness, although the recent changes provide some more wiggle room in certain cases:

    Your employer must be a government organization at any level, a 501(c)(3) not-for-profit organization or some other type of not-for-profit organization that provides public service.
    Your loans must be federal Direct loans.
    To reach forgiveness, you need to have made 120 qualifying, on-time payments in an income-driven repayment plan or the standard repayment plan.

    The best way to find out if your job qualifies as public service is to fill out the so-called employer certification form. In 2013, the Consumer Financial Protection Bureau estimated that 1 in 4 American workers could be eligible for the program.

    Jayk7 | Moment | Getty Images

    What’s more, there are dozens of other forgiveness programs across the country that many borrowers are in the dark about, Kantrowitz said.
    “There is no global database of all student loan forgiveness options,” he said.
    For example, full-time teachers who work for five consecutive years in a low-income school may be eligible for up to $17,500 in loan forgiveness under the Teacher Loan Forgiveness Program.
    The Nurse Corps Loan Repayment Program, meanwhile, allows certain nurses to get up to 85% of their student debt canceled.

    File for bankruptcy

    Among other reforms to the federal student loan system under Biden are new guidelines that will make it easier for those severely burdened by their student debt to discharge it in bankruptcy.
    Currently, it’s difficult, if not impossible, for someone to walk away from their federal student debt in a normal bankruptcy proceeding.
    “The new rules do give some hope to federal loan borrowers who may be struggling with their loans for 10 years or more,” Mayotte said.
    The federal government will be less likely to object to borrowers’ attempts at discharging their debt, Mayotte said, if they have a record of making an effort to repay their student loans but don’t have a high enough income to cover the bill while also meeting their basic needs.

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