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Even as the cost of living remains high, the number of Americans living paycheck to paycheck fell to 60% in January, according to a recent report.
“Consumers have accepted that inflation is part of their everyday lives,” says LendingClub’s Anuj Nayar.
A few key money moves can help your financial standing amid higher prices.

Despite higher prices, consumers are still spending, although not as much as they were a year ago, which is giving their budgets some breathing room.
As of January, 60% of all U.S. adults, including 45% of high-income earners, were living paycheck to paycheck, according to a new LendingClub report. That’s down from 64% a year earlier, suggesting that last year’s spending cutbacks have improved some consumers’ financial situations.

“Consumers have accepted that inflation is part of their everyday lives and they are actively making behavior changes, especially during the 2022 holiday shopping season, to adjust their spending and better manage their cash flow,” said Anuj Nayar, LendingClub’s financial health officer.
Yet the latest inflation reading from last Friday’s core personal consumption expenditures index was hotter than expected, showing some spending habits are hard to break. Consumer spending jumped 1.8% for the month compared to the estimate of 1.4%.
More from Personal Finance:Some Treasury bills are now paying 5%. Here’s what to knowAs data shows inflation rose in January, here’s what to expectAlmost half of Americans think we’re already in a recession
To make ends meet as prices increase, more Americans are leaning on credit cards, other reports show.
At the end of 2022, credit card debt hit a record $930.6 billion, an 18.5% spike from a year earlier, and average credit card balance rose to $5,805, according to the latest report by TransUnion.

Total household debt also increased by 2.4% to $16.9 trillion in the fourth quarter of last year, the Federal Reserve Bank of New York found.

Now, nearly half, or 46%, of credit cardholders carry debt from month to month on at least one card, up from 39% last year, according to another report by Bankrate.com.
“If you have credit card debt — and more than a third of Americans do — then using some of your tax refund money to pay down this high-cost debt would be an excellent choice,” said Ted Rossman, senior industry analyst at Bankrate.

How to improve your financial standing

Certified financial planner Ted Jenkin, CEO and founder of oXYGen Financial in Atlanta and a member of CNBC’s Financial Advisor Council, offers other tips for spending less and maximizing your savings.

1. Cut spending

Jenkin said some simple financial hacks can help, such as going to the grocery store less and cutting back on online shopping.
“Grocery stores are just like Las Vegas; they are there to separate you from your wallet,” he said. Meal planning is one way to edit down your shopping list to weekly essentials to save money.
Disabling one-click ordering or deleting stored credit card information can also help. “Anyone that shops on Amazon and has a stored credit card, you are basically pouring lighter fluid on your budget,” Jenkin said.

You really have to get disciplined or you’re going to outspend your income.

Ted Jenkin
CEO and founder of oXYGen Financial

Jenkin recommends waiting 24 hours before making an online purchase and then using a price-tracking browser extension such as CamelCamelCamel or Keepa to find the best price.
Finally, tap a savings tool such as Cently, which automatically applies a coupon code to your online order, and pay with a cash-back card such as the Citi Double Cash Card, which will earn you 2%.
“You really have to get disciplined or you’re going to outspend your income,” he said.

2. Boost savings

The money you put away should also work to your advantage, Jenkin said.
Although deposit rates are climbing, even a high-yield savings account won’t pay enough to keep up with the rising cost of living.
Jenkin recommends buying short-term, relatively risk-free Treasury bonds and laddering them to ensure you earn the best rates, a strategy that entails holding bonds to the end of their term.
“It’s not a huge return, but you are not going to lose your money,” he said.

Another option is to purchase federal I bonds, which are inflation-protected and nearly risk-free assets.
I bonds are currently paying 6.89% annual interest on new purchases through April, down from the 9.62% yearly rate offered from May through October 2022.
Still, this will work well as a hedge against inflation for long-term savers. The downside is that you can’t redeem I bonds for one year, and you’ll pay the last three months of interest if the bonds are cashed in before five years.
LendingClub’s paycheck-to-paycheck report is based on a survey of more than 4,000 U.S. adults in January.
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While the number of personal bankruptcies remains relatively low, it has climbed 19.3% over the last year.
Total household debt stood at $16.9 trillion in the fourth quarter of last year, according to recent data from the Federal Reserve Bank of New York.
Here are the forms of debt that can and cannot be erased in bankruptcy.

Sneksy | E+ | Getty Images

For some individuals, the solution for eliminating crushing debt is to file for bankruptcy.
While the catalyst for going that route differs from person to person, it’s worth knowing which obligations can and cannot be discharged in bankruptcy. For instance, just last week, the U.S. Supreme Court ruled in a 9-0 decision that an individual cannot discharge debt that arose due to the fraud of another person.

Although the number of personal bankruptcies remains relatively low, it has been climbing. In January, there were 29,397 individual filings, according to the American Bankruptcy Institute. That’s up 5.5% from 27,866 in December and 19.3% from 24,645 a year earlier.
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However, filings plummeted through 2021 and 2022 as pandemic aid and programs (i.e., stimulus checks, enhanced unemployment benefits, lenders allowing pauses on mortgage or rent) eased pressure on household balance sheets.
“Steep bankruptcy [drops] abated over the past year as pandemic assistance programs and lender forbearance receded, while interest rates, inflationary pressures and debt loads grew,” said Amy Quackenboss, executive director of the institute. 

Total household debt stood at $16.9 trillion in the fourth quarter of 2022, according to the Federal Reserve Bank of New York. That includes $11.9 trillion in mortgages, $1.6 trillion in student loans, another $1.6 trillion in car loans and more than $990 billion in credit card debt. However, delinquencies have remained low.

Some debts cannot be wiped out in bankruptcy

First, while most forms of consumer debt — credit card debt, personal loans, medical debt, mortgages and auto loans — are generally fair game for either eliminating or negotiating a lower payback amount in bankruptcy, that’s not true for student loan debt.
“It’s really difficult to obtain full discharge of student loans,” said Michelle Bass, a partner at Wolfson Bolton Kochis and head of the law firm’s consumer bankruptcy practice group.
“You have to prove that your circumstances will never improve … and that being forced to repay them would be an undue hardship on you,” Bass said.

Other debt that cannot be erased include child support and spousal support (alimony). And, certain other debt owed as part of a court order during divorce may also be off-limits: support to the ex-spouse in the form of, say, continuing to cover a car lease payment.
“Many jurisdictions consider intent: Is [the payment] considered domestic support?” Bass said.

Recent debt may be considered fraud

Additionally, if you incurred the debt by fraud — i.e., you knowingly led a lender astray in the application process — you may not be able to erase it.
“If the lender can show that you provided false or misleading information in filing the loan application, information you should have known was incorrect, that debt could be found non-dischargeable,” Bass said.
Also, if you run up your credit card beyond $800 (excluding what’s spent on necessities) within 90 days of filing, the law assumes it’s fraud, according to the National Consumer Law Center. Same goes for cash advances above $1,100 from a single creditor in the 70 days ahead of filing bankruptcy.

If the lender can show that you provided false or misleading information in filing the loan application … that debt could be found non-dischargeable.

Michelle Bass
Partner at Wolfson Bolton Kochis

Taxes owed — unless older than the last three years of tax returns, generally speaking — cannot be discharged in bankruptcy either, she said.
Of course, “any tax debt incurred by way of fraud … would be nondischargeable under all circumstances,” Bass said.

Not everyone qualifies for Chapter 7 bankruptcy

There are several ways to file for bankruptcy. Most individuals typically choose between Chapter 7 and Chapter 13. Each has filing fees of a few hundred dollars, and enlisting an attorney can add $1,200 to about $3,500, depending on where you live and the complexity of your case.
Both Chapters 7 and 13 stop collection activity like calls from creditors or debt collectors, wage garnishments and, potentially, lawsuits from creditors. 
However, there are differences in who qualifies and how debt is treated in each option. Chapter 7 generally is for people who lack enough income to repay their debt and have little in the way of assets (they are subject to a “means test” before being approved). It also is the most common way to file individual bankruptcy.

This approach can quickly erase certain forms of unsecured debt, including from credit cards, medical bills and personal loans. It does not, however, necessarily stop your car from being repossessed or prevent home foreclosure, depending on the specifics of your case.
Meanwhile, Chapter 13 generally gives you three to five years to pay back certain debt and keep the asset (i.e., house or car). It also prevents creditors from garnishing your wages or putting a levy on your bank account. For this filing option, you must have sufficient income, and your debt must be below a certain amount (currently $2.75 million).
For individuals with debt above that threshold, Chapter 11 — which is largely similar to Chapter 13 — might be the best choice. This is the least commonly used option for individuals.

Your retirement accounts are protected in bankruptcy

The good news is that your retirement assets — including 401(k) plans and individual retirement accounts that you own and contributed to — generally are protected in bankruptcy. (Inherited IRAs do not get the same protection.)
An exception to this broad rule applies to IRAs, both traditional and Roth: Up to a set amount per person — currently about $1.51 million — is safe from creditors. Any excess could go to pay off creditors, unless the judge rules otherwise.

Your credit will take a hit, but also will rebound

A big downside of bankruptcy is what it does to your credit score, which may already be suffering if you’ve become 30 or more days late on a loan or other credit obligation. The filing remains on a credit report for seven to 10 years, although the impact decreases over time and your score will tick upward. 
“Whether they file Chapter 7 or 13, their credit is going to take a hit,” Bass said. “But most clients say it starts improving right away after a Chapter 7 discharge, and in Chapter 13, their credit starts to improve six to 12 months after filing.”
Regardless of which bankruptcy approach you take, you should be prepared to provide detailed information on your financial life to the court. That includes tax returns, bank statements, paystubs and the like.
Keep in mind, too, that having an initial consult with a bankruptcy attorney often is free. They also might have suggestions for handling your debt that does not involve bankruptcy.
“No one wants to call us and I know that … but usually after a consult they feel much better because they know their options and can make a game plan,” Bass said.

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The Supreme Court has the final say on Biden’s student loan forgiveness plan but college affordability will remain an issue for years to come.
Initially, legislation aimed at improving college access was followed by cuts in state funding for higher education, which paved the way for significant tuition increases.
As college costs have skyrocketed, outpacing inflation and incomes, families are forced to rely on student loans to help cover the tab.

A Jan. 2, 2023 protest in favor of federal student loan relief outside the U.S. Supreme Court in Washington, D.C.
Larry French | Getty Images Entertainment | Getty Images

A shifting financial burden

These days, tuition accounts for about half of public college revenue, while state and local governments provide the other half. But a few decades ago, the split was much different, with tuition providing just about a quarter of revenue and state and local governments picking up the rest.

Arrows pointing outwards

Over the 30 years between 1991-92 and 2021-22, average tuition prices more than doubled, increasing to $10,740 from $4,160 at public four-year colleges, and to $38,070 from $19,360 at private institutions, after adjusting for inflation, according to the College Board.
Wages haven’t kept up.
“Household income has been stagnant,” higher education expert Mark Kantrowitz told CNBC previously.
Because so few families could shoulder the rising cost of college, they increasingly turned to federal and private aid to help foot the bills.
The shift to “high-tuition, high-aid” caused a “massive total volume of debt,” according to Emily Cook, an assistant professor of economics at Tulane University.

“The federal government should get out of the student loan business,” Diana Furchtgott-Roth, an economics professor at George Washington University and former chief economist at the U.S. Department of Labor, told CNBC.
With nearly no limit on the amount students can borrow to help cover the rising cost of college, “there is an incentive to drive up tuition,” she said.
Now, “schools can charge as much as they want,” Furchtgott-Roth added.
Once families hit their federal student loan limits, they turn to parent student loans and private financing to be able to send their children off to college, an increasingly necessary step for people to have a decent shot at landing in the middle class.

Pursuit of advanced degrees drives up debt

More and more students feel they need to go to graduate school to be competitive in the job market. And more time in school means more costs, and a greater need for borrowing. Around 40% of outstanding federal student loan debt is now taken on post-college for master’s and PhD programs.
The average student debt balance among parents was more than $35,000 in 2018-19, up from around $5,000 in the early 1990s.
Meanwhile, the private student loan market has grown more than 70% over the last decade, according to the Student Borrower Protection Center. Americans now owe more in private student loans than they do for past-due medical debt or payday loans.
Every year millions of new students are pumped into the student loan system while current borrowers struggle to exit it.

Graduates choose longer, costlier payment plans

Many recent college graduates can’t afford the standard 10-year repayment timeline, according to Kantrowitz.
“Generally, people choose the repayment plan with the lowest monthly payment, which is also the plan with the longest term,” he said.
As a result, it takes people 17 years on average to pay off their education debt, data by the U.S. Department of Education shows.
Many borrowers put their loans on hold through forbearances, which cause their debt balances to mushroom with interest, and widespread failures in the government’s forgiveness programs have left those who expected to have their debt written off after a certain period still shouldering it.

The average loan balance at graduation has tripled since the 90s, to $30,000 from $10,000. Around 7% of student loan borrowers are now more than $100,000 in debt.
Without any intervention, over the next two decades, Kantrowitz estimates outstanding student loan debt could hit $3 trillion.
“Given how linear the growth in student debt is, it makes these events easy to predict,” he said.
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The Supreme Court will hear oral arguments in two cases that challenge President Joe Biden’s plan to forgive up to $20,000 in student loan debt owed by tens of millions of Americans.
Borrowers gathered outside the Supreme Court Monday to demonstrate in favor of forgiveness.
One case was filed by the Republican attorneys general of six U.S. states.
The Biden administration says the Covid pandemic public health emergency provides a legal basis to forgive student debt.
Experts say the court’s conservative supermajority is likely to strike down the plan if it finds the plaintiffs have legal standing to sue the federal government in the cases.

Student loan borrowers gathered at the Supreme Court in Washington, D.C., the evening before the court hears two cases on the White House student loan relief plan.
Jemal Countess | Getty Images Entertainment | Getty Images

On the night before the Supreme Court was set to hear oral arguments over the Biden administration’s student loan forgiveness plan, Amanda Smitley sat outside the court on an aluminum blanket holding an umbrella.
She didn’t know when she planned to spend the night staked outside the highest court that it would be pouring rain, but she wasn’t discouraged.

“I’m feeling great,” said Smitley, 20, who already has around $10,000 in student debt as a college sophomore at PennWest California. She’ll have to take out more if she wants to fulfill her hopes of graduating and becoming a high school history teacher.
“I really, really care about student debt, not even just for myself,” Smitley said. “I want to live in a world where my future students and maybe future kids won’t have to worry about getting into thousands in debt just because they want to further their education.”

Student loan borrower Amanda Smitley, 20, joined the student loan borrowers gathered at Supreme Court on Feb. 27, 2023, the night before the court hears two cases on student loan forgiveness.
Annie Nova | CNBC

Court will hear two cases against forgiveness

Despite the cold, borrowers gathered outside the Supreme Court Monday to demonstrate in favor of the Biden administration’s forgiveness plan. More than 35 million student loan borrowers could benefit from the policy, and have up to $20,000 of their debt forgiven. If implemented, an estimated $400 billion in debt would be wiped out.
But the program has been on hold since the fall, when a federal appeals court panel in St. Louis issued a temporary injunction barring it from taking effect. The Supreme Court has kept that injunction in place as it considers challenges to the plan, and the government on its own accord stopped taking applications for the program in November.
The Supreme Court is hearing two separate cases Tuesday on Biden’s debt relief plan.

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The first, originally lodged by six Republican-led states in federal court in Missouri, claims that Biden administration did not have the legal right to cancel student loan debts without congressional authorization.
The second lawsuit, filed by Myra Brown and Alexander Taylor, in U.S. District Court in Texas, argues that they and other members of the public were improperly denied the right under federal procedures to formally comment on the debt relief plan, which might have affected its design before it was put in effect.
The Job Creators Network Foundation, a conservative advocacy group, is backing the plaintiffs in that case.
Experts say the debt relief plan is likely to be ruled illegal by the court’s six-justice supermajority if that bloc find that one or more of the plaintiffs in the two cases has the requisite legal right, known as standing, to file a suit challenging the program.

‘For many people, this is life and death’

Student loan borrower John Runningen was also among those who planned to sleep outside the Supreme Court on Monday night. He attends Minnesota State Community and Technical College and owes $5,000.
That debt has already made his life more difficult.
“It’s stopped me from getting a vehicle, from moving out of my parents’ house and helping my parents with the stress of their bills,” said Runningen, 22.
As a first-generation college student, he hoped to break the cycle of poverty and assist his parents. His stepfather is a farmer and his mother works at a gas station. With a $175 monthly student loan bill, though, he won’t be able to help them.

Student loan borrowers gathered outside the U.S. Supreme Court on Feb. 27, 2023, the night before the court hears two cases on student loan forgiveness.
Annie Nova | CNBC

“To some people it might not seem like a lot of money, but for rural communities or those that are poverty-stricken, it’ll be the difference between me being able to give my family food or be able to afford an electricity bill,” Runningen said.
Within three weeks of the application process being opened, the Biden administration reported that more than 26 million people applied for the relief, with 16 million requests approved.
There’s no precedent in U.S. history for the kind of sweeping debt forgiveness that the White House has promised to deliver, although consumer advocates point out that large corporations and banks have been bailed out by the government after going through their own crises. And they say that canceling a large share of education debt is necessary to relieve the many borrowers struggling from a broken lending system.

Student loan borrowers were having problems repaying their debt before Covid. Only about half of borrowers were in repayment in 2019, according to an estimate by Kantrowitz. A quarter — or more than 10 million people — were in delinquency or default, and the rest had applied for temporary relief measures for struggling borrowers, such as deferments or forbearances.
These grim figures led to comparisons to the 2008 mortgage crisis and built pressure on Biden to deliver relief.
“For many people, this is life and death,” said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors. “What’s at stake is being forced to choose between paying for student loans or being able to buy groceries, make rent and pay medical bills.”

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Egg prices rose 60% in 2022: Consumers paid $4.30 on average in December for a dozen eggs compared to $1.80 a year earlier. But who’s profiting from that price difference? It’s a complicated answer.
“Everyone tries to make money, but … it’s a very low-margin industry,” said Angel Rubio, senior analyst at Urner Barry, a market research firm that specializes in the wholesale food industry.

There were 373 million laying hens around the U.S. as of January, according to the U.S. Department of Agriculture. After hens lay eggs at a farm, they get graded by the USDA and put into cartons, sold to retailers and then purchased by you, the consumer.
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All told, eggs are an about $10 billion dollar industry, with nearly 13% growth annually in profit from 2017 to 2022, according to IBISWorld. But the egg industry is volatile, too, sensitive to market changes and environmental factors. Much of the price increase of eggs over 2022 stemmed from the deadliest outbreak of bird flu in U.S. history, which killed millions of egg-laying hens.
The egg industry also has its fair share of controversy.
“Each bird is given less space than the dimensions of an iPad on which to live her entire life,” said Kate Brindle, a senior public policy specialist in farm animal protection at The Humane Society of the United States. “And so they have to eat, sleep, defecate, all in the same area, and they’re denied virtually everything that’s natural to them.”

There are only a handful of big players in the industry. Cal-Maine Foods, the only publicly traded egg producer, holds 16.8% of market share. Like some of the other larger companies, it operates farms, processing plants, hatcheries, feed mills, warehouses, offices and other properties around the country. Cal-Maine Foods reported a nearly 32% increase in revenue from 2021 to 2022.
“It’s a testament to the fact that they haven’t had any [bird flu] outbreaks, how good they’ve been at biosecurity in their facilities,” said Peter Galbo, a food and beverage analyst for Bank of America. “This is a very experienced, very deep management team that’s been in this industry for a long time.”
The second largest producer is Rose Acre Farms, with about 7% market share, followed by Versova Holdings and Hillandale Farms with just more than 5% each, and Michael Foods with 3.5%, according to IBISWorld.
So who profits from this $10 billion industry? Watch this video to learn who makes money from eggs.

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It’s not too late for families struggling to afford college next year to apply for financial assistance or ask the college financial aid office for more money.
Here’s how to craft your approach.

1. Apply for financial aid

In ordinary years, high school graduates miss out on billions in federal grants because they don’t apply for financial aid. Many families mistakenly assume they won’t qualify and don’t even bother to fill out an application.
Even now, many families haven’t applied for financial aid.

As of February, 38.4% of the high school class of 2023 had completed the Free Application for Federal Student Aid, or FAFSA, form, according to the National College Attainment Network. (The FAFSA season for the 2023-24 academic year opened Oct. 1, but students who haven’t filed can still apply.)
“It’s not too late,” said Mary Jo Terry, a managing partner at Yrefy, a private student loan refinancing company.

Arrows pointing outwards

For families who have already filed the FAFSA but are still concerned about making ends meet, it is also possible to amend their FAFSA form or ask the college financial aid office for more aid, particularly if you’ve experienced a change in your financial situation, such as a job loss or a disability, according to Kalman Chany, a financial aid consultant and author of The Princeton Review’s “Paying for College.”

2. Negotiate for more school aid

For starters, understand the formula colleges use to come up with the expected family contribution. Financial aid is determined by income information that is not necessarily up to date. For instance, aid for 2023-24 academic year is based on 2021 income.
Further, “it’s not so much what you can afford to pay but what you can afford to finance,” Chany said.
If your circumstances are now different, that should be brought to the financial aid office’s attention with documentation.
But first, also make sure you understand the financial aid award letter — particularly the difference between scholarships and loans, whether those funds are renewable for all four years and if they come with contingencies such as maintaining a certain grade point average.

Then, prepare a response with documentation showing any changes in assets, income, benefits or expenses. If the financial aid package from another comparable school was better, that is also worth documenting in an appeal.
“Syrupy” letters aren’t as effective as taking a more quantitative approach, Chany advised.
“This is a business transaction,” he said. “They are trying to meet their enrollment goals and maintain revenue.”
To that end, “play hard to get,” he added. Don’t post wearing the school sweatshirt on social media or make any moves to give the indication that you will enroll anyway.

Colleges are likely receptive to appeals, Chany said, but “it’s not a buyers’ market like it was at the onset of the pandemic.”

3. Leverage private scholarships

Otherwise, consider other sources for merit-based aid, Terry advised. “There is so much money out there that people don’t even know is available.”
In fact, there are more than 1.7 million private scholarships and fellowships available, often funded by foundations, corporations and other independent organizations, with a total value of more than $7.4 billion, according to higher education expert Mark Kantrowitz.
“Every 40 hours you spend applying for scholarships and grants will result in $10,000, on average,” Yrefy’s Terry has calculated.
Check with the college, or ask your high school counselor about opportunities. You can also search websites like Scholarships.com and the College Board.
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If you’re eager to capture higher yields amid rising interest rates, you may consider a Treasury bill ladder, experts say.
The ladder strategy includes several Treasury bills, or T-bills, with staggered maturities, with the chance to reinvest at higher rates as terms expire or to allocate the funds elsewhere.

Damir Khabirov

If you’re eager to capture higher yields amid rising interest rates, you may consider a Treasury bill ladder, depending on your goals, according to financial experts.
Backed by the U.S. government, Treasury bills, or T-bills, are widely considered a relatively safe asset, with terms of four weeks to 52 weeks. You receive the interest when the T-bill matures. 

The ladder strategy includes several T-bills with staggered maturities. When one expires, you can reinvest the funds for a higher yield, which may be appealing as interest rates rise. Or you can allocate the proceeds elsewhere.
More from Personal Finance:Here’s how to buy Treasury bills as some yields reach 5%Some Treasury bills are now paying 5%. Here’s what to knowAs data shows inflation rose in January, here’s what to expect
“Bond ladders are cool again,” said Jeremy Keil, a certified financial planner with Keil Financial Partners in Milwaukee, who is currently looking at T-bill ladders of four months, eight months and 12 months. 
Over the past year, T-bill yields have increased after a series of interest rate hikes from the Federal Reserve — and there may be more on the horizon. As of Feb. 27, six-month and 1-year Treasury bills were both paying over 5%.  

How to earn higher yields in the short term

Keith Singer, a CFP and president of Singer Wealth Advisors in Boca Raton, Florida, said there’s currently an inverted yield curve, meaning some short-term Treasurys have higher yields than longer-term ones. 

“The market is expecting rates to go down,” he explained. Based on what’s known today, the yield curve suggests that inflation will cool and the Fed will eventually start cutting rates, he said.
You can buy T-bills through TreasuryDirect, a website managed by the U.S. Department of the Treasury, which allows you to automatically reinvest into the same term. Or you may purchase T-bills through a brokerage account, which offers more liquidity and flexibility.

It’s better than keeping your money in the bank and it’s better than buying a certificate of deposit.

Keith Singer
President of Singer Wealth Advisors

“It’s better than keeping your money in the bank and it’s better than buying a certificate of deposit,” Singer said, noting there’s also a $250,000 limit per person, bank and ownership category, for Federal Deposit Insurance Corp. insurance.
Keil also agreed that T-bills currently offer “the best rates around” compared to other relatively safe options for cash.
However, the exact selection of T-bills and the amount invested in each one depends on your goals and when you need the money.

For example, if you’re investing money to buy a house in a year’s time, you may include 1-year T-bills in the ladder. “If interest rates tick up a little bit, you’re not going to take a bath,” Singer said. “Because it’s going to mature pretty quickly.”
While a T-bill ladder may not be a good long-term strategy, it makes sense if you need the money sooner for a short-term goal, he added.

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The Supreme Court will hear arguments on Tuesday on President Joe Biden’s student loan forgiveness plan, starting a decision-making process that will impact tens of millions of Americans.
Due to the conservative majority of the Supreme Court, experts say the relief plan faces tough odds.

Supreme Court.
Douglas Rissing | Istock | Getty Images

The Supreme Court on Tuesday will hear oral arguments over President Joe Biden’s student loan forgiveness plan, starting a decision-making process that will affect the balance sheets of tens of millions of Americans.
The nine justices will consider two legal challenges to Biden’s plan to cancel up to $20,000 in student debt for borrowers: one from six GOP-led states (Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina) and another backed by the Job Creators Network Foundation, a conservative advocacy organization.

Long before the president acted, Republicans had criticized loan forgiveness as a handout to well-off college graduates. They also argued that the president didn’t have the power to forgive consumer debt on his own without authorization from Congress.
More from Personal Finance:How to figure out what you can spend on rentWhat is a ‘rolling recession’ and how does it impact you?Almost half of Americans think we’re already in a recession
Biden’s policy has faced at least six lawsuits since it was rolled out in August. Dozens of Republican members of Congress have also filed briefs with the U.S. Supreme Court, arguing that the Biden administration’s student loan forgiveness plan should be ruled unlawful.
There’s no precedent in U.S. history for the kind of sweeping debt forgiveness that the White House has promised to deliver, although consumer advocates point out that large corporations and banks have been bailed out by the government after going through their own crises. And they say that canceling a large share of education debt is necessary to relieve the many borrowers struggling from a broken lending system.
“The court must see these lawsuits as the partisan sham they really are and protect the Biden administration’s historic relief plan,” said Ben Kaufman, director of research and investigations at the Student Borrower Protection Center. “Borrowers deserve better than to be treated like political pawns — lives and livelihoods are at stake.”

Here are three things to know.

1. Millions already approved for loan forgiveness

Although the Biden administration had to take down its loan forgiveness application portal shortly after it rolled out its plan because of the legal challenges, the U.S. Department of Education has already been able to “fully approve” more than 16 million people for the relief and even sent their paperwork to loan servicers.
If the Supreme Court decides the administration can carry out its plan, these borrowers could see their debts lowered or erased quickly, said higher education expert Mark Kantrowitz.

“It should take one to two weeks for the servicers to implement,” Kantrowitz said.
More than 10 million borrowers are likely also eligible for the relief, and those who didn’t already apply should have another opportunity to do so if the policy survives.

2. Justices to consider if president can cancel debt

At an estimated cost of about $400 billion, Biden’s plan to forgive student debt is one of the most expensive executive actions in history.
The justices are likely to examine whether the president has the power to implement such a sweeping policy.
The Biden administration insists that it’s acting within the law, pointing out that the Heroes Act of 2003 grants the U.S. secretary of education the authority to make changes related to student loans during national emergencies. The country has been operating under an emergency declaration due to Covid-19 since March 2020.

However, opponents of the policy say the administration is incorrectly using the law, which was passed after the Sept. 11 terrorist attacks.
“It is not an across-the-board get-out-of-debt provision that an administration can invoke at will,” the six Republican-led states note in their lawsuit against the plan.
Biden officials point out that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults.

The court’s conservatives have been very aggressive in striking down the decisions of Congress and the president.

Gregory Caldeira
political science professor at Ohio State University

Student loan borrowers were having problems repaying their debt before Covid. Only about half of borrowers were in repayment in 2019, according to an estimate by Kantrowitz. A quarter — or more than 10 million people — were in delinquency or default, and the rest had applied for temporary relief measures for struggling borrowers, such as deferments or forbearances.
These grim figures led to comparisons to the 2008 mortgage crisis and built pressure on Biden to deliver relief.

3. Legal experts say forgiveness plan faces tough odds

Gregory Caldeira, a political science professor at Ohio State University, said he wouldn’t be surprised if the highest court rules against Biden.
“The court’s conservatives have been very aggressive in striking down the decisions of Congress and the president,” Caldeira said.
For a number of reasons, Dan Urman, a law professor at Northeastern University, also predicts student loan forgiveness won’t survive the Supreme Court.
He said the conservative justices believe government agencies exert too much authority and “violate the separation of powers.” In addition, he said, the concept of loan forgiveness seems to run counter to their notions of individual responsibility.
Such a politically fueled decision, however, is likely to further damage the public’s perception of the judicial branch, Urman said.
“Striking down forgiveness will add to growing skepticism that the conservative justices vote for conservatives, and the liberal justices vote for liberals,” Urman said.
Just 25% of Americans have confidence in the highest court, a Gallup poll found over the summer.

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