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Consumers eager to see headline acts, secure a summer rental or pursue student loan forgiveness may have fallen prey to bad actors this summer.
Those transactions were among the top schemes on Visa’s radar this summer, according to the company’s chief financial risk officer.
Here’s how to prevent your personal information or money from becoming compromised.

Taylor Swift performs onstage during “Taylor Swift | The Eras Tour” at SoFi Stadium on August 09, 2023 in Inglewood, California.
Kevin Winter/tas23 | Getty Images Entertainment | Getty Images

To quote Taylor Swift, “It’s a cruel summer” — especially for some consumers falling prey to common scams.
Swift fans eager to buy tickets may have found they were duped. Summer vacationers may have found the rental listings they wanted were not legitimate. And borrowers hoping for student loan relief may have fallen prey to scams after the Supreme Court struck down President Joe Biden’s broad federal student loan forgiveness plan.

Those are among the top schemes Visa has seen this summer as it works to monitor fraud, according to Paul Fabara, the company’s chief risk officer.
“A lot of it is related with the consumer trusting too much and not paying attention to what they’re clicking or saying yes to,” Fabara said.
More from Personal Finance:Student loan interest resumes today — what that means for borrowersThe job market shows signs of ‘normalizing’ — what that means for workers63% of workers unable to pay a $500 emergency expense
Visa has invested more than $10 billion in the past five years to thwart scams and employs about 1,000 professionals to monitor financial transaction risks.
“We have the opportunity to see what exactly is happening across the entire payment ecosystem,” while Visa’s algorithms can identify fraud by type, Fabara said.

Here are four of the prevalent schemes that have emerged this summer.

1. Concert and event ticket scams

Fans were especially eager to see big-ticket acts like Beyonce and Taylor Swift as they toured this summer. And some fraudsters were ready to take advantage, offering up fakes that left fans without funds or a ticket.
Some launched their own ticket sale sites, with URLs going up live just hours before a sold-out event starts, claiming creative reasons as to why they have a surplus of tickets. Others may have posed as sellers, and managed to offer tickets on bona-fide ticket platforms.
“That is where they strike big,” Fabara said. “Consumers feel that urgency a few hours before the concert.”
The prevalence of the scams has led officials like California Attorney General Rob Bonta to issue warnings for consumers to be vigilant.

2. Vacation lodging scams

Vacationers who sought rentals or other services in popular destinations may have found themselves prey to fake listings. Such vacation scams meant travelers could find themselves out money as well as a place to stay.
Some scammers have even gone as far as forging company logos to look like a legitimate vacation rental site, according to Visa. On individual listings, the schemes can create profiles that combine attributes of real people, and therefore appear credible in the public domain, Fabara noted.
“But at the end of the day, those listings are fake listings, which puts consumers at risk,” he said.
The prevalence of these scams has also prompted attorneys general to issue warnings this season.

3. Apartment rental scams

College students on the hunt for off-campus housing may find themselves prey to fake listings. More broadly, as rents have soared in some markets, apartment seekers hoping to find a deal may have found themselves susceptible to dupes.
Scammers are hoping apartment hunters will send money for application fees or a security deposit before they realize the listing isn’t legit.

Last week, New York Attorney General Letitia James and the Federal Trade Commission secured $1.6 million from online apartment search platform Roomster and its owners for defrauding millions of U.S. consumers with unverified apartment listings and fake reviews. New York is among six states suing the company alongside the FTC. Roomster did not immediately respond to a request for comment.
“Looking for an apartment can be stressful, and the last thing renters need is to be scammed by fake reviews and apartments that might not even exist,” James said in a statement.

4. Student loan forgiveness scams

With federal student loan repayment set to begin in October, some debtors looking for an easy out may be susceptible to forgiveness scams. Often, scammers are fishing for personal details they can use to steal your identity.
While getting help from a private, unaffiliated debt relief company may not necessarily lead to fraud, “seeking out unverified services is a common path to a student loan forgiveness scam,” the Federal Student Aid Office has warned.
Common warning signs include aggressive advertising language, big promises and requests for log-in or other confidential personal information.

How to protect yourself from fraud

Tashdique Mehtaj Ahmed | Moment | Getty Images

While the summertime schemes have put consumers at risk, there are themes that should be on their radars throughout the year, according to Fabara.
For example, the holiday season tends to coincide with an uptick in e-commerce schemes, while tax season tends to prompt false promises of outsize refunds from organizations that promise to file your taxes on your behalf.
“A lot of it is common sense,” Fabara said of consumer fraud prevention.
Here are some tips to keep in mind:

Keep your personal information to yourself. Do not share confidential information like your address, Social Security or credit card numbers unless you are certain the website or app is legitimate. 

Avoid clicking on unverified links. Some bad actors may use the name of legitimate businesses, but then take you to a website that has nothing to do with that business. Verify before entering any personal information that the site is legitimate. Better yet, avoid clicking on potentially suspicious links on social media and in emails and text messages.

Watch for AI/deep fake imitations. Fraudsters may use AI to create deep fakes, whereby reputable public figures seemingly endorse a company’s products or services on social media. While you may be swayed into thinking it’s a legitimate endorsement, “the reality is that’s not the case,” Fabara said.

Do your due diligence on vendors. Sources like the Better Business Bureau and the Federal Trade Commission can provide background information on businesses, including whether there are consumer complaints against them. When seeking real estate deals, consumers should also perform searches to verify that key details about properties are accurate, according to Fabara. Verify the listing is in fact listed as available on real estate websites and not otherwise occupied. Also do a search for the address and make sure the photos match the property advertised online.

Set up real-time purchase alerts. By monitoring your accounts on a real-time basis, you can more quickly find any potential fraudulent compromises, Fabara said. Using your credit card has more robust purchase protections than a debit card.

Alert your financial institution if you see suspicious activity. While consumers may think of big-time purchases when it comes to fraud, often it starts with much smaller transactions of as little as $1, Fabara noted. By alerting your credit card company or other financial institution about even small unknown transactions, you can potentially save yourself further trouble. More

The logo of Nvidia at its corporate headquarters in Santa Clara, California, May 2022.
Nvidia | via Reuters

The macro backdrop is looking challenging as September begins, but analysts have highlighted several stocks that they feel confident about for the long term.
Here are five attractive stocks, according to Wall Street’s top experts, as rated by TipRanks, a platform that ranks analysts based on their past performance.

Nvidia

Let’s start with shares of chip giant Nvidia (NVDA), which are experiencing a phenomenal rise this year as a frenzy around generative artificial intelligence boosts demand for the company’s graphics processing units or GPUs. The company recently reported its fiscal second-quarter results, which crushed Wall Street’s expectations, as revenue more than doubled compared to the prior-year quarter.
JPMorgan analyst Harlan Sur noted that expectations were high, heading into the fiscal second-quarter print. Still, Nvidia delivered results and guidance that were way above estimates, thanks to the significant demand pull for the company’s data center products.
The analyst expects the company’s earnings power to grow by over 30% annually over the next few years, driven by continued strength in the data center segment, an incremental auto revenue pipeline of nearly $14 billion, and an incremental $1 billion to $2 billion from software, licensing and subscription revenues over the next 3 to 4 years.
Sur raised his price target to $600 from $500 and reaffirmed a buy rating on NVDA stock, saying, “The build out of generative AI and large language/transformer models are continuing to drive expanding demand for NVIDIA’s accelerated compute/networking platforms and software solutions.”
Sur ranks No. 95 among more than 8,500 analysts on TipRanks. His ratings have been successful 65% of the time, with each rating delivering an average return of 19.3%. (See Nvidia Hedge fund Trading Activity on TipRanks).

Marvell Technology

Another semiconductor stock in this week’s list is Marvell Technology (MRVL). The company managed to surpass analysts’ expectations for the fiscal second quarter, even as revenue declined compared to the year-ago period. Management expects sequential revenue growth to accelerate in the fiscal third quarter, fueled by AI and cloud infrastructure.
In reaction to the results, Deutsche Bank analyst Ross Seymore reiterated a buy rating on MRVL stock with a price target of $70. The analyst noted that the company delivered a modest top-line beat and in-line outlook, with solid acceleration in AI-related applications offsetting macro-related weakness.
“Overall, we continue to believe MRVL has a compelling portfolio of infrastructure products that address powerful secular growth trends in AI/Cloud (electo-optics & significant custom compute), 5G and Automotive,” said Seymore.
The analyst thinks that Marvell’s infrastructure products, coupled with an eventual cyclical recovery in the storage, wired and on-premise businesses, would help in significantly accelerating the company’s growth heading into calendar year 2024.
Seymore holds the 9th position among more than 8,500 analysts tracked on TipRanks. His ratings have been profitable 75% of the time, with each rating delivering an average return of 24.2%. (See Marvell Stock Chart on TipRanks)

Palo Alto Networks

Next up is cybersecurity provider Palo Alto Networks (PANW), which reported better-than-anticipated fiscal fourth-quarter earnings. Revenue grew 26% year-over-year to $1.95 billion but slightly lagged estimates.
BMO Capital Markets analyst Keith Bachman, who ranks 584th out of over 8,500 analysts on TipRanks, noted that the company’s fiscal 2024 guidance of 19% to 20% year-over-year billings growth and an 37% to 38% adjusted free cash flow (FCF) margin was better than expectations of mid-teens billings growth and a FCF margin in the mid-30% range.
Bachman thinks that the trend of consolidating solutions with leading security vendors will continue as the threat landscape evolves and as generative AI emphasizes the need for data aggregation. He added that implementing a consolidated portfolio enhances the prospects for real-time threat detection and remediation.
The analyst highlighted that customers are increasingly adopting each of PANW’s three platforms (Strata, Prisma and Cortex), as they look for integrated solutions and unified data models. He increased his price target to $275 from $235 and reiterated a buy rating on Palo Alto.
“We believe that the strength of PANW’s portfolio and the consolidation of spend are key drivers of PANW’s long-term targets and net new NGS ARR [next-generation security annual recurring revenue] growth,” said Bachman.
The analyst has a success rate of 57% and each of his ratings has returned 7%, on average. (See Palo Alto Financial Statements on TipRanks).

Intuit

Financial software company Intuit’s (INTU) fiscal fourth-quarter results topped analysts’ forecast. That said, the company’s earnings outlook for the first quarter of fiscal 2024 missed expectations while revenue guidance was in line with estimates.
Deutsche Bank analyst Brad Zelnick explained that the company’s strong fiscal fourth-quarter results were driven by the outperformance of its small business unit, supported by solid growth in the QuickBooks Online (QBO) ecosystem.
At the innovation and investor day events scheduled to be held in September, the analyst expects management to reveal more details about Intuit’s AI investments over the past several years and advances in generative AI. He expects the company’s AI initiatives to create value for small business owners, consumers, and taxpayers, driving long-term growth and improved profitability.
Zelnick maintained his buy rating on INTU and increased the price target to $575 from $525, saying, “We see its AI-driven expert platform powering accelerated innovation with leverage, thus enabling sustained mid-teens or better EPS growth.”
Zelnick holds the 50th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 71% of the time, delivering an average return of 15.4%. (See Intuit Insider Trading Activity on TipRanks) 

The Chefs’ Warehouse

We end this week’s list with The Chefs’ Warehouse (CHEF), a distributor of specialty foods, supplies and ingredients for chefs and restaurants.
BTIG analyst Peter Saleh pointed out that CHEF stock is trading at or near trough EV/EBITDA and P/E multiples (excluding Covid-era volatility) despite six guidance upgrades over the past 18 months, record sales, gross profit, operating income and EBITDA.
The analyst expects the company’s sales to grow 28.5% to $3.36 billion in 2023, backed by about an 8% rise in organic sales, with acquisitions contributing the remaining growth. He argued that while his estimate is more than twice the 2019 revenue of $1.59 billion, shares are trading about 25% below pre-pandemic levels. Overall, Saleh believes that CHEF shares are massively undervalued and underappreciated by investors.
Retaining a buy rating with a price target of $48, Saleh said, “Given the growth profile, including double-digit sales and EBITDA growth, we believe CHEF represents a unique opportunity for long-term investors, and we maintain the stock as our small/mid-cap Top Pick.”
Saleh ranks No. 402 out of more than 8,500 analysts tracked on TipRanks. Additionally, 60% of his ratings have been profitable with an average return of 11.1%. (See CHEF’s Technical Analysis on TipRanks) More

The U.S. Securities and Exchange Commission on Thursday delayed a decision on the first spot bitcoin exchange-traded funds.
The update comes two days after a federal appeals court sided with Grayscale in a lawsuit against the SEC for denying its application to convert the Grayscale Bitcoin Trust to an ETF.

Umit Turhan Coskun | Nurphoto | Getty Images

Even as the U.S. Securities and Exchange Commission delays a decision on several applications for the first spot bitcoin exchange-traded fund, many in the crypto industry are still feeling optimistic for a future blessing from the agency.
SEC filings dated Aug. 31 indicated the agency would give itself until mid-October to make decisions on several applications. But another extension could be possible, experts say.

The update came two days after a federal appeals court sided with Grayscale in a lawsuit against the SEC for denying its application to convert the Grayscale Bitcoin Trust to an ETF.
“It is clear that bitcoin is something that retail investors want access to,” former SEC chair Jay Clayton said on CNBC’s “Squawk Box” on Friday, noting that “an approval is inevitable.”
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The Grayscale ruling isn’t necessarily a green light for a spot bitcoin ETF, said Bryan Armour, director of passive strategies research at Morningstar. But pending applications from Blackrock, Fidelity and others “have increased the probability overall.”
U.S. investors currently have access to bitcoin futures ETFs, which invest in bitcoin futures contracts, or agreements to buy or sell the asset later for an agreed-upon price. The long-awaited bitcoin spot ETF, however, would invest in the digital currency directly.

Spot bitcoin ETF would be a ‘watershed moment’

“I think the spot bitcoin ETF is a watershed moment for bitcoin,” said Douglas Boneparth, a New York-based certified financial planner and president of Bone Fide Wealth. He is also a member of CNBC’s Financial Advisor Council.
“It’s a very serious statement to see BlackRock submit that application,” he said, and many crypto advocates believe it’s the beeline for a bitcoin spot ETF product.

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Limit ‘high-risk assets’ in your portfolio

A bitcoin spot ETF would provide easier access to the asset, allowing investors to buy and sell the digital currency through a brokerage account. However, “easier accessibility to something doesn’t mean you should dive in headfirst,” Boneparth said.  
If bitcoin spot ETFs are approved, investors should treat them like any other asset, he said. You should always do your own research and your own due diligence before taking risks with your money.

Easier accessibility to something doesn’t mean you should dive in headfirst.

Douglas Boneparth
President of Bone Fide Wealth

When investors are weighing “high-risk assets” such as bitcoin, the financial services industry may suggest limiting a portfolio to 1% to 5% exposure, Boneparth said. He personally limits speculative assets — such as bitcoin, private equity, hedge funds and more — to 5% to 10% of investable assets, he said.

There’s upside potential with a small percentage

A small allocation can still have significant upside potential, said Ivory Johnson, a CFP and founder of Delancey Wealth Management in Washington, D.C. He also suggests limiting bitcoin exposure.
“If bitcoin has the potential to double and you have a 2% allocation, that’s huge,” said Johnson, a member of CNBC’s FA Council. If the price plunges by 50%, you only lose 1% of your portfolio, he said.
Of course, your target investment allocations should always depend on your individual risk tolerance, timeline and your goals, Boneparth added. More

Since March 2020, the interest rate on federal student loans was set to zero.
That ends today.
Now borrowers will see their loans return to their pre-pandemic rates, typically between 3% and 7%.

Close up upset businesswoman in glasses having problem with laptop, broken or discharged device, confused unhappy woman looking at computer screen, reading bad news, unexpected debt or spam
Fizkes | Istock | Getty Images

The interest on federal student loans has started accruing again.
Since March 2020, the interest rate on most government-owned education debt was set to zero, and people faced no penalties for not making payments.

Now borrowers will see their loans return to their pre-Covid pandemic rates, typically between 3% and 7%. The interest rates on federal student loans are fixed once disbursed, but vary depending on when they’re taken out.
Borrowers’ first loan payments are due in October.
“Millions of federal student loan borrowers are starting to adjust to the reality of having to figure out how to bake their student loan payments into their budget once again,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
The typical monthly student loan bill is around $350.
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Nearly all people eligible for the pause on bills have taken advantage of it, with less than 1% of qualifying borrowers continuing to make payments on their education debt, according to an analysis by higher education expert Mark Kantrowitz.
As a result of the policy, the average borrower likely saved around $15,000 in student loan payments during the pause, including around $5,000 in interest charges.
Student loan borrowers can check their interest rate at Studentaid.gov or with their servicer.
Some people will continue to benefit from a break on interest, including those with unsubsidized undergraduate loans who are in an in-school deferment or grace period. Borrowers facing unemployment or other economic hardship can also apply for deferments that may keep their interest on hold. More

Life Changes

With record-high home prices and soaring mortgage interest rates, homeownership has become increasingly unaffordable.
To make matters worse, everyday home expenses cost the average homeowner $14,155 a year, not counting the typical mortgage payment, according to a June report from Zillow and Thumbtack.

Prospective buyers visit an open house for sale in Alexandria, Virginia.
Jonathan Ernst | Reuters

With record-high home prices and soaring mortgage interest rates, homeownership has become increasingly unaffordable — and hidden costs can surprise first-time buyers, experts say.
Indeed, everyday home expenses, including utility bills, property taxes, insurance and home maintenance, cost the average homeowner $14,155 a year, not counting the typical mortgage payment, according to a June report from Zillow and Thumbtack.

Many homebuyers just focus on the principal and interest of their mortgage payment, said certified financial planner Vince Darling at the Stonebridge Group in Forest Lake, Minnesota. “This can lead people to penny-pinch once they move into a new home.”

More from Life Changes:

Here’s a look at other stories offering a financial angle on important lifetime milestones.

Here are three of the most common surprise homeownership expenses and how to prepare for each one, according to experts.

1. Property taxes

As a first-time homebuyer, it’s easy to overlook property taxes since you’ve never paid those levies directly. Rates often vary widely by city or county, making it harder to plan for the bill.
Based on your home’s assessed value, it’s important to know which jurisdictions levy the taxes and how often reassessments happen, said Richard Auxier, senior policy associate at the Urban-Brookings Tax Policy Center. “A good person to call up would be the local representative,” he suggested.

2. Homeowners insurance

Another major expense can be homeowners insurance, with an average yearly premium of $1,428 for $250,000 in dwelling coverage, according to Bankrate.

However, it can be significantly higher in disaster-prone areas, said CFP Kevin Brady, vice president at Wealthspire Advisors in New York. These policies may not cover key weather events, so check your coverage carefully, he said.
Typically, you’ll need separate policies for floods and earthquakes. You may face a separate deductible and provisions for hurricanes and other windstorms.
With premiums on the rise, you may start shopping for a policy and gathering quotes before putting in a home purchase offer.

3. Home maintenance

The cost of home repairs and maintenance can also be a hidden expense for first-time homebuyers.
Annual maintenance costs soared to an all-time high during the second quarter of 2023, reaching $6,493, compared with —$5,984 one year prior, according to Thumbtack.
While a good home inspector can prepare prospective buyers by sharing the condition of a roof or major systems that typically need replacing at set intervals, many experts recommend extra savings for inevitable expenses.

As a first-time homebuyer, you need to make sure you have a sufficient cushion for surprises — I’d argue 5% of the home’s purchase price at least.

Nicole Sullivan
Co-founder of Prism Planning Partners

“As a first-time homebuyer, you need to make sure you have a sufficient cushion for surprises — I’d argue 5% of the home’s purchase price at least,” said Nicole Sullivan, a Libertyville, Illinois-based CFP and co-founder of Prism Planning Partners.
“Be aware that anything that comes up on the home inspection will need to be addressed and could happen sooner rather than later,” she added. More

Job openings and layoffs dropped slightly for another consecutive month in July, according to government data released Tuesday. 
“It’s not because things are necessarily contracting, it’s just normalizing somewhat,” said Elise Gould, a senior economist at The Economic Policy Institute, of the job market.

Source: Envato Elements

Job openings and layoffs dropped slightly for another consecutive month in July, according to government data released Tuesday. That slowdown is a sign the labor market is getting back to pre-pandemic patterns, economists say.
The number of job openings edged down to 8.8 million in July, dropping from 9.58 million in June, reported the U.S. Bureau of Labor Statistics in its monthly Job Openings and Labor Turnover Survey. Quits also declined 3.5 million, while layoffs and discharges slightly fell to 1.6 million.

While the drop in job openings was significant, the reduction is due to little turnover, said Elise Gould, a senior economist at The Economic Policy Institute. The elevated amount of job openings observed in the past few years was not necessarily signaling an overheated job market, but rather a higher rate of “churn” as people quit and found new jobs at a faster rate, she said.
However, as that churn declines, so will the number of job openings.
“It’s not because things are necessarily contracting, it’s just normalizing somewhat,” she said of the labor market.
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Where workers are still quitting at high rates

The number of quits increased 18,000 for state and local government education, JOLTS data shows.

However, it’s typical to see more quits around this time. July 1 is when the fiscal year typically starts for state and local governments, so contracts change on this date, said José Fernández, an economist and associate professor at the University of Louisville.
While education is also highly cyclical, data has yet to show if this jump in quits was a seasonal effect or a long-term trend, Gould said.

Meanwhile, the number of quits declined in accommodation and food services, down 166,000, and arts, entertainment and recreation, down 17,000.
Positions in these lower-wage sectors tend to have the highest turnover because workers can lose their jobs more easily, Gould said. Quit rates coming down in these sectors show that workers may not see other opportunities to pursue.
“Wages haven’t been rising at the same rate in those lower-wage professions as they had been earlier on in the pandemic,” Gould said.
Workers are staying put, she added.

What to expect in Friday’s jobs report

The labor market has shown consecutive declines in the past few months. Here are a few indicators economists are monitoring ahead of Friday’s jobs report.
The Black unemployment rate serves as an indicator for signs of trouble, since recessionary times often hurt historically disadvantaged groups first, Gould said. 

It will also be important to see job growth for prime age workers continue to rise and nominal wage growth to continue its deceleration. The Federal Reserve pays attention to wage growth to make policy decisions on interest rates.
“Somehow we’ve had a soft landing so far, the labor market has been incredibly resilient to the Federal Reserve’s actions against raising interest rates so quickly and so high — I hope that we continue to see that,” Gould said. 
“But I also hope that we let the labor market feel the full effects of the interest rate hikes that we’ve already had before they raise them again,” she added. More

Workers are reporting financial stress amid higher prices due to inflation and more expensive debt due to rising rates.
New provisions that were signed into law to help employers offer emergency savings may take time to implement, experts say.

A shopper makes their way through a grocery store on July 12, 2023 in Miami, Florida.
Joe Raedle | Getty Images News | Getty Images

As high inflation persists, many workers may be struggling to come up with the cash to cover an unexpected emergency expense.
To that point, 63% of employees are unable to cover a $500 emergency expense, according to a new survey from SecureSave, a provider of a financial technology platform to help employers provide emergency savings benefits.

In another sign of trouble, hardship withdrawals, whereby emergency money is taken from a retirement account, are on the rise, according to recent reports.
“All people are really looking for in life is to be secure, to not have to worry about if something goes wrong, what are they going to do?” said personal finance expert Suze Orman, a co-founder of SecureSave.
“The only way you can ever be secure is when you have savings,” Orman said.
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New changes included in Secure 2.0 — a law signed into law in December that focuses on improving retirement savings — aim to make it easier for workers to build and access emergency cash.

But experts say it may take some time before workers have access to those features.

‘Scratching and clawing’ to find emergency money

Respondents told SecureSave they would either turn to a friend or family member for money, with 19%, or cover the expense with a credit card, with 18%. Just 4% would ask their employer for help, according to the survey of 1,600 adults taken between June and July.
Even high earners are struggling, with 64% of employees who are earning more than $100,000 indicating that financial stress has affected their productivity at work. Meanwhile, 35% said they are living paycheck to paycheck, and 64% said their financial stress has affected their work productivity.
“People are out of pandemic money” and have racked up credit card balances and are still paying higher prices due to inflation, said Devin Miller, co-founder and CEO of SecureSave.
“They’re scratching and clawing to find money they can anywhere,” Miller said.

Secure 2.0 emergency savings provisions

The Secure 2.0 legislation that was signed into law in December included two changes aimed at helping to make it easier for workers to access emergency cash.
The first change made it so employees may save up to $2,500 in after-tax money in a separate account alongside their retirement accounts. Workers would potentially be automatically enrolled in the programs, which would defer the money automatically through payroll deductions.
The second change would allow workers to withdraw up to $1,000 per year penalty free from their retirement plans per calendar year to cover emergency expenses. Those funds would need to be repaid within a certain time frame before an employee could make another similar withdrawal.

While those new optional features were slated to be included in retirement plans as soon as 2024, there may be some delays.
“It looks like the $2,500 in the in plan is not going to be immediately adopted until there’s a much more certain regulatory world,” said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute.
It may take another two to three years before the $2,500 emergency savings provision makes a difference, Copeland estimated.
Meanwhile, the $1,000 provision may be more easily adopted next year, particularly for plans that are already providing hardship withdrawals, he said.
The Secure 2.0 legislation includes a lot of mandatory changes for 401(k) plan record keepers that need to be built and deployed, Miller noted. The IRS recently announced a two-year delay to a Secure 2.0 change that would have required retirement catch-up contributions made by high earners to be done with after tax money.
Because the $2,500 emergency savings feature is optional, it may take more time to develop, Miller said.

New awareness of need for emergency savings

However, experts say the legislative changes are still a big step forward for emergency savings.
“This whole conversation has really brought to the fore the importance of emergency savings and emergency savings accounts,” said Emerson Sprick, senior economic analyst at the Bipartisan Policy Center.
Now, the financial industry, consumer advocates and others are starting to think about what comprehensive emergency savings coverage could look like, he said.
“We’ve made this permanent connection between retirement security and short-term emergency savings,” Miller said.

“There is this important dynamic between improving people’s short-term liquidity and how that improves their retirement readiness,” he said.
Employers who are interested in offering emergency savings benefits are largely focusing on plans outside of the Secure 2.0 provisions, Copeland noted.
SecureSave, which provides those plans, is anticipating rapid growth in the next 15 years, according to Miller.
Some employers like Starbucks have added emergency savings plans for workers. Meanwhile, BlackRock has a philanthropic emergency savings initiative that is working with companies like Levi’s to make plans accessible to employees.
For workers, these benefits offer a new opportunity to change their savings behavior, according to Orman.
“The employees understand very well why they want it, why they need it,” Orman said. “Who really needs to understand it is the employer.” More

After a three-year pause, millions of Americans with federal student loans will have their first payment due in roughly a month.
Here’s how the lending system has changed during the pandemic.

Jlco – Julia Amaral | Istock | Getty Images

After a three-year pause, millions of Americans with federal student loans will receive their first bill in roughly a month.
When borrowers get their bills in October, they’ll be interacting with a lending system that has undergone several changes since before the pandemic.

Here are four of the adjustments you can expect.

1. A new servicer, for some

Millions of federal student loan borrowers will have a different servicer when payments resume in October.
That’s because several of the lenders that managed the debt for the government — including Navient, the Pennsylvania Higher Education Assistance Agency (also known as FedLoan) and Granite State — stopped doing so during the pandemic-era pause on bills.
Impacted borrowers should get emails about the change, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. These notices are supposed to explain any steps you need to take, Buchanan said.
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Higher education expert Mark Kantrowitz has been tracking the transfers.
Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said.
Meanwhile, those who were serviced by Granite State will now be with EdFinancial Services. Accounts with Great Lakes Higher Education should be managed by Nelnet going forward, Kantrowitz said.
And Navient’s borrowers will be moved to Maximus Federal Services/Aidvantage.
You can check to see if you have a new servicer at StudentAid.gov, Kantrowitz said.

2. Another repayment option

Federal student loan borrowers can now sign up for the Biden administration’s new loan repayment plan, and they could be enrolled in it by the time the bills resume.
The administration estimates that up to 20 million people could benefit from the additional Saving on a Valuable Education, or SAVE, plan, which will cut many borrowers’ bills in half.
Some of the benefits of the plan won’t fully go into effect until next summer, due to the timeline of regulatory changes. But eventually, instead of paying 10% of their discretionary income a month toward their undergraduate student debt under the previous Revised Pay As You Earn Repayment Plan, or REPAYE, borrowers will pay just 5% of their discretionary income under SAVE.

Even before the drop to 5%, many people will see lower bills. That’s because the SAVE plan also increases the income exempted from the payment calculation to 225% of the poverty line, from 150%.
As a result, single borrowers earning less than $32,800 or a family of four making under $67,500 will not owe loan payments anymore if they enroll in the option. If your student loan servicer can’t process your application for the SAVE plan by the time payments resume, it should place you in a temporary forbearance.
“The SAVE plan is very generous to borrowers, almost like a grant after the fact,” Kantrowitz said.

3. A smoother road to loan forgiveness

The Biden administration has recently taken a number of steps to improve the various loan forgiveness programs offered by the federal government, including income-driven repayment plans and Public Service Loan Forgiveness.
On the income-driven repayment plans, the Education Department will make sure borrowers’ previous and ongoing payments are properly calculated so that they get the debt forgiven they’re promised after a certain amount of years (usually 20 or 25). Borrowers should also get credit for certain previously ineligible periods, including any months during which they made late payments.
Similar improvements have been made to Public Service Loan Forgiveness, and a recently released tool makes it easier to apply for the debt cancellation after 10 years of payments and employment in an eligible public service job.
In the meantime, President Joe Biden has said he’s pursuing another path to deliver broad student loan forgiveness after the Supreme Court blocked his first attempt at doing so in June.

4. Protection from late penalties

For an entire year after student loan payments restart in October, borrowers will be shielded from the worst consequences of missed payments.
For example, loans will not go into default and delinquencies will not be reported to credit reporting agencies, Kantrowitz said. Late fees won’t be charged, either.
But as is the case with a forbearance, interest will continue accruing on your debt while you don’t make payments. As a result, Kantrowitz recommends borrowers start repaying their bills, if they can.
“Doing otherwise will eventually hurt them,” he said. More