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The Federal Reserve is widely expected to keep its benchmark short-term borrowing rate unchanged once again at its meeting this week.
Many consumer borrowing rates are pegged to the Fed’s benchmark, but they don’t necessarily move in lockstep.
From mortgage rates to auto loans and credit cards, here’s a look at how consumer rates have continued to fluctuate over the first half of the year.

The trickle down from the Fed’s benchmark interest rate appears most obvious in credit cards, although by the numbers it’s a very slight change.
The average rate for credit card balances had been steadily increasing since the Fed began raising rates in 2022 until it finally crested just below 21% last fall, according to Bankrate. Since then, rates have nudged downward and have been hovering around 20.1% for the first half of 2025.

Auto loans have also seen very little movement in the first half of 2025, and 30-year fixed rate mortgages, whose rates are more closely tied to the yield on 10-year Treasurys, have hovered between 6.6% and 7.1% after hitting a low near 6% last fall, according to Freddie Mac.

‘No guarantee’ of lower borrowing costs

President Donald Trump has argued that maintaining a federal funds rate that is too high makes it harder for businesses and consumers to borrow, essentially pumping the brakes on economic growth and the housing market.
Still, “there is no guarantee” that a rate cut would translate into lower borrowing costs for most Americans, according to Brett House, an economics professor at Columbia Business School.
Some variable-rate loans, like credit cards, have a direct connection to the Fed’s benchmark, while others, like mortgage rates, are more closely pegged to Treasury yields and the U.S. economy, he said. “It is entirely likely that cuts to the fed funds rate in the face of increasing inflation would push mortgage rates up, not down.”
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A little-known Canadian vape company called CEA Industries saw shares surge nearly 550% after it announced a plan to enter the crypto treasury game.
CEA is raising funds to purchase Binance Coin for its corporate treasury.
The company is the latest player to borrow MicroStrategy’s playbook of accumulating crypto as a treasury reserve asset.

The logos of Bitcoin, Ethereum, and Tether outside a cryptocurrency exchange in Istanbul, Turkey, on Wednesday, Nov. 6, 2024. 
David Lombeida | Bloomberg | Getty Images

The crypto market’s bullishness may be tipping into speculative frenzy, if the latest MicroStrategy-style copycat is any indication.
On Monday, a little-known Canadian vape company saw its stock surge on plans to enter the crypto treasury game – but this time with Binance Coin (BNB), the fourth largest cryptocurrency by market cap, excluding the dollar-pegged stablecoin Tether (USDT), according to CoinGecko.

Shares of CEA Industries, which trades on the Nasdaq under the ticker VAPE, rocketed more than 800% at one point after the company announced its plans. CEA, along with investment firm 10X Capital and YZi Labs, said it would offer a $500 million private placement to raise proceeds to buy Binance Coin for its corporate treasury. Shares ended the session up nearly 550%, giving the company a market cap of about $48 million.
Given the more crypto-friendly regulatory environment this year, more public companies have adopted the MicroStrategy playbook of using debt financing and equity sales to buy bitcoin to hold on their balance sheet to try to increase shareholder returns, pushing bitcoin to new records.
Now, with the S&P 500 trading at new records, the resurgence of meme mania and a pro-crypto White House supporting the crypto industry, investors are looking further out on the risk spectrum of crypto hoping for bigger gains.
In recent months, investors have rotated out of bitcoin and into ether, which led to a burst of companies seeking a similar treasury strategy around ether. SharpLink Gaming, whose board is chaired by Ethereum co-founder Joe Lubin, was one of the first to make the move. Other companies like DeFi Development Corp, renamed from Janover, are making similar moves around Solana.

Don’t miss these cryptocurrency insights from CNBC Pro: More

As airport security checkpoints go through processing changes, experts say that memberships that offer modified security screenings may still be worth the cost. 
Almost all, 99%, of TSA PreCheck passengers wait less than 10 minutes, while standard screening lanes typically take 30 minutes or less, according to the agency.
“There are still a lot of compelling benefits for PreCheck,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel industry market research and advisory firm.

Passengers walk through the entrance of a TSA PreCheck in Terminal One at O’Hare International Airport Wednesday, Feb. 1, 2017, in Chicago. (Armando L. Sanchez/Chicago Tribune/Tribune News Service via Getty Images)
Armando L. Sanchez | Chicago Tribune | Getty Images

As airport security checkpoints undergo changes that may help travelers get through faster and with less hassle, experts say paid services offering modified security screenings — like TSA PreCheck, Global Entry and Clear — may still be worth the cost. 
Earlier this month, Department of Homeland Security Secretary Kristi Noem announced that in certain airports, families will have their own dedicated screening lanes as part of a new initiative called “Families on the Fly.” That follows a change ending the Transportation Security Agency’s “shoes off” travel policy.

Noem has also floated the idea of allowing more liquids in carry-ons, which could also affect the speed of airport screenings.
The ability to keep shoes on through security was once a perk limited to TSA PreCheck enrollees. Qualifying travelers can go through the program’s screening without taking off items including shoes, belts and light jackets, or removing items from bags like travel-size liquids or laptops.
Even with some friendlier screening policies in play, experts say paid memberships still have value.
“There are still a lot of compelling benefits for PreCheck,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel industry market research and advisory firm.
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About 39% of surveyed travelers with TSA PreCheck said the biggest perk was having a less stressful experience, according to a survey by UpgradedPoints, a travel site. In March, the site surveyed 1,515 travelers, including 659 who had a TSA PreCheck membership.
It’s one of the five trusted traveler programs available through Homeland Security that provide modified screening for pre-approved members.
There are also private companies like Clear that offer their own paid memberships to get through the airport screening line faster.
Almost all, 99%, of TSA PreCheck passengers wait less than 10 minutes, while standard screening lanes typically take 30 minutes or less, according to the agency.

Enrollment, renewal costs may vary

Membership for TSA PreCheck is valid for five years, but enrollment and renewal fees depend on the servicer you choose to work with, and whether the process is done in-person or online.
“Each enrollment provider is allowed to set its own prices for enrollment and renewal fees with TSA approval,” according to a TSA spokesperson. 
For instance, Telos, one of the three TSA-approved service providers, charges an enrollment cost of $85 and a renewal fee of $70 for both online and in-person. 

Another TSA-approved service provider is Clear, which charges $77.95 to enroll in PreCheck. For renewals, the company charges $68.95 if done online and $77.95 if done in-person.
Meanwhile, a Clear Plus membership costs $209.
Several other trusted traveler programs include TSA PreCheck as part of their packages, such as Global Entry, which offers an expedited screening through U.S. Customs and Border Protection upon arrival from overseas. The membership costs $120 and lasts for five years.
“Travelers can select the enrollment provider that best suits their needs,” the TSA spokesperson told CNBC.
Here’s how to decide if a pre-screening membership is worth it for you, according to experts. 

1. Assess how often you travel

Before you sign up or begin the application, factor in how often you travel every year, experts say. 
If you only travel once or twice a year, it may not be worth going through the effort and the cost, said Sally French, a travel expert at NerdWallet. 
To apply for TSA PreCheck, for example, you need to complete an online application. Then you need to visit an enrollment center — some might accept walk-ins, while others require appointments — where you bring necessary documents, have your photo taken and fingerprints scanned.
But if you travel more frequently, then TSA PreCheck “can be worth it,” said Harteveldt. 
Some credit cards and loyalty programs will cover fees for enrollment in TSA PreCheck or other pre-screening memberships. That can make enrolling more worthwhile, even for infrequent travelers.

2. Pick the right program for your needs

If you travel internationally, Global Entry is another trusted traveler program to consider. Qualifying individuals can access expedited customs screening upon returning to the U.S. from other countries, and the membership also includes access to TSA PreCheck lanes.
However, think about how often you travel abroad, whether for business or leisure, and if you have an upcoming overseas trip.
Not only is the enrollment fee more expensive but there may be limited enrollment centers in your state, making the application process more onerous. You may need to travel long distances to your nearest center, and scheduling an appointment may be difficult.
“A lot of people have cited it’s difficult to even get an interview,” said French.

Meanwhile, the value of a Clear Plus membership may depend in part on where you travel, experts say: It’s in more than 60 airports, including some international locations.
Clear also “has value outside of airports” as its membership is available for lines in certain stadiums and arenas, said French. More

A sign is posted on the exterior of a Verizon store on September 30, 2024 in Daly City, California. 
Justin Sullivan | Getty Images News | Getty Images

As the stock market focuses on major earnings and negotiations on the tariff front, investors seeking a regular income stream continue to look for attractive dividend stocks amid ongoing volatility.
To this end, the analysis of top Wall Street analysts can provide useful insights that can help investors pick companies with solid fundamentals and the ability to pay dividends consistently.  

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.

EOG Resources

Oil and gas exploration and production company EOG Resources (EOG) is first on this week’s list. In May, the company announced a deal to acquire Encino Acquisition Partners (EAP) for $5.6 billion. EOG stated that the deal’s accretion to its free cash flow supports a 5% increase in its quarterly dividend, to $1.02 per share, payable on Oct. 31. At an annualized dividend of $4.08 per share, EOG stock offers a dividend yield of 3.4%.
Ahead of EOG Resources’ second-quarter earnings call on Aug. 8, Siebert Williams Shank analyst Gabriele Sorbara reiterated a buy rating on EOG stock with a price forecast of $155. In comparison, TipRanks’ AI analyst has a price target of $138 on EOG stock with an “outperform” rating. Meanwhile, Sorbara stated that he expects EOG to report strong quarterly results on both the operational and financial fronts. 
The five-star analyst believes that investors will pay more attention to EOG’s significant expansion in the Utica shale via the EAP acquisition, as the deal is expected to provide catalysts from the integration, synergies, and execution in the quarters ahead. 
“All in all, we are positive EOG into the print, especially since EOG should be more defensive in the current price environment,” said Sorbara.

The analyst is also bullish on EOG due to its peer-leading shareholder returns, supported by its solid free cash flow generation, best-in-class balance sheet, and the Utica shale expansion. Sorbara expects EOG to maintain its commitment to return at least 70% of free cash flow to shareholders annually via dividends and opportunistic buybacks. He expects $450 million of buybacks for Q2 2025. Overall, Sorbara estimates $976.6 million of capital returns, representing 107.7% of free cash flow and a 6.0% capital returns yield.
Sorbara ranks No. 178 among more than 9,800 analysts tracked by TipRanks. His ratings have been profitable 55% of the time, delivering an average return of 22.5%. See EOG Resources Ownership Structure on TipRanks.

Williams Companies

Energy infrastructure provider Williams Companies (WMB) is the next dividend-paying stock in focus. WMB offers a quarterly dividend of 50 cents per share (annualized dividend of $2.00 per share), reflecting a yield of 3.5%.
Heading into WMB’s Q2 results scheduled for early August, RBC Capital analyst Elvira Scotto reaffirmed a buy rating on the stock with a price target of $63. Interestingly, TipRanks’ AI analyst has a “neutral” rating on WMB stock with a price target of $63. Meanwhile, Scotto lowered the Q2 projections to reflect insights from the conversations with the WMB team, seasonal adjustments to marketing estimates, and RBC’s updated commodity price deck.
Scotto expects sequential decline in commodity prices to be a modest headwind in the second quarter, particularly for WMB’s upstream operations. The analyst expects Q2 results to be impacted by lower quarter-over-quarter marketing contributions due to normal seasonality and higher storage fees, partially offset by contributions from the recent investment in Cogentrix.
On the positive side, Scotto is confident about WMB’s long-term growth, backed by its robust backlog of projects with low build multiples (less than five-times capex to earnings before interest, taxes, depreciation and amortization), with planned in-services dates through 2030. The analyst also expects WMB to benefit from additional behind-the-meter (BTM) projects and the potential revival of the Northeast Supply Enhancement (NESE) pipeline and the Constitution pipeline project.
“Despite its recent selloff, we still view WMB as one of the best positioned companies within our coverage universe to benefit from growing natural gas demand,” said Scotto.
Scotto ranks No. 72 among more than 9,800 analysts tracked by TipRanks. Her ratings have been successful 67% of the time, delivering an average return of 18.5%. See Williams Insider Trading Activity on TipRanks.

Verizon Communications

Finally, let’s look at telecom giant Verizon Communications (VZ). The company delivered solid results for the second quarter of 2025. Verizon raised the lower end of its annual profit guidance, reflecting robust demand for its premium plans and its reaction to the new tax law under the Trump administration.
The company announced a quarterly dividend of $0.6775 per share, payable on Aug. 1. With an annualized dividend of $2.71, VZ stock offers a dividend yield of 6.3%.
In reaction to the Q2 print, Citi analyst Michael Rollins reiterated a buy rating on Verizon stock with a price forecast of $48. Also, TipRanks’ AI analyst has an “outperform” rating on VZ stock with a price target of $49. Rollins noted Verizon’s Q2 performance and the upgrade to the full-year EBITDA and EPS guidance based on the relative strength in the first half of the year.
He added that key performance indicators (KPIs) were mixed and continue to reflect a more promotional competitive backdrop. Notably, Rollins trimmed his postpaid phone subscriber outlook to reflect a year-over-year rise in churn, which is expected to persist in the second half of the year.
“Verizon indicated a more disciplined approach to subscriber acquisition, which is encouraging for competitive dynamics and its financials, albeit likely dilutive to its near-term volume KPIs,” said Rollins.
Despite additional promotional costs and lighter volume, Rollins believes that Verizon is well-positioned to deliver its full-year guidance. Overall, Rollins remains bullish on VZ stock, given its relative value and opportunities for the company to sustain annual financial growth.
Rollins ranks No. 276 among more than 9,800 analysts tracked by TipRanks. His ratings have been successful 68% of the time, delivering an average return of 12.6%. See Verizon Stock Charts on TipRanks. More

About 67% of surveyed couples used some form of financing to pay for their wedding, whether it was credit cards or personal loans, according to a report by LendingTree.
The average cost of a wedding in the U.S. is expected to be about $36,000 for 2025, according to wedding site Zola. 
If you’re thinking about using credit cards as a main form of payment for your wedding, here’s what to know, according to experts. 

Westend61 | Westend61 | Getty Images

Many engaged couples in the U.S. are relying on forms of credit to pay for their wedding. Experts say that approach can be smart, if done carefully.
While 46% of surveyed newlyweds — couples who tied the knot within the past two years — used mostly savings to pay for costs, 24% paid with credit cards, according to a report by LendingTree. The site polled 1,050 newlyweds in early March.

A separate report by Zola, based on a survey of 6,000 couples getting married in 2025, found that 31% of engaged couples polled plan to use credit cards to pay for their wedding, including using points or applying for new cards.
“If you’re strategic, a credit card can be an amazing tool,” said Matt Schulz, chief credit analyst at LendingTree.
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Otherwise, a credit card can be a slippery slope, leading couples to walk down the aisle with long-lasting and expensive debt, experts say.
About 67% of surveyed newlyweds took on debt for their wedding, according to LendingTree.

For new cards, the average annual percentage rate, or the borrowing cost, is 24.35%, the highest since December, LendingTree found.
“Ultimately, a beautiful wedding should never come at the cost of financial stress to a new marriage,” said Gloria Garcia Cisneros, a certified financial planner at LourdMurray, an investment and wealth management firm.

‘Make those savings work even harder for you’

Sharon Dominick | Photodisc | Getty Images

Weddings are becoming more expensive every year. The average cost for a wedding in 2025 is expected to be $36,000, according to Zola. That’s up from $33,000 in 2024, and $29,000 in 2023.
If you have savings set aside to cover your wedding costs, charging the expense to a credit card and then immediately using those savings to pay off the bill can help you earn rewards such as points or miles, said Schulz.
Some credit cards offer big sign-up bonuses when you spend a set amount on the card within a short period of opening it. That might be more than you spend on normal expenses, but within reach if you have big expenses — such as wedding-related purchases and deposits — coming up.
By immediately paying that charge off with your savings, you can take advantage of the rewards for things such as your honeymoon, Schulz said.
“It’s a way to make those savings work even harder for you,” he said.
Using a credit card can have other advantages, too. Credit cards offer layers of federal protection that can help cardholders dispute charges and get a refund if things go awry with an item or service purchased with a card, experts say.
Some cards also offer purchase protections, a form of insurance against theft or damages, per NerdWallet. Make sure to read the fine print of what your credit card offers and how long the terms last.

Don’t take on debt for a ‘short-term event’

However, the key with credit cards “is to pay in full,” said Ted Rossman, a senior industry analyst at Bankrate.
“I definitely would not recommend putting wedding expenses on a card if you’re going to be dragging that out over time,” he said.

Not paying the balance off will leave you with high-interest debt as you start your new marriage.
Nearly a quarter, or 24%, of newlyweds married within two years of the survey are still paying the debt off, according to LendingTree. Of those that still owe money, 47% said they will finish paying the debt in six months to a year.
“You don’t want to sacrifice your long-term well-being for a short-term event,” Rossman said.
A 0% APR credit card can be a tool for wedding payments, as you’ll be paying little to no interest on outstanding balances for a period of time. However, make sure to finish paying off the card before the promotion expires, experts say. Otherwise, whatever balance is left will then get interest tacked on.

Factor in credit card fees, cash discounts

As you begin to plan the wedding and reach out to vendors, ask if they accept credit cards as a form of payment, said Jason Rhee, a wedding planner in Los Angeles.
Some vendors might take only cash or check payments, while others might charge additional processing fees for credit cards, Rhee said. Such additional charges can range from 1.5% to 3.5%, according to Bankrate.
Assess whether paying the extra cost is both affordable and worth it to you, or if it’s best to use a different form of payment with the vendor, said Lauren Kay, executive editor of The Knot.
What’s more, some vendors may offer discounts for payments in cash.

Wedding insurance trumps credit protections

While credit cards can offer certain protections to incurred payments or purchases, they might not offer broader protections or policies to cover larger expenditures, such as the reception or the venue, Kay said.
“In most instances, your credit card wouldn’t offer any real benefit if something were to go wrong with a purchase of that magnitude,” said Kay.
For such expenses, wedding insurance policies can be a good option to consider. They help protect you from unexpected risks such as extreme weather, theft or a vendor who didn’t show up, said Kay.
Wedding insurance policy pricing can range from less than $100 to more than $1,000, according to NerdWallet, depending on the size of your policy and the kinds of coverage.
“It’s important to think about what you’re hoping to protect,” Kay said. More

High earners often feel stuck financially due to rising costs, debt and lifestyle inflation.
So-called “HENRYs,” or “high earners, not rich yet,” may still live paycheck to paycheck, or carry credit card debt.
Experts say budgeting, tracking your net worth and setting financial goals are key to feeling secure.

About 14% of all U.S. households make $200,000 or more per year, according to 2023 Census data.
But a significant salary hasn’t translated to big account balances for some of these consumers — which experts have dubbed “HENRYs,” or “high earners, not rich yet.”

Rising costs, debt and lifestyle creep can leave them feeling stuck, experts say. Nearly two-thirds, or 62%, of people with salaries over $300,000 a year struggle with credit card debt, a new survey from BHG Financial found. Other reports have found many six-figure earners still live paycheck to paycheck.
“Earning doesn’t actually make you feel rich; spending it does,” said Sabrina Romanoff, a clinical psychologist. “If most people spent 99% of their paycheck, they’d feel quite rich. And it’s the paradox here. When we’re in accumulation mode, it’s very difficult to feel rich.”
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Americans say they would need to make $520,000 a year, on average, to feel rich, according to a 2024 Bankrate survey.
The more money people earn, the more they say they need to feel comfortable. Americans making under $50,000 said they needed an average $157,000 a year to live comfortably, while those making at least $100,000 said they would need $246,000.

‘I feel privileged, but I do not feel rich’

Marie Incontrera, 39, pictured at her apartment in Manhattan.
Kaan Oguz | CNBC

Marie Incontrera, 39, worked as a professional composer, bandleader and pianist before launching her virtual assistant business in 2016. She then expanded her business during the pandemic into a digital marketing consulting agency.
The career pivot has multiplied her income. Incontrera anticipates her business’ revenue for 2025 to be around $1.4 million. She expects to take an owner’s draw of $300,000 to $400,000 this year.
“I had a pretty successful career as a musician through most of my 20s,” Incontrera told CNBC. “But the thing they don’t tell you about having a career as a musician in music school is that you can be playing Carnegie Hall, which I was, and I was making $15,000 a year.”
Despite her income going from $15,000 to $300,000 per year, Incontrera still doesn’t feel rich.
“I would have thought back then that the amount of money that I have in the bank right now, I would be rich, right? I would have just thought, ‘Oh, yeah, she’s made it’ … and I don’t feel that way,” she said. “I have more money anxiety, almost, now than I ever did in my 20s.”

“I feel very lucky. I feel privileged, but I do not feel rich,” Incontrera said. “I know that I am on a hamster wheel with my business. I actually really love the hamster wheel. I love what I do, but I also realize that I can’t stop.”
That’s not unusual, experts say.
“It can be pretty easy for someone to feel like, I’m making really good money, but I don’t have a lot of discretionary income,” said Kamila Elliott, CEO of wealth management firm Collective Wealth Partners in Atlanta, and member of the CNBC Financial Advisor Council.
“One of the things I focus on with my clients is a budget should be a representation of your values,” Elliott said. “The issue is you can’t value everything … You have to pick maybe one or two things where you’re going to focus your discretionary spending and then take that extra and reroute that to savings so you can start feeling rich.”
Watch the video above to learn how spending habits can leave even high earners feeling like they’re on a never-ending hamster wheel. More

President Donald Trump said the administration is considering a rebate for some Americans from the influx of tariff revenue.
If authorized, it’s unclear whether the rebate could come as a stimulus check or another form of tax relief.
U.S. customs duties totaled roughly $27 billion for June, which was a 301% gain from the previous year.   
But the rebate idea could face financial challenges, experts say.

U.S. President Donald Trump talks to reporters as he departs the White House on July 25, 2025 in Washington, DC. Trump is traveling to his Balmedie golf courses in Scotland this week.
Chip Somodevilla | Getty Images

President Donald Trump said the administration is considering a rebate for some consumers from revenue raised by higher tariffs on U.S. trade partners.
When asked by a reporter on Friday at the White House about a possible rebate for Americans from tariff revenue, Trump said: “We’re thinking about that. We have so much money coming in, we’re thinking about a little rebate.”

“The big thing we want to do is pay down debt,” Trump said. “But we’re thinking about a rebate.”
“A little rebate for people of a certain income level might be very nice,” he said.
It’s unclear whether a rebate could happen without Congressional approval. If enacted, it’s unknown whether the rebate would come via stimulus checks or another form of tax relief, experts say.
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“It’s kind of unlikely that they would go ahead and do that,” said Tax Foundation senior economist Alex Durante. “But I wouldn’t put anything past this administration.”

The Treasury Department reported an unexpected surplus for June, with a boost from tariff revenue. Customs duties totaled roughly $27 billion for the month, compared to $23 billion in May. The duties reflect a 301% gain from June 2024.   

I would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.

Alex Durante
Tax Foundation senior economist

Trump’s rebate idea comes as a chorus of lawmakers and policy experts voice concerns about the federal budget deficit.
“I don’t think [a rebate] would be particularly good policy,” Durante said. “I would prefer that the revenue was used for deficit reduction rather than just cutting checks to people.”
Enacted in early July, Trump’s “one big beautiful” tax-and-spending package could add an estimated $3.4 trillion to the deficit through 2034, according to a conventional score released by the Congressional Budget Office this week.

Rebates could ‘put upward pressure on prices’

The motivation for sending the direct payments would be different than they were during the Covid pandemic, when many households were losing income or unable to work, said Joseph Rosenberg, senior fellow at the Urban-Brookings Tax Policy Center’s tax and income supports division.
Now, the federal government is imposing tariffs that will cost U.S. households, and this would be a way of helping those individuals and families, Rosenberg said.

Because Congress just passed the very expensive “big beautiful” budget and tax legislation, rebates to individuals could exacerbate the effects on the federal budget deficit, he said.
The rebates would reinforce the inflationary effects of the tariffs that already exist, Rosenberg said.
“People will go out and spend some of that money, and that would further put upward pressure on prices and probably magnify inflationary effects,” Rosenberg said.
Pandemic-era fiscal stimulus contributed to an increase in inflation of about 2.6 percentage points in the U.S., according to 2023 research from the Federal Reserve Bank of St. Louis. More

President Donald Trump’s “big beautiful bill” changes the taxation policy on certain kinds of student loan forgiveness.
Borrowers who benefit from debt cancellation under income-driven repayment plans, or IDRs, could be hit with a hefty tax bill, starting in 2026.
One expert estimated the tax burden for such debt relief could range from $7,000 to $12,000.

Luis Alvarez | Digitalvision | Getty Images

Student loan forgiveness may be taxable again

The American Rescue Plan Act of 2021 made student loan forgiveness tax-free at the federal level through the end of 2025. Trump’s “big beautiful bill,” while making other specific kinds of student loan relief tax-free, did not extend or make permanent that broader provision.
In theory, lawmakers could move to protect the relief from taxes before the end of the year, but borrowers shouldn’t count on it, experts say.
“Republicans do not like [student loan] forgiveness, and are unlikely to make it tax-free,” said higher education expert Mark Kantrowitz.
Without action from Congress, student loan borrowers who get their debt forgiven under the U.S. Department of Education’s income-driven repayment plans, or IDRs, would face a federal tax bill again starting in 2026. (IDR plans cap people’s monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.)
That tax bill at the end of repayment could be significant — the IRS typically counts forgiven debt as income, Kantrowitz said.

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The average loan balance for borrowers enrolled in an IDR plan is around $57,000, Kantrowitz said. For those in the 22% tax bracket, having that amount wiped out would trigger a tax burden of over $12,000, Kantrowitz estimates. Lower earners, or those in the 12% tax bracket, would still owe around $7,000.
Borrowers could also be on the hook for state taxes following their student loan forgiveness. (Many states mirror the federal government’s tax policy on student loans, meaning more states may start to levy the aid next year as well, experts say.)
Consumer advocates have long criticized the practice of taxing borrowers on their student loan forgiveness. They say that borrowers who enroll in IDR plans tend to struggle to keep up with their bills, and that the government’s policy often wipes away one’s student debt just to saddle them with a tax debt.
“Forcing borrowers to remain drowning in debt is cruel,” said Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center.

‘Big beautiful bill’ makes other student relief tax-free

The “big beautiful bill” did permanently make it so that student loan forgiveness in cases of death or disability are tax-free, Kantrowitz said.

Employees who receive help from their company paying down their debt also won’t owe any taxes in the future on that relief, due to the legislation, he added. The current allowable annual tax-free contribution from firms is $5,250, but that amount will increase with inflation.
Public Service Loan Forgiveness has always been, and will continue to be, tax-free on the federal level, under its terms. (It’s possible your state will tax you on the aid). That program allows government and certain non-profit workers to get their debt excused after a decade of payments. More