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Federal Judge Rules Against Betsy DeVos in Student Loan Forgiveness Case

Written by adminSeptember 14, 2018

It was only a few days ago that Financial Helpers reported on this developing Education Secretary Betsy DeVos story. She, along with the Trump administration, was purposely keeping students from obtaining student loan forgiveness. This is in direct violation of an Obama-era law that offered amnesty in the event of for-profit scams and fraud.

Instead of offering full student loan forgiveness, DeVos was in favor of a tiered program. This program would award differing amounts of loan forgiveness based on their income. If they made more money from their degree, the less they’d have forgiven. Rather than 100% of their loans wiped clean, the average was about 30%.

http://financialhelpers.com/new-partial-student-loan-forgiveness-tiered-program-being-worked-out/

According to the DeVos, it’s unfair for the taxpayers to brunt the full burden of student loan forgiveness laws. However, on Wednesday, a federal judge rebuked the education secretary. It delivers a substantial blow to the Trump administration’s desire to cozy up to financial institutions rather than defrauded students.

The Ruling Against DeVos

Many critics of DeVos argue that she’s a shill for the financial institutions that offer student loans. She brought several big names from for-profit schools onto her staff. It’s easy to see why the Trump administration was in favor of reducing strict regulations that prevented the predatory behavior. Yet, according to a federal judge, they were breaking the law.

According to the judge, DeVos’ actions against delaying rules enacted under President Obama were “arbitrary and capricious.” Attorney Generals from 19 states, all Democrats, filed a lawsuit against DeVos for not following these rules. She defended her actions, saying Obama’s ruling was “a muddled process that’s unfair to students and schools.”

“It’s a really big deal, it’s an incredibly important win for student borrowers and really for anyone who cares about having a government that operates under the rule of law as opposed to as a pawn of industry,” said Toby Merril, a litigator at Harvard University’s Project on Predatory Student Lending.

Actions Towards Student Loan Forgiveness Laws

It’s still unknown how this ruling will impact how the Trump administration will handle student loan forgiveness going forward. They have an appointment later today with the judge to discuss possible remedies. Advocates for students hope the judge restores the Obama rules to ensure they have protection from predators.

Another lawsuit is waiting in the wings to tackle the partial loan forgiveness program again. Until the case is settled, DeVos will most likely be ordered to abide by the current rules. It’s unknown whether Wednesday’s ruling will impact how the Department of Education will handle defrauded student cases moving forward.

Written by adminSeptember 5, 2018

Student Loan Consolidation

Student loan forgiveness programs can be helpful to many students who struggle under a mountain of debt. Attempts were made by the Obama administration to ease the burden somewhat, but the epidemic continues to get worse. 44 million U.S. citizens carry over $1.5 trillion worth of debt.

Despite these astonishing numbers, the Trump administration came out swinging for the financial instructions. The student loan watchdog, who protected students from scams, abruptly resigned. He cited in his resignation letter that the federal government no longer cared about struggling students.

This news can be unsettling for students. New student loan forgiveness laws were within reach, but the Trump administration seems hellbent on destroying them. Thankfully, in signing the latest budget for 2018, Trump was able to compromise and leave current laws in place. How long they will last, no one truly knows.

One Positive Change for Student Loan Forgiveness

It’s important to note that while Trump targeted these laws, he hasn’t done anything negative yet. Proposals aren’t law, so students should continue watching what’s going on. Financial Helpers is available to help you in this process. All it takes is one phone call to see if you qualify for student loan forgiveness programs. Our team is made up of debt experts who will take you through your list of options and get you on the path towards financial freedom. Give us a call at the number below:

Call Now 844-332-2079

Despite showing a willingness to cut programs to save money, President Trump made one big positive move in the right direction.

On January 1st, 2018, Trump’s Tax Cuts and Jobs Act went into effect. If it’s one thing the president has been great at, it’s been helping to grow the economy. The Tax Cuts and Jobs Act has done precisely that. It cut a lot of red tape, regulations, and taxes for business owners. Even small businesses have benefited tremendously from this law.

This law also helps those seeking student loan forgiveness. It made the death and disability discharge tax-free for students. Why is this important and how does it help? Let’s take a look at what it does and the advantage it gives students.

What is the Death and Disability Discharge?

Under current student loan forgiveness laws, you’re able to have your loans wiped away under specific qualifications. For example, if you end up permanently disabled or die, your loans are forgiven. It’s as simple as that. However, other types of disability aren’t as clear-cut, and forgiveness can be more difficult to obtain.

According to the Department of Education, you must prove your permanently disabled, as some disabilities can be temporary. Here are some of the guidelines:

• If you have any impairment related to service in the military. The Department of Veterans Affairs will have to certify you’re 100% disabled and unable to work.
• If you receive Supplemental Security Income or Social Security Disability Insurance and your new review is 5-to-7 years out.
• You have a doctor who certifies that you are 100% disabled and your condition will last longer than 60 months.

http://financialhelpers.com/trump-administration-signs-massive-student-loan-forgiveness-bill/

These are conditions that will make it nearly impossible for the student to repay their loans so that the government will give them a pass. What they may not realize is, having debt forgiven is considered taxable income.

Tax Implications of Student Loan Forgiveness

Any forgiven debt, including student loan debt, is considered by the government to be income you didn’t earn. You’d have to fill out a 1099-C and report it as such. It can raise the amount of taxes you owe by tens of thousands of dollars, depending on how much you had forgiven. This is a significant obstacle for anyone with a disability.

Worse yet, under the Parent PLUS Loan, parents who have a child die can have their loan forgiven. That sounds great, but the parents would still be on the hook for paying the tax hit that comes with it.

President Trump’s Death and Disability Discharge provision in the new law is a win for borrowers. They will receive student loan forgiveness that’s tax-free, so they aren’t suffering from thousands in extra charges. This problem is massive in another way: disabled people can lose their benefits if they have additional income.

Disabled individuals often receive both state and federal benefits to help with care. If they were to have their student loans forgiven suddenly, that would count as income. That much ‘income’ reported could cut their benefits altogether. This law is incredibly helpful for those in need of assistance.

Written by adminAugust 1, 2018

Life Style

For months, we’ve been hearing that the tax cuts implemented by President Trump weren’t good enough. Last December’s vote was only for the wealthy. Only mega corporations and the wealthiest top 1% had any chance of seeing benefits. Small businesses be damned!

Well, tell that to small businesses all over the country who are now thriving under the new tax code. It’s not just the taxes either, but the removal of numerous job-killing regulations. Combined, they’ve allowed small business in Main Street USA to soar.

Shark Tank Star Says Small Businesses Thriving

Kevin O’Leary of Shark Tank fame spoke on regulation cuts.

“The reduction of regulations has been remarkable in how it has accelerated small business,” he said. “These things are quietly being changed, and I really — I credit the administration for doing this. They’re making it easier to run a small business in pretty well every state I’m involved in. So that’s working.”

Wettlin Treppendahl, owner of Treppendahl Super Foods and 4th generation store owner, spoke to Congress on July 25th.

“The new tax law has had an immediate positive impact on my family business’ ability to invest in our store and local community,” he said.

Also: http://financialhelpers.com/why-are-millennials-still-struggling-to-buy-a-home/

And invest they have. Job numbers are through the roof, and part of that has to do with small businesses reinvesting their money back into their business. Treppendahl said he was able to upgrade his store and hire new employees.

Thankfully, this has a ripple effect throughout whole communities. Not only do more people get work, the act of upgrading his store provided work for local contractors and a refrigeration company. He was able to replace 12 sections of the frozen food aisle. Surprisingly, he also gave raises to his full-time workers.

Growth is Everywhere

Still, we see this unprecedented growth all over the country with similar stories everywhere you look. It is even forcing the big companies to reevaluate their plans to leave the U.S. and decide to reinvest here. Thankfully, Ford was one of those companies who chose to reinvest money into their plants in Michigan.

Gary Ellerhorst, CEO of Crown Plastics in Harrison, OH is ecstatic by the boost in business.

“The recent tax reduction in and of itself will have a positive impact on our employees and our business in 2018 and beyond. Yet, when augmented by reduction in regulation and, most importantly, the hugely positive outlook by business leaders and consumers. Which started the day after the 2016 election, the resulting booming economy takes that positive impact of the tax bill and increases it exponentially,” he said.
Tiberiu Czentye is a Romanian immigrant and CEO of All Pro Solutions. He says the tax and regulation cuts have improved the outlook and optimism of business owners everywhere.

“Until last year, many companies, including us, didn’t want to spend their money,” he said in a statement to Congress. “Because of this big tax cut, any entrepreneur can see the opportunity to invest in its company with the goal to make more money for the company and its employees. Good feeling.”

There is a small concern. These provisions will extend through 2025. Still, the hope is that the tax and regulation cuts will remain permanent, but these issues change with the weather (and with whoever is in office at the time).

Written by adminJuly 30, 2018

Life Style

When you grow up during a time of turmoil, it can distort your thinking to the point of learning not to trust a certain institution…or you might get bit!

Can we really blame millennials for not trusting the stock market after the big collapse? During the past decade, millennials either struggled through it themselves or watched their parents fight to keep their homes and jobs during the worse economic disaster since the Great Depression.

The thing is, millennials say they’re confident in investing in the various vehicles, like stocks and bonds. 66% of them say they know what to do, but they seem keener on stuffing that money in a jar in the backyard rather than investing it. In fact, 2/3rds of young adults have decided it’s best to keep their money out of the market and in their own hands.

According to Ryan Bailey, the head of Bank of the West, they’re putting their money at risk by doing this.

“Millennials have been stuffing their savings under the mattress instead of putting their income to work through strategic investments. While this may seem safe, they are putting their goals at risk by keeping cash on hand. While they are young, millennials have time on their side and could be missing an opportunity to grow their savings over a lifetime.”

That might be exactly the thing on their minds. They’re still young and have plenty of time to plan for retirement. We’ve written previously about millennials not so focused on retirement just yet. They’re more invested on digging out of extreme student debt or saving to buy a house.

According to a survey, 65% of millennials say the Great Recession has given them pause to invest in the stock market. This is despite an extremely bullish few years that saw stocks rise to their highest levels in its history. It seemed as if a new record was set every other day, making those who dared to invest quite wealthy.

Still, millennials aren’t too concerned with their future. And it’s just not their age group. 21% of all Americans have no retirement plan or savings at all. Either they can’t afford to save or they aren’t too concerned. That seems to be a major habit of a lot of Americans as the economy gets better…live for today and they’ll worry about tomorrow when it comes.

Due to this fear, the Trump administration wants to make it easier for all Americans to prepare for retirement, either by saving or helping to incentivize employers to provide plans to their employees, with the second round of tax cuts.

Written by adminJuly 19, 2018

Politics

If you were worried that the tax cuts implemented this year didn’t do enough to help middle class workers, worry no more.

Yesterday, President Donald Trump met with the Republican House Ways and Means Committee to start work on what he considers the second phase of his tax cut plan.

President Trump received a lot of flak from democrats over his first round of cuts that they say went solely to the rich. Even though 80% of the country saw some type of tax cut, it was intended to help spur business and improve economic growth. It’s done exactly as intended.

Over 430 U.S. companies announced one type of bonus, pay increase, or even 401(k) hikes that have impacted over 4 million Americans thanks to the first round of cuts.

This time around, Trump hopes to focus on the middle-class in what should be a packaged deal of multiple bills. One of those bills involves making all the tax cuts permanent, something the democrats also blasted Trump over.

“That’s very high on everybody’s list and I think you’ll get more bang for the buck on these tax cuts if you do make them permanent,” said Trump’s Economic Director Larry Kudlow

The hope is to boost the average American income by as much as $4,000 per year.

This second round of bills might also help businesses even further by slashing the corporate tax rate even further by dropping it another percentage point, down to 20%. The extra percentage, Trump says, is ‘great stimulus’ to keep the job growth roaring.

While most of us are cheering additional tax cuts, the GOP hopes to do more than put money in American’s pockets. They also want to promote saving.

The report from Northwestern Mutual revealed that 21% of Americans haven’t saved a dime for their retirement and two-thirds simply don’t have enough saved and are expected to run out in the near future.

Republican Kevin Brady of Texas, the House Ways and Means Committee Chair, believes it’s important for the government to help its people be better prepared for their retirement, and it’s an issue that will hopefully be addressed in September with the rest of the tax cuts.

“We are looking at ways where it’s easier for families to save earlier in life and more over time, whether it’s for health care or for retirement,” Brady said. “We think America is not a nation of savers; we want it to be.”

The idea is to potentially create some type of universal savings account designed to grow over time and be tax-free, as well as simplifying the process of withdrawing the money and even making HSAs easier to use.

Pensions are another consideration.

“We want to make sure they’re adequate and they’re secure for the long term. Workers count on that. Businesses count on that to recruit good workers as well,” Brady added in an interview.

There’s still a long way to go between now and actually having the bill passed that is sure too impact the midterm elections. We’ll keep you up to date as this story develops.

Written by adminJune 28, 2018

Politics

As countries across the world continue to play a nasty game of tariff tug-of-war, industries in nearly every sector are crying for mercy.

We reported last week that not everyone suffering, as steel industry in the U.S. is now booming. But what about the companies that use steel in their products? Mid-Continent Nail in Poplar Bluff, Missouri, decided to lay off 60 workers to help fight back against sluggish sales directly linked to Trump’s tariff that put a 25% tax on imported steel.

The company says orders for nails dropped and astounding 50%. Mid-Continent Nail is now pleading with the Commerce Department for an exclusion on paying tariffs if they hope to stay operational by Labor Day. They feel their only options at this point is to get an exemption, move operations to Mexico to stay afloat, or shut down altogether.

Now that President Trump is looking to retaliate against China’s retaliation of the first tariff, he’s eyeballing foreign-made cars as the next plan of attack. The problem is, automakers in the U.S. are trying to convince Trump that such a move would be horrible for the already fragile auto industry here in the States.

A 25% tariff on imported cars would be equal to taxing them $45 billion, increasing the cost of a new car by nearly $6,000. This higher cost would undoubtedly lead to job cuts and even plant closures.

“Tariffs will lead to increased producer costs, increased producer costs will lead to increased vehicle costs, increased vehicle costs will lead to fewer sales and less tax receipts, fewer sales will lead to fewer jobs, and those fewer jobs will significantly impact many communities and families across the country,” said the Alliance of Automobile Manufacturers in a letter.

Right now, Trump is waiting on word from the Commerce Department to determine if foreign cars can be considered a national security threat, giving him the justification he needs to slap a hefty tariff on imports.

President Trump has also threatened to do the same to the EU if they retaliated against U.S. tariffs.

Trump said in a tweet: “Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20 percent tariff on all of their cars coming into the U.S. Build them here!”

Of course, it wouldn’t be easy for any company or industry to just pull up stakes and move to the U.S., especially when the labor costs are much more expensive to run a plant here. Rather, the automakers are hoping they can convince the president NOT to start a trade war over cars.

The Peterson Institute for International Economics released a report revealing that such tariffs would go deeper than a few jobs lost. We would be looking at a 1.5% decline in overall production over a 3-year period, which could cost nearly 200,000 jobs.

That’s only if Europe and China don’t retaliate with tariffs of their own. If that happens, the job losses could soar to nearly 625,000 in a scenario that would completely devastate the auto industry.

All we can do now is wait on the Commerce Department’s findings on the issue. It’s difficult to understand how foreign cars could be considered a national security risk, but that didn’t stop them from coming to that same conclusion with foreign steel

We will continue to cover this story as it develops.

Written by adminJune 25, 2018

Life Style

It’s often known that in the summer, you’ll be paying more for gas. Rising prices typically signal a boost in demand as more people decide to go on trips and family vacations during the summer months.

Last Friday, President Trump made a tweet that might’ve spurred OPEC into action, stating that he hopes they will increase their output substantially to keep the price of oil down.

It wasn’t but a short time later when OPEC announced that they would indeed boost their production, flooding the market with oil and ultimately lowering the price at the pump.

In 2016, gas prices were falling significantly to the point where the major oil companies were having to lay off thousands of workers collectively to maintain profits. OPEC struck a deal with Russia and other major oil producers to curb production and cut the excess supply that kept the prices ridiculously low.

A lot can change in a few years, as now the world is concerned about an oil shortage. Prices have spiked 20% as demand has risen due to an improved economy in the U.S. and outages in major oil producing countries like Venezuela.

OPEC looks to increase the production by one million barrels, which will help ease some of those concerns and lower the prices, but the concern is that they would need to increase the output by 2 million barrels to keep up with current demand. That’s going to be a problem, as a lot of OPEC members will struggle to increase their production.

It’s expected that the increase will hit the global markets in July, but it has not yet been decided which countries would ramp up their production. In fact, gas prices rose at the end of last week as many investors actually expected to hear better news.

Cornelia Meyer, energy analyst and CEO of MRL Corporation, said last week that the OPEC leaders were “there own worst enemies” and that the current increase is “enough” to supply demand.

While we as consumers can be glad for lower prices this summer, a shortage is still expected later in the year unless OPEC can figure it out before then.

Written by adminJune 21, 2018

Politics

Not everyone likes the idea of a tariff. If you’re a consumer of products, you might think of the tariff as a tax on you. If products (or the ingredients used to make a product, like steel) become more expensive, it often results in the loss of jobs and higher costs deferred to the customer.

To stay competitive, industries seek out cheaper stuff from foreign markets. China’s labor, for example, makes steel extremely cheap to produce compared to American steel, so it’s highly favored in industries trying to stay competitive. Why would you buy more expensive steel?

President Trump is attempting to combat that problem while hopefully spurring job growth in key industries. Many business groups and even Republican allies are upset at the tariffs and potential pending trade war that grows in intensity with each passing day, but it’s not all bad news for everyone.

Yesterday, President Trump visited one of the states who is feeling the positive impact of tariffs. Minnesota is one of the major iron producers in the country. Iron is used to make steel and Minnesota’s iron accounts for nearly 80% of all the first production steel made here.

As you can imagine, the iron industry in Minnesota is extremely happy about the tariffs. President of the Iron Mining Association of Minnesota, Kelsey Johnson, will tell you the same.

“He’s been fantastic on our issue and really, this has changed the dynamic in the economy in northeastern Minnesota so we’re really supportive. In 2015, we had a significant economic downturn due to high levels of imported steel and unfortunately, that really affected our iron mines in Northeast Minnesota.”

The Political Impact

It’s not just the people of Minnesota who love the tariffs. You can find states like Ohio, Michigan, Pennsylvania, and others, specifically in the rust belt, who felt left behind by the government. Blue-collar workers came out in droves to vote for President Trump, a candidate they believed would help get industry moving in the country again.

The problem is, the GOP is, by standard, free trade advocates. They often side against protectionist arguments. The democrats are always against Trump no matter what, so while both sides of the aisle hate this move, Trump is scoring political victories and support.

Krystal Ball, a liberal writer for The Hill, wrote a supportive message about the tariffs in her article, “I Hate Trump, but I Love These Tariffs.” The overall message is that Trump’s policies show care and concern for the forgotten workers and industries of America, which have been dying out for decades.

She’s not wrong. With unprecedented growth in nearly every economic sector, employment numbers at record levels, and once near-dead industries hiring again, there is somewhat of a positive story to tell about tariffs. It almost makes up for having to pay extra for products knowing the good it does.

Written by adminJune 19, 2018

Life Style

It almost seems like we write a new article every day about the impending global trade war, as new developments are happening regularly. We cover this extensively as it’s our goal to help all Americans achieve their dream of living their life financially free.

This trade war will impact all of us, from the big streets in New York to the small farming communities who live and die on the agriculture they produce.

Since before he was elected into office, President Trump has made it one of his main goals to protect American workers, revive near-dead industries, and right the wrongs of the trade deficits we have with countries all over the world.

It sounds like a good idea until these countries decide to rebel and retaliate with tariffs of their own. They’re not happy with the president over this issue and threaten to fight back in their own way. This will translate to misery here in the States.

One of the products China says they will tariff are soybeans, which are grown in abundance in Iowa and other Midwest states, but the Chinese tariffs could become an economic disaster for farmers.

Chad Hart, and economist at Iowa State University, has calculated the farmers in his state will lose as much as $620 million this year alone if China tariffs their crop.

“Any tariff or tax put in place will have a significant impact, not only to the U.S. soybean market, but to Iowa’s because we’re such a large producer. It will slow down the market,” he said.

Soybeans are the most widely planted crop in the U.S., so any tariff placed on it would be disastrous for our agriculture. It might not just be a temporary setback either. Senator Chuck Grassley, a republican from Iowa, believes this could lead to a permanent loss for this area.

“It could be devastating for local communities across the Midwest. It’s also important to remember that when trade barriers go up, alternative sources of goods are found, and new trading relationships develop. A temporary setback could quickly develop into a permanent loss,” he said in an interview.

This can be a nightmare scenario for the Midwest. China imports nearly 61% of the U.S. soybean crop, so this type of loss would be devastating.

Soybeans aren’t the only victim, as other commodities like aluminum, lead, cotton, oil, and gold have been losing their value as Mexico, Canada, U.K., India, and the EU have also threatened to retaliate with tariffs.

The U.S. may be the largest economy in the world…and it’s not even close…but the question remains how big of an impact this would make on U.S. consumers as price hikes will assuredly be passed down to them.

Written by adminJune 18, 2018

Politics

When people talk about World War 3 happening, they didn’t realize it would be in the form of a global trade war that threatened to impact the world’s economies.

So far, we’ve extensively covered President Trump and his attempts to gain fairer trade and the retaliation of China and Europe, but now India is jumping into the fight as well.

This week, India has announced retaliatory tariffs of their own on 30 U.S. products ranging anywhere from apples and almonds to metals and chemicals. These tariffs total around $241 million, which is on par with what India is expected to lose once Trump’s tariff on steel and aluminum goes into effect.

India also plans to increase its already large tariff on U.S. motorcycles like Harley Davidson, an issue Trump has complained about in the past. It seems unfair that countries can have tariffs on U.S. products, but if the U.S. sets a tariff, it’s met with retaliation, so the move speaks volumes.

These new rounds of tariffs are due to take effect on June 21^st and India says they’re open to adding more if necessary.

“India reserves the right to adjust the specific products for which [tariffs would apply], and its right to adjust the additional rate of duty imposed on such products,” they said in a filing to the World Trade Organization.

Currently, the deficit of trade between the U.S. and India sits at $30.8 billion with India getting the advantage. These tariffs are an attempt by the Trump administration for the U.S. to cut the trade deficits that happen worldwide, but our allies won’t have it, which means that the storm clouds are gathering over further economic prosperity worldwide.

Last week, we reported China’s move since a 25% tariff was slapped on Chinese products and Canada’s frustration with the U.S. as well.

The U.S. implementing tariffs to recoup money lost in trade deals seems like a fair deal, but with countries worldwide promising to retaliate (and refusing to back down), industry all across the board will suffer.

If the cost of these products goes up, then that means jobs will be cut and economic production within these industries will slow to a crawl. Losing jobs, especially in recently-hit sectors like the auto industry, would stop the unprecedented growth we’ve seen in recent months.

One can only hope that this situation gets taken care of before a global trade war goes too far and hurts everyone in the process.

The Ruling Against DeVos

Actions Towards Student Loan Forgiveness Laws

One Positive Change for Student Loan Forgiveness

What is the Death and Disability Discharge?

Tax Implications of Student Loan Forgiveness

Shark Tank Star Says Small Businesses Thriving

Growth is Everywhere

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