Category Credit & Debt

The Trump administration has agreed to speed up student loan forgiveness for about 2.5 million people in programs like Income-Driven Repayment (IDR), Pay As You Earn (PAYE), and Public Service Loan Forgiveness (PSLF). This comes after a lawsuit by the American Federation of Teachers over delays in forgiveness. As part of the deal, the Department of Education must start processing applications again, refund any overpayments, and report progress to the court every six months. The administration is also reviewing current loan forgiveness programs to see which ones still apply after recent legal rulings ended most of President Biden’s earlier plans for broad cancellation. A major part of the plan includes looking at how forgiven debt will be taxed in the future.

On October 29, 2025, the Federal Reserve is expected to lower its key interest rate for the second time this year, dropping it from 4.1% to around 3.9%. This rate cut is meant to help the economy by making it cheaper for people and businesses to borrow money. That means lower interest rates on things like mortgages, car loans, and credit cards. With inflation still a concern, the Federal Reserve is trying to give the economy a boost without making prices rise even more. This decision is happening while the government faces a shutdown, adding more pressure and uncertainty. Another rate cut might come in December, showing that the Fed is ready to act quickly to support jobs and keep the economy stable.

Mortgage rates in the U.S. have recently dropped to the lowest point in over a year, with the average 30-year fixed mortgage falling to 5.99%. This drop comes just ahead of a Federal Reserve meeting where a small interest rate cut is widely expected. However, many lenders have already adjusted their rates in anticipation, meaning we might not see much more of a decrease even after the Fed makes its decision. Mortgage rates are very sensitive to things like inflation, jobs data, and global events, which can quickly influence how banks set their borrowing costs. This shows how closely tied the housing market is to the overall economy during uncertain times.

As of October 2025, the U.S. housing market is at a critical turning point. Mortgage rates are still high, with the average 30-year fixed rate sitting at 6.152%, much steeper than the pandemic lows of about 2.65% just a few years ago. Although the Federal Reserve cut rates slightly in September, borrowing costs remain well above what many Americans were used to. At the same time, growing government debt and new economic policies—like tariffs and immigration crackdowns—are fueling uncertainty. Because of this, people looking to buy homes need to be extra cautious about what they can afford, how much to put down, and whether now is the right time to take on a mortgage.

In October 2025, the federal government agreed to start processing student loan forgiveness again after being sued by the American Federation of Teachers (AFT) and some borrowers. The lawsuit came after the Trump Administration paused and blocked loan forgiveness earlier in the year, leaving many struggling with debt. This change affects about 2.5 million people in income-driven repayment plans, including those in Public Service Loan Forgiveness. The deal not only brings back relief for eligible borrowers but also makes sure they won’t be hit with unexpected taxes on forgiven loans. This decision gives new hope to those who have worked hard to qualify for loan forgiveness.

In 2025, many Americans nearing or in retirement are struggling with rising debt, especially credit card debt, which is making it harder for them to retire securely. Credit card balances in the U.S. have jumped from $787 billion in 2021 to $1.2 trillion, and interest rates now average around 25%, the highest in years. At the same time, inflation has driven up the cost of living, making it tough for retirees living on fixed incomes to keep up. As a result, many are using credit cards just to pay for basic needs like food and housing. According to government data, people aged 65-74 are spending more than they earn each year, with over 40% carrying credit card debt into retirement. This growing debt is threatening the financial stability that retirees have worked their whole lives to build.