Category Credit & Debt

Trump’s PSLF Proposal Sparks Nationwide Debate on Public Service Eligibility

The Trump administration's recent proposal to limit eligibility for the Public Service Loan Forgiveness (PSLF) program has triggered debate across the country. PSLF helps public sector and nonprofit workers pay off their student loans after 10 years of service. The new rules would restrict organizations involved in activities the administration labels as "illegal," including those offering support to undocumented immigrants, providing gender-affirming medical care for minors, and even certain diversity and inclusion programs in schools. Additionally, the Secretary of Education would gain sole power to decide which groups qualify, raising concerns about fairness and politically biased decisions. These proposed changes highlight the increasing tension between policymakers over social issues and the direction of federal support for public service careers.

Millions Face Financial Strain as Trump Restarts Student Loan Garnishments

As of July 2025, the Trump administration has restarted wage garnishments for millions of Americans who have defaulted on federal student loans, ending a pause put in place during the COVID-19 pandemic. This decision follows the Supreme Court's recent ruling that blocked President Biden's plan for widespread student loan forgiveness. Now, over 5 million borrowers in default could face wage garnishments, the loss of tax refunds, or even reductions in federal benefits. Supporters say enforcing loan repayment will protect taxpayers and encourage personal responsibility, while critics worry the move will worsen financial hardship for many already-struggling borrowers.

Mortgage Rates Dip Amid Global Uncertainty, Easing Homebuyer Costs

As of July 3, 2025, mortgage rates in the U.S. have dropped slightly, making it a little easier for people hoping to buy or refinance homes. The average interest rate for a 30-year fixed mortgage is now 6.70%, while the shorter 15-year fixed loan is averaging 5.86%. This decline results mainly from confusion and uncertainty in global events, especially due to rising tensions between Israel and Iran and the involvement of the United States. These issues have caused investors to seek safer investments, lowering the 10-year U.S. Treasury yield, which directly impacts mortgage rates. Though inflation seems to be slowing down gradually, these rates suggest there is still caution among investors and lenders about the current global economic environment.

Supreme Shift: How Limiting Nationwide Injunctions Could Reshape Federal Policy Battles

The Supreme Court's recent decision on universal injunctions could significantly change how federal policies, like those impacting student loan forgiveness and immigration, are challenged. Previously, courts could issue nationwide orders to block a policy everywhere. Now, the Supreme Court is limiting this power, requiring challenges to be brought by specific groups or states directly affected. This means outcomes may vary by state or region, potentially slowing down how quickly people get relief from policies like loan forgiveness. These rulings come during a period of economic uncertainty, with many families worried about inflation, recession, and ongoing political debates about trade policies.

“One Big Beautiful Bill: Transforming Student Loans, Taxes, and College Funding”

In June 2025, the U.S. Senate is pushing to approve a wide-ranging new law called the "One Big Beautiful Bill," aimed at changing how student loans, education funding, and taxes work. This large package, backed by the Trump administration, seeks to significantly change the federal student loan system. Under the bill, new student loans taken out after July 1, 2026, would follow new repayment rules, limits on borrowing amounts, and other efforts aimed at helping students manage debt more easily. The legislation could affect millions of Americans, impacting how families plan and pay for college education, as well as how they manage their taxes each year.

Mortgage Rates Dip Slightly, but Homebuyers Still Face High Prices and Challenges

Mortgage rates recently declined, making borrowing for homes slightly more affordable after the Federal Reserve announced it would hold its benchmark interest rate steady. This decision reflects caution amid ongoing inflation concerns, which, though improving, still haven't reached the Fed's ideal 2% level. Even with slightly lower mortgage rates—the 30-year fixed-rate mortgage decreasing to an average of 6.75% and the 15-year fixed at 5.92%—current homebuyers still find home prices very high, making buying a home challenging. Economic uncertainty, particularly from global trade issues and inflation trends, continues to shape the housing market and consumer decisions, requiring careful financial planning for prospective homebuyers.

Trending now

Budgeting and Saving
Debt Management
Side hustle ideas to boost income
Investing basics for beginners