If you’ll receive $10,000 or $20,000 in federal student loan forgiveness thanks to President Joe Biden’s announcement on Wednesday, Aug. 24, you won’t have to pay federal income taxes on that amount.

In March 2021, Congress approved the American Rescue Plan Act, COVID-relief legislation that — among other provisions — excludes forgiven federal student loans from taxable income through 2025.

Loan forgiveness doesn’t apply to private student loans, so borrowers who want to lower their loan costs will need to explore options like refinancing. Credible makes it easy to compare student loan interest rates from multiple lenders.

Forgiven federal student loan amounts are generally considered taxable income under the federal Tax Code. This means you’re usually expected to include the canceled amount in your gross income that you report on your federal income tax return.

For example, if your 2020 household income was $75,000 and you received $10,000 in student loan forgiveness that year, you’d have to report your gross income as $85,000 on your Form 1040. Gross income is a starting point for calculating the amount of tax you owe. Increasing it can increase your tax bill.

BIDEN CANCELS $10K IN STUDENT LOAN DEBT PER BORROWER — WHAT TO KNOW

The American Recovery Act excludes from gross income any amount of federal student loans forgiven for any reason between Dec. 31, 2020, and Dec. 31, 2025. That includes:

The act also applies to the broad-scale forgiveness announced by the Biden administration. So if your 2022 gross income is $75,000, and you received $10,000 in forgiveness, when you file your federal taxes next year, you’ll only need to report (and pay taxes on) $75,000 of gross income — not $85,000.

While you won’t have to pay federal income tax on your student loan forgiveness, you may still possibly face state income tax if you live in one of the 43 states that have a state-level income tax.

Each state has its own tax rules, and while states often follow the IRS code as a guideline for their own tax systems, they’re not required to. It’s possible your state will treat your forgiven amount differently. In fact, 13 states have the potential to tax student loan forgiveness, the nonprofit Tax Foundation says, with additional maximum tax amounts ranging from $500 to $1,100, depending on your income and which state you live in.

If you’re unsure whether your state taxes forgiven student loan debt, it may be a good idea to consult a tax professional in your state, or contact your state’s department of taxation for help.

HOW TO PROTECT YOUR TAX REFUND FROM STUDENT LOAN TAX GARNISHMENT

Student loan forgiveness shouldn’t affect your ability to claim a student loan interest tax deduction, providing you meet all other criteria for claiming the deduction. Keep in mind, interest on federal student loans has been set at 0% since the payment pause began in March 2020. 

The deduction is also available for people with private student loans.

Refinancing can be a way to reduce interest costs or get a smaller monthly payment. With Credible, you can easily compare refinance rates from multiple student loan lenders.

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Becoming a vet can be a very lucrative career path. The average starting salary for vets going into corporate practice was $106,053 in 2021, according to the American Veterinary Medical Association. But even with a salary of that size, it may take you a while to pay off your student debt. 

If you’re looking for ways to pay off your vet school loans faster, refinancing could be a solid option. Here’s how to figure out whether it’s the right choice for you.

By visiting Credible, you can learn more about student loan refinancing and compare rates from multiple private student loan lenders.

Refinancing veterinary school loans works in much the same way as refinancing other student loans. It involves rolling multiple federal or private student loans into a new private loan, ideally with a better interest rate. 

If most of your loans are federal student loans, you may be better off consolidating them into a Direct Consolidation Loan instead of refinancing. A Direct Consolidation Loan comes with income-driven repayment options, forbearance, and access to student loan forgiveness programs. If you decide to refinance federal student loans with a private lender, you’ll lose those federal protections.

Whichever option you choose, the process for refinancing your loans works like this:

Private student loan companies set their own requirements for refinancing, so they can differ from lender to lender. But in general, lenders will look at the following: 

You can easily compare prequalified rates from multiple lenders using Credible.

Like any other financial decision, refinancing your vet school loans has both advantages and disadvantages.

While there aren’t many lenders who specialize in refinancing vet school loans, most lenders who refinance student loans will accept loans for veterinary programs. When evaluating potential lenders, consider the following criteria:

If you don’t think refinancing your vet school loans is right for you, here are some alternatives to consider. Keep in mind, these options won’t help you pay off your loans faster, but they could make your monthly payments more manageable. 

To get started on refinancing your student loans, visit Credible and compare prequalified rates from multiple lenders.

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Graduate student loans can help you pay for school as you pursue a law degree, medical degree, MBA or higher education in another graduate program. 

While the federal government offers some loans for graduate students — offering lower interest rates and more protections than many private student loans — they’re not always enough. And federal loan options for graduate students are limited.

Credible has evaluated private graduate student loans based on minimum interest rates, fees, customer service and other factors to help identify some student loans for graduates to consider. 

Eight of the following lenders are Credible partners, and offer loans for graduate students.

Loan types offered: MBA, medical, dental, law, general and Ph.D. 

Minimum credit score: Does not disclose

Fees: No application, origination or disbursement fees

Eligibility: Based on the borrower’s credit score, school, program of study, GPA and cost of attendance

Repayment options: Defer nine to 36 months after graduation, depending on program. Interest-only or $25 minimum payments in-school 

Loan amounts: $2,001 to $200,000

Loan terms: 5, 7, 10, 12, 15 or 20 years

Interest rates: Fixed or variable 

Discounts: Rate discount of 0.25 percentage points with automatic payments

Cosigner release: After 12 on-time principal and interest payments

Pros

Cons

You can learn more about private student loans from Ascent and other lenders through Credible. 

Loan types offered: Graduate, Business/Law, Medical/Dental, Bar Study, Medical Residency, Parent

Minimum credit score: Not disclosed

Fees: No application, origination or disbursement fees. 

Eligibility: Must not have previously defaulted on a student loan. Must be a U.S. citizen or permanent resident. Must be enrolled at least half-time in a degree program. 

Repayment options: Full payments or interest-only payments while in school, or defer payments completely until graduation 

Loan amounts: $1,000 to $350,000. Maximums depend on degree type 

Loan terms: 5, 10 or 15 years, fixed or variable rates

Discounts: Rate discount of 0.25 percentage points with automatic payments. Additional 0.25 percentage point discount for people with a checking account, auto loan or other product from Citizens Bank at the time they apply 

Cosigner release: After 36 on-time monthly payments

Pros

Cons

Loan types offered: Graduate, MBA, medical, dental, law 

Minimum credit score: Not disclosed

Fees: No origination or application fees 

Eligibility: Must be a U.S. citizen or permanent resident and making satisfactory academic progress. Must be enrolled in a degree program full-time, half-time or less than half-time at an eligible school. 

Repayment options: Full payments, interest-only payments or flat $25 payments while in school, or defer payments completely until graduation 

Loan amounts: $1,000 to $150,000, or $300,000 for medical, dental, pharmacy or veterinary students 

Loan terms: 5, 8, 10 or 15 years, fixed or variable rates

Discounts: Rate discount of 0.25 percentage points with automatic payments 

Cosigner release: After 24 on-time monthly payments

Pros

Cons

Loan types offered: Graduate and undergraduate

Minimum credit score: Does not disclose

Eligibility: U.S. citizens or permanent residents (excluding residents of Arizona, Iowa or Wisconsin) enrolled at least half time in a degree-granting program at an eligible school

Repayment options: Immediate repayment, interest-only, flat or full deferment

Loan amounts: $1,000 to $99,999 annually ($180,000 aggregate limit)

Loan terms: 7, 10, 15 years

Discounts: Autopay discount, principal reduction for graduating with a bachelor’s degree or higher

Cosigner release: Apply after 36 consecutive, on-time principal and interest payments

Pros

Cons

Loan types offered: Graduate

Minimum credit score: 750 without a cosigner

Fees: No application, origination, disbursement or deferment fees

Eligibility: Must be enrolled at least half-time. Borrower or cosigner must have income of at least $30,000 

Repayment options: Full payments or interest-only payments while in school, or defer payments completely until graduation

Loan amounts: $1,000 to $200,000 

Loan terms: 7, 10 or 15 years, fixed or variable rates

Discounts: Rate discount of 0.25 percentage points with automatic payments 

Cosigner release: After 36 on-time monthly payments for borrowers with 750 or higher credit score, and $30,000 minimum income  

Pros

Cons

Loan types offered: Graduate

Minimum credit score: 670 for borrower or cosigner 

Fees: No origination fee. Late fee of 5% (with a minimum of $5 and maximum of $15). Returned payment fee of $10 

Eligibility: FICO credit score no lower than 670; minimum gross monthly income of $3,333; must be Indiana resident or attending Indiana university 

Repayment options: Full payments or interest-only payments while in school, or defer payments completely until graduation

Loan amounts: $1,001 up to the cost of attendance minus other aid you receive 

Loan terms: 5, 10 or 15 years, fixed or variable rates 

Discounts: Rate discount of 0.25 percentage points with automatic payments 

Cosigner release: May apply to be released after first 12 consecutive monthly principal and interest payments. 

Pros

Cons

Loan types offered: Graduate

Minimum credit score: 670

Fees: No application, origination or late payment fees. 

Eligibility: Enrolled at least half-time in a degree program and make academic progress. Must be a U.S. citizen or permanent resident 

Repayment options: Interest-only payments while in school or defer payments until graduation 

Loan amounts: $1,500 to the cost of attendance (minus any other financial aid received)

Loan terms: 15 years, fixed rate only 

Discounts: None

Cosigner release: After 48 on-time monthly payments

Pros

Cons

Loan types offered: Graduate, MBA, medical school, medical residency, dental, dental residency, health professions, law school, bar study 

Minimum credit score: Does not disclose

Fees: No application, origination, or prepayment fees. Late fee of 5% of payment amount, up to $25. Returned check fee up to $20

Eligibility: Must be attending a degree-granting school. Must be a U.S. citizen or permanent resident unless applying with a cosigner who is 

Repayment options: Interest-only payments or flat $25 payments while in school, or defer payments completely until graduation

Loan amounts: $1,000 to the cost of attendance

Loan terms: 15 years, fixed or variable rates

Discounts: Rate discount of 0.25 percentage points with automatic payments

Cosigner release: After 12 on-time monthly payments

Pros

Cons

The following lender is not a Credible partner lender for student loans.

Loan types offered: Graduate, undergraduate, parent, professional programs

Minimum credit score: Not disclosed

Fees: None

Eligibility: Enrolled at least half-time in a degree-seeking program at an eligible school

Repayment options: Deferred, interest only, partial or immediate repayment

Loan amounts: $5,000 up to cost of attendance

Loan terms: 5, 7, 10 or 15 years

Discounts: Autopay discount, additional discount if cosigner is a SoFi member

Cosigner release: Apply after 24 months of on-time, full principal and interest payments

Pros

Cons

Credible makes it easy to compare rates from multiple lenders.

Credible evaluated private student loan lenders in 10 different categories to determine the best lenders for graduate student loans. This included interest rates, repayment options, terms, fees, discounts, customer service availability, as well as eligibility requirements and cosigner release options.

The first thing to consider when shopping for a graduate student loan is whether you qualify for a federal student loan or will need a private loan. Federal loans tend to have lower interest rates and more protections for borrowers, so you’ll want to exhaust those first before turning to the private market. 

If you’re certain you need a private student loan, there are a number of different factors to consider that can vary from lender to lender. You should be able to easily compare these factors between lenders before making your final decision.

With the number of options available, finding the right lender for your individual situation is extremely important. Here are a few common situations and the types of graduate student loans that might work best.

Federal Direct Unsubsidized Loans: Graduate students may be eligible for loans directly from the U.S. government. Interest rates tend to be significantly lower than many private loans, and you may be able to have your loan forgiven under certain circumstances.

Federal Grad PLUS Loan: Most private lenders require a cosigner if you don’t have good credit. If you don’t have good credit or a cosigner available, the Federal Grad PLUS Loan offers relatively low fixed-interest rates and will let you borrow up to the cost of attendance for your program. If you have major problems with your credit, you may be able to document the circumstances to the government and still qualify for a loan.

Many graduate school lenders have maximum loan amounts. Here are two with relatively high limits you might consider if you’re attending a particularly expensive program:

Some lenders may not disclose maximum loan amounts. If you’re concerned you may run into an issue, contact the lender before you apply. 

Borrowers with the best credit scores usually qualify for the lowest interest rates. These lenders have the lowest minimum interest rates on graduate school loans, according to Credible:

The maximum amount you can borrow may vary from lender to lender. With federal Direct Unsubsidized Loans, you can borrow up to $20,500 per year. You could then qualify for a Direct PLUS Loan that will cover up to the “cost of attendance” determined by your school. 

The cost of attendance typically includes: 

Many private lenders also use the cost of attendance when determining how much they will lend to you.

If you’re applying for a federal loan, you’ll start by filling out the FAFSA (Free Application for Federal Student Aid). Your school will use the application to determine what financial aid you qualify for, including Direct Unsubsidized Loans, which tend to be the best option for most borrowers. You’ll need to fill out a separate application for Direct PLUS Loans, should you need them to help fill in the gaps. Both offer online applications.

With private student loans, the lender will have an application for you to complete. 

Many private lenders require a minimum credit score or other credit history to qualify for a loan. If a student doesn’t meet the requirement, they can bring in a cosigner who does. A cosigner is equally responsible for paying back the loan. 

Some lenders will allow cosigners to be taken off the loan after a period of time, often 24 or 36 months if all payments have been made on time. To release your cosigner you, as the student and primary borrower, will generally need to meet loan qualifications on your own. 

To find the best rates, it’s important to shop around and compare as many lenders as possible. Credible makes this easy — you can compare your prequalified private student loan rates as well as loan terms and fees from multiple lenders in just two minutes. Keep in mind that your credit score will have a major impact on the rates you’re offered. 

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Trump Media and Technology, backed by Donald Trump, may be the target of market manipulation, according to CEO Devin Nunes who wrote a letter to Nasdaq CEO Adena Friedman on Friday. 

He alleges shares of the social media company, which trade under the ticker DJT, have been the target of short selling. This is when an investor makes a bet shares will fall. The former president is the largest single shareholder in the company. 

The stock, which went public in March 2024, rose as high as $79 per share, giving Trump a paper net worth of about $9 billion. Since, the stock has dropped, valuing that stake at just under $3 billion with shares in the low $30s. 

Trump is currently on trial in New York City over hush money payments to porn star Stomy Daniels. 

Nunes served as a Republican representative for the state of California through 2022.

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Former President Donald Trump’s newly public Trump Media & Technology company may be the target of market manipulation, CEO Devin Nunes alleged in a letter to Nasdaq CEO Adena Friendman on Friday.   

Shares of the stock, which are listed on the Nasdaq under the ticker D-J-T, have seen extreme swings since going public on March 26. 

“Reports indicate that, as of April 3, 2024, DJT was ‘by far’ ‘the most expensive U.S. stock to short,’ meaning that brokers have a significant financial incentive to lend non-existent shares. Data made available to us indicate that just four market participants have been responsible for over 60% of the extraordinary volume of DJT shares traded:  Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital,” wrote Nunes in a letter disclosed in a filing with the Securities and Exchange Commission. Citadel is run by billionaire hedge fund investor Ken Griffin. 

TRUMP MEDIA AND TECHNOLOGY GROUP CEO LETTER TO NASDAQ: READ HERE

Short selling allows an investor to profit when a stock goes down in value by borrowing against the purchase and buying it at a cheaper price. 

FOX Business inquiries to the Nasdaq, Citadel, VIRTU and Jane Street Capital were not immediately returned. 

Since the IPO, DJT shares have traded as high as $79 per share, giving the former president a brief paper net worth over $9 billion for the stock. That has dipped to about $3 billion as of Friday. 

WHAT IS A SHORT SELLER?

The shares have earned membership in the meme club, joining other actively traded stocks such as AMC and GameStop that are popular on social media chats such as Reddit. Often the shares see big daily swings without any particular news.

These stocks are also more favored by retail traders vs. big institutions, according to market experts.  

WILL GAMESTOP SURVIVE? CO-FOUNDER WEIGHS IN

The company itself has made a number of moves since its debut. This week, it announced plans to start a livestream service for Truth Social, operated by the parent company. Also, the company disclosed it may sell more stock, a potential 146 million shares of which over 114 million are owned by Trump, according to an SEC Filing. 

TRUMP SHARES TUMBLE ON PLANS TO MAYBE SELL MORE SHARES

Unlike some of the other meme stocks, DJT has not generated any revenue as a newly formed company, as noted in its IPO prospectus, and it lost over $58 million in 2023, as detailed in its Annual Report.

TRUMP ON TRIAL: LIVE UPDATES HERE

The allegations come as Trump is on trial in New York City for hush money payments to former porn star Stormy Daniels. Jury selection is currently underway. 

Nunes served as a Republican representative for the state of California through 2022.

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Mortgage rates sailed past 7%, likely dampening homebuying appetite during the market’s critical spring homebuying season, according to Freddie Mac.

The average 30-year fixed-rate mortgage was 7.10% for the week ending April 18, according to Freddie Mac’s latest Primary Mortgage Market Survey. That’s an increase from the previous week when it averaged 6.88%. A year ago, the 30-year fixed-rate mortgage averaged 6.39%. 

The average rate for a 15-year mortgage was 6.39%, up from 6.16% last week and up from 5.76% last year.

Homebuyers have seen rates teeter near the 7% market since the start of the year. Borrowing costs are likely to continue elevated as the prospect of a Federal Reserve interest rate cut moves further into the distance. 

The central bank said at its March meeting that it would continue to monitor inflation and other economic indicators to determine when to lower rates. Market expectations were for a first cut to come early in the summer, but the timeline may be later since the latest inflation figures show it is pushing up again.

“As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year,” Freddie Mac’s Chief Economist Sam Khater said. “Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.”

If you are ready to shop for the best rate on a new mortgage, consider visiting an online marketplace like Credible to compare rates and get preapproved with multiple lenders at once.

BUY A HOME IN THESE STATES TO GET STUDENT LOAN DEBT RELIEF

Spring buying will likely be tamed by still-too-high borrowing costs and limited housing inventory, two factors that have impacted homebuyer affordability. 

Despite these ongoing affordability hurdles, Fannie Mae’s March Home Purchase Sentiment Index showed that 21% of homeowners say now is a “good time to buy,” up from 19% the previous month. The percentage of homesellers who said it is a good time to sell a home increased slightly to 66% from 65%. The mortgage giant has also forecasted an uptick in housing inventory this year driven by households who may need to move for other life reasons.

“The stubbornly high mortgage rates continue to be the largest obstacle to buying a home,” Voxtur’s SVP of Enterprise Business Development Lloyd San said. “What’s more, rates are not going down as we head into the spring homebuying season, when sales would usually tick up. That will still happen; homebuying will increase, but its potential will be stifled, largely because of mortgage rates.”

If you’re looking to become a homeowner, you could still find the best mortgage rates by shopping around. Visit Credible to compare your options without affecting your credit score.

HOMEOWNERS COULD SAVE TENS OF THOUSANDS IN DAMAGES BY USING SMART DEVICES

Rising insurance costs have also impacted homeowner affordability. According to a recent Insurify report, home insurance premiums for a $300,000 property in the U.S. increased 12% in 2023 to an average of $1,770 per year. 

However, homes in areas at risk of more climate-related damages tend to pay higher premiums, while homes in less disaster-prone areas pay less. For example, homeowners in Florida — a state battered by high-cost natural disasters — pay an annual average of $9,213. Americans living in Vermont, a “very low” or “relatively low” risk state in FEMA’s National Risk Index, pay an average rate of $914.

Additionally, homeowners in disaster-prone areas face the challenge of finding an insurer. The cost of climate-related catastrophes has pushed several major home insurers to stop renewing certain policies or leave states like Florida and California entirely. 

If you have a mortgage, you’re typically required to carry homeowners insurance, but you don’t have to stick with any particular insurance company. Visit Credible to compare home insurance rates from top insurance carriers all in one place.

MORTGAGE LOAN LIMIT RISES ABOVE $1.1M AS HOME PRICES SURGE

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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Two more insurance companies are ending property insurance coverage in California, adding to the growing list of insurers fleeing the state in what has become an escalating crisis.

Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both owned by Japanese firm Tokio Marine Holdings Inc., filed notices to California’s Department of Insurance saying the companies would cease offering homeowners insurance and umbrella policies in the Golden State.

The move will impact more than 12,500 policyholders, who can expect non-renewal letters starting July 1.

CALIFORNIA HOUSING CRISIS TURNING MANY WORKING-CLASS TOWN INTO ‘MILLION-DOLLAR CITIES’: REPORT

“Given the small segment of personal lines business we write and escalating costs, we cannot sustainably support personal lines coverages and do not plan to return,” Tokio Marine Holdings said in an emailed statement to Bloomberg. “We remain committed to commercial lines in California – and across the country – and supporting our agents and customers with exceptional service through this transition.”

FOX Business reached out to Tokio Marine Holdings for comment.

The decision is the latest blow to California property owners, as insurance companies continue to raise rates for customers or discontinue coverage.

In 2022, insurance giant AllState paused its sales of new home insurance policies in California due to wildfires and higher costs of doing business in the state.

AUTO INSURANCE PREMIUMS ARE SKYROCKETING. WHAT’S TO BLAME?

State Farm followed suit last year, saying it would stop accepting new home insurance applications in California due to “historic” increases in construction costs and inflation. 

After State Farm announced last month that it would cut 72,000 home and apartment policies in California because of inflation, regulatory costs and increasing risks from catastrophes, California’s insurance commissioner, Ricardo Lara, told KCRA, “This is a real crisis.”

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According to KCRA, seven of the 12 largest insurance groups in California have either paused or restricted new homeowner policies in the past year.

FOX Business’ Chris Pandolfo and Kristine Parks contributed to this report.

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Tesla is recalling nearly 3,900 of its Cybertrucks due to an issue with the vehicle’s accelerator pedal.

The recall, announced Wednesday, was prompted by accelerator pedal pads in the trucks that “may dislodge and cause the pedal to become trapped by the interior trim,” the National Highway Traffic Safety Administration (NHTSA) said.

That issue “can cause the vehicle to accelerate unintentionally, increasing the risk of a crash,” according to the agency.

All of the 3,878 of the 2024 Cybertrucks that Tesla built between Nov. 13 and April 4 are subject to the recall, the electric vehicle maker’s safety recall report said.

TESLA ASKS SHAREHOLDERS TO REINSTATE ELON MUSK’S PAY, MOVE TO TEXAS

Tesla reported the accelerator pedal pad problem did not lead to any crashes, injuries or fatalities. It was flagged to Tesla at the end of March by a customer.

Impacted Cybertruck owners can get the accelerator pedal assembly replaced or reworked by Tesla so that it “ensures sufficient retention force between the pad and accelerator pedal to prevent the pad from dislodging,” the recall report said. The fix will be free.

Tesla let stores and service centers know about the recall Friday. That will be followed in June by mailed notification to customers, according to the NHTSA notice.

TESLA TO LAY OFF MORE THAN 10% OF WORKFORCE

The issue arose after an “unapproved change introduced lubricant (soap) to aid in the component assembly of the pad onto the accelerator pedal,” Tesla said.

The company also said in the recall report it has addressed the issue in production.

The Cybertruck is the most recent vehicle that Tesla added to its lineup, which also includes the Model Y, 3, X and S. The company makes all-electric Semi trucks as well.

ELON MUSK HOSTS ARGENTINE PRESIDENT JAVIER MILEI AT TESLA HEADQUARTERS

In late January, CEO Elon Musk touted the Cybertruck as looking “like the future.”

“There’s some very good trucks on the road, but if you were to switch out the brand name, you wouldn’t hardly know which company made them, but you definitely would know the Cybertruck,” he said. “That’s our best product ever.”

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