Saturday,
December 4, 2021
Top Story
The Week in Review
Markets have been volatile this week as investors have received mixed signals about how the Omicron variant of COVID-19 could impact public health and the global economy.
Drugmakers are warning that their vaccines and treatments likely will not be as effective against the Omicron variant as they are against other strains of the virus. Moderna (MRNA) said its vaccine may not be as effective against the new variant and that it could take months for a new, more effective shot to be available to the public. Meanwhile, Regeneron Pharmaceuticals (REGN) said that, based on early tests, its COVID-19 antibody treatment likely will have a more difficult time fighting the new variant.
Some investors are worried that because of inflation, it will be difficult for the Fed and other central banks around the world to put stimulus measures in place if the Omicron variant puts pressure on the economy.
Speaking of the Fed, Wall Street is also wondering whether or not the central bank will speed up the process of tapering its $120 billion-per-month bond purchases. The Fed initially planned to scale back its purchases by $15 billion each month starting in November.
But Federal Reserve Chairman Jerome Powell told a Senate panel on Tuesday that the bank may rein in its bond buying more quickly in order to combat persistent inflation. Though the Fed has not shared guidance about when interest rate hikes could be coming, some investors suspect this could happen in the first half of 2022.
Wall Street will likely learn more about the Fed’s plans for the future after the bank’s December meeting in about two weeks.
For more economic news and how it affects your money, visit the SoFi app.
Exploring Student Loan Refinancing Before the End of Federal Student Loan Relief
In March 2020, as the COVID-19 pandemic struck, the White House ordered the suspension of payments, interest, and collections on most federally held student loans. After a break of nearly two years, borrowers will restart federal student loan payments. Well before 2022 arrives, it would be smart to have a strategy for repayment.
If you refinance your student loans with a private lender, a new, private loan—ideally with a lower rate—will pay off your original loans. Refinancing can be a good choice for working graduates who have higher-interest Direct Unsubsidized Loans, Graduate PLUS loans, or private loans, since interest rates are at near-historic lows.
One important thing to note is that refinancing federal student loans means the loans are no longer subject to federal benefits like income-driven repayment, Public Service Loan Forgiveness, or federal forbearance.
Comparing options, plugging in numbers, and weighing different scenarios based on your current financial picture and your goals may be helpful in assessing whether refinancing is a good option for you.
Now’s a great time to consider refinancing and it only takes two minutes to view your rate online. Refinance before 1/31/22 and get a bonus up to $1,000 deposited in SoFi Checking and Savings.®1 Check your rate on student loan refinancing today.
