🚀 Social Security Benefits About to Get Big Increase

Saturday,
August 27, 2022

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The Week in Review

• US stocks fell Friday after stern remarks from Fed Chair Jerome Powell in Jackson Hole, Wyoming. In an extremely brief eight-minute speech, Powell reaffirmed his commitment to fighting inflation. He said the central bank will “use our tools forcefully” and noted that raising rates will cause "some pain" to the US economy, which weighed on Wall Street sentiment.

• Zooming out, the Fed isn't convinced yet that inflation has peaked. As a result, it doesn't see itself stopping its rate hikes anytime soon. Powell is cautious about halting interest-rate increases prematurely, saying, "We must keep at it until the job is done."

• President Biden unveiled the new student loan forgiveness plan which will cancel $10,000 to $20,000 of debt for millions of borrowers. The plan also extends the “pandemic pause” on repayments until December 31.

• Traders are turning to corporate earnings for clues on the health of the economy. Signals are mixed as some companies have been slashing forecasts, while others appear to be holding strong. Advanced Autoparts (AAP) cut its full-year earnings and revenue guidance causing the stock to stumble and Urban Outfitters (URBN) reported lower-than-expected quarterly profit. Meanwhile, shares of La-Z-Boy (LZB) jumped after the furniture retailer posted better-than-expected quarterly results and issued upbeat forward guidance.

For more economic news and how it affects your money, visit the SoFi app.

What You Need to Know about Biden’s Student Debt Relief Announcement

Yesterday, President Joe Biden ended months of speculation by announcing that each American who earns $125,000 or less per year ($250,000 if filing jointly) will be eligible for $10,000 in federal student loan cancellation.

He also announced that Pell Grant recipients can receive up to $20,000 in debt cancellation. Federal Pell Grants usually are awarded to undergraduate students who display exceptional financial need.

Additionally, the pause on federal student loan payments for all borrowers has been extended yet again. Repayment is now set to resume in January 2023.

It’s natural to have questions. What loans are eligible? How can borrowers claim this relief? We’ve got the answers to all that and more in Student Debt Relief: Biden Cancels Up to $20K for Qualifying Borrowers on SoFi Learn.

This Week’s Top Stories

Tuesday was National Cheap Flight Day! Prices are about to come down on airfares until the holiday season starts picking up.
We take a look at the state of the industry and the costs of travel, and examine why Florida is the source of so many airline issues. Plus, here’s when industry executives expect staffing issues to get back to normal.
Read more >>

Social Security payments are on track for the biggest cost of living adjustment in over 40 years.
High inflation has left some low-income households on fixed incomes struggling to make ends meet. A higher payout could provide welcome relief.
Read more >>

Market experts think a housing recession is here, but buyers expecting price relief may be disappointed.
Inventory is tight and prices remain high, putting sellers in a position of relative strength. But as demand slackens, buyers are getting a little of their power back.
Read more >>

Deep Dives from SoFi Learn

Your 40s are a complicated decade where sound financial planning is crucial for a secure future. With some wise money moves, you’ll be set to make the most of this decade and beyond.
Here are financial tips for people in their 40s to help manage money better.
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By avoiding these pitfalls, you give yourself a better chance of sticking to your budget and meeting your financial goals.
Smart budgeting is vital for maintaining financial stability and setting yourself up for success. Here are some common budgeting mistakes to avoid.
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How and when do rate hikes affect bank account interest rates?
When the Fed raises rates, savings accounts usually pay more. But that’s not necessarily happening right now in all cases.
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NOTICE: The White House has announced a $10,000 forgiveness for qualifying federal student loan borrowers/$20,000 forgiveness for qualifying Pell Grant recipients/suspended all federal student loan payments and waived interest charges on federally held loans until 12/31/22. Please carefully consider these changes before refinancing federally held loans with SoFi, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans. For more information, please go to https://studentaid.gov/debt-relief-announcement/

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. Your existing student loan(s) must total a minimum of $5,000 to be eligible for refinancing. Additional terms and conditions may apply. To qualify, a borrower must be a U.S. citizen or other eligible status, have graduated with an associate degree or higher from an eligible Title-IV-accredited college or graduate program, and meet SoFi’s underwriting requirements; see SoFi.com/eligibility. Lowest rates reserved for the most creditworthy borrowers.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment, Income Contingent Repayment, or PAYE. Your existing student loan(s) must total a minimum of $5,000 to be eligible for refinancing. Additional terms and conditions may apply.

SoFi student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). For additional product-specific legal and licensing information, see SoFi.com/legal.

*Calculated savings examples are only estimates based on the following hypothetical assumptions: The minimum savings calculation assumes the borrower is refinancing $75,000 of student loans for 5 years. The maximum savings calculation assumes the borrower is refinancing $75,000 of student loans for 15 years. Both examples assume our rates increase 1% in the next year. Any payments and savings may vary and will depend on the actual loan amounts and APR for which the borrower is approved.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. The SoFi® Bank Debit Mastercard® is issued by The Bancorp Bank pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

1SoFi members with direct deposit can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.00% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rate of 2.00% APY is current as of 08/02/2022. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet

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Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 696891. (www.nmlsconsumeraccess.org)

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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