Student Debt is basically the killer from an 80s slasher movie.
It can't be killed, it will come back to haunt you decades after it stopped being relevant, and it wants to punish you for having fun. If you're planning to shed your student debt by dying or declaring bankruptcy, I have some bad news for you. The loan you signed up for when you were too young to vote can often follow you and your bereaved loved ones forever. The sooner you give in, cut all leisure and luxury from your life to focus on paying off those debts, the sooner you'll be free.
But what about these Democrats running for office now? Some of them—just two, really—are coming out with some pretty radical new policies about debt forgiveness. It would be foolish to put all that time and energy into paying off debt that might just disappear if you can wait it out another year and change. And don't forget the money—all that sweet, delicious money. So, with the national burden of student debt approaching two trillion dollars, should you get to work unburdening yourself from the crippling weight of debt you were basically tricked into when you were too young to know better, or should you bet on a leftward political shift to rescue you? To figure out your chances, we need to break down each prominent candidate's position on student debt and figure out their likelihood of actually getting it done.
Bernie comes first, because he's too often ignored, and because his plan for student debt is the most aggressive. If Bernie has his way, all the student debt in the country is going out the window. Wipe the slate clean. It's like it never happened. If you're currently failing to pay off debt from multiple expensive degrees, Bernie is your best hope. He polls consistently well—with only Biden's fading star outshining him—and he's the only candidate with no restrictions or limitations on student debt forgiveness.
If you're feeling the Bern so much that you aren't concerned about how his legislation could actually get passed in Congress, you might as well take out some more loans and get another degree while you wait. But just to play devil's advocate, even if Bernie gets the nomination and wins the presidency, it's unlikely that most of his major proposals will get through. He's prioritizing Medicare For All, so unless student debt somehow gets bundled up with healthcare, a whole lot of political willpower is likely to be expended before anyone considers letting you off the hook. And even then, Bernie's plan is so much better for the powerless than for the powerful that you have to know that congress would do their best to chop it up into much more of a compromise. So... probably don't start taking out any new loans just yet.
Speaking of compromise, say hello to everyone's favorite not-quite-Bernie. Warren hasn't done quite as well in the polls as Sanders, but she's done an impressive job of chiseling out a serious spot in the top tier of contenders—far left of Biden, but noticeably more centrist than Bernie—and is generally considered to have some momentum in the polls, though that seems to be waning. As for student debt forgiveness, Warren's plan is nearly as extensive as Bernie's, with some notable exceptions.
Warren's plan would forgive up to $50,000 of your student debt if your household makes $100,000/year or less. Above that amount, the forgiveness begins to taper off, and it wouldn't cover members of households making $250,000/year at all. So if you went to NYU, you'll probably still have a lot of debt left—especially if you still live with your rich parents. That said, around 95% of people with student debt would have it eliminated, so it would definitely also need to be knee-capped by centrist legislators who just want to keep everything stable by making sure that rich people don't get any less rich. Fortunately, with Warren's focus being on her wealth tax proposal, it's a bit easier to imagine student debt being folded into the first round of Congressional activity under a Warren presidency.
Joe Biden is not going to do much for your private loans. Maybe he'll make it easier to refinance, but don't expect forgiveness. He does, however, have a plan for federal loans. If the government paid for your education, and you're paying off your loans with an Income-Based Repayment plan, Biden wants to cut your payment rates in half, from 10% of "discretionary" income—income above a certain basic threshold—down to 5%. If you make these payments for 20 years, any remaining debt is forgiven, which could actually be a lot under this new structure.
So if you're willing to wait two decades to have only federal student debt erased, Joe might work out for you. Assuming he maintains his precarious front-runner status—despite his consin poor debate performances and the minimal enthusiasm of his supporters—this more moderate plan could be in your future. On the other hand, it's still a Democrat's policy proposal, and Republican legislators would therefore treat it as full-blown communist takeover and do everything they can to cripple it. So unless you trust Biden to make it a legislative priority, don't expect much.
There are way too many other candidates to go through all their plans here, and most likely none of them have a chance. Pete Buttigieg has a ton of student debt himself, but he still prefers to focus on refinancing and cutting future costs. Andrew Yang has suggested a federal buyout of private loans, so you can pay them off to the government at less predatory rates, and he also wants to give you money every month so you stop complaining. Julian Castro wants to offer partial loan forgiveness for people who receive public assistance benefits for three out of five years. And Kamala Harris would offer up to $20,000 of debt forgiveness... if you received a Pell Grant...and you start your own business...that lasts at least three years...in a disadvantaged community. So no one you've ever met will qualify.
Whether their plans would do much to alleviate the student debt crisis or whether they'd be viable in Congress are both moot points, because none of these people are going to win the Democratic nomination, let alone the presidency.
The only kind of debt forgiveness Donald Trump cares about is the kind that involves nine zeroes, and allows him to keep putting his name on stuff. He will not help you unless he directly benefits from helping you. He is a broken man, and you and everyone you know do not exist in Donald Trump's world outside of your value to him personally. He will tell you what you want to hear, and then give you nothing. Still, nearly half the country loves him, and that portion that does matters more than the rest of us every four years, so he stands a pretty good chance of being reelected.
With that in mind, it's probably a good idea to keep paying off your student debt. Minimum payments can work if you're crossing your fingers for 2020, but if you stop paying you will destroy your credit and risk having your wages garnished—AKA gruesomely slashed. Ouch.
- How to Budget for Long and Short Term Goals - PayPath ›
- The Best Financial Tips for Millennials - PayPath ›
- How Will the Joe Biden Tax Plan Affect Me? - PayPath ›
- Apply for Income-Driven Student Loan Repayment | StudentLoans.gov ›
- Student Loan Repayment Options: Find the Best Plan — NerdWallet ›
- Repayment Plans | Federal Student Aid ›
- A student loan plan that could actually work - MarketWatch ›
- Warren's plan to wipe out student debt (and how she'd pay for it) ›
- Trump just laid out a pretty radical student debt plan - The ... ›
- Elizabeth Warren releases sweeping student debt cancellation and ... ›
- Elizabeth Warren's plan to forgive student debt would help 45 million ... ›
- Bernie Sanders pushes plan to cancel all student loan debt ... ›
- Bernie Sanders has a plan to forgive all student debt ›
Let’s face it: this sucks.
After a massive vaccine campaign, a pretty successful hot-vax summer, and a pre-holiday season which made us believe things would finally-finally be getting back to normal, we were introduced to the Omicron variant.
As booster shots slowly rolled out, none of us were prepared for how hard and how fast this surge would hit. Unlike other variants, Omicron is more resistant to the vaccine and is infecting even those with booster shots and antibodies.
And it’s really effing scary.
Places like New York are teetering on the edge of another lockdown as restaurants close, offices shut down, and events get canceled. In short: it feels like March 2020 again.
In the words of the perpetually relatable Olivia Rodrigo: “do you get deja vu?” Yes, Olivia, we do.
There are some differences to this surge. Luckily most people — especially the vaccinated among us — are experiencing mild symptoms. While numbers are up, hospitals are not as overwhelmed as they were when the virus first slammed us.
However, this time, many of us are experiencing pandemic burn out — mentally and financially.
When the pandemic first began, no one could have imagined how long it would last. Many people who were furloughed or working from home saw it as taking a few weeks off to relax and unwind. Obviously, this was not the case. Rates of unemployment skyrocketed and some were forced to move out of their homes to save money or take other dramatic, unexpected measures.
What did this look like? Burning through savings accounts, plunging into credit card debt, and adopting the precarious paycheck-to-paycheck cycle. According to CNBC “42% of U.S. adults with credit card debt have increased those balances since the Covid-19 pandemic began in March 2020.”
And while employment rates are up in 2021 and the Great Resignation has seen people seeking and finding better opportunities, the Omicron surge proves it’s not all sunshine and rainbows.
In a recent money confessional on Slate’s “Pay Dirt” column, one reader expressed their frustration at the financial setbacks they experienced during the pandemic. While they were not totaled by the changes, they had to drastically adjust their life plans.
The columnist responded: “A lot of people had their dreams shattered in 2020 … Just because your situation isn’t the same as your more-hard-hit co-workers’ doesn’t mean that you aren’t grieving the loss of your income,” giving us all permission to feel the negative feelings. They continued: “Toxic positivity is very real in the United States and inspires a lot of people to say that no matter what their life is like, they should be happy … But you can be happy and grateful, yet still, acknowledge the suck in a situation.”
This perspective reflects a necessary shift that we all need to make. Especially as we approach yet another perilous year in the land of Covidia. It’s soooo hard to continue — and continue and continue — being grateful and not be, quite frankly, fed up. So what can we do about it?
As everything is spiraling out of control, there are small things you can do to feel less overwhelmed. And maybe, less bitter, sad, or resentful — provide room to process and accept this unfortunate reality as best you can.
Feel Your Feelings
Toxic positivity festers when we assume we should feel a certain way and don’t pause to let ourselves feel our negative feelings. Emotion comes from the Latin emovere - to "move out, remove, agitate." If we really break it down we get ex "out" + movere "to move." What does that mean to us living in America in the early days of 2022? Get those negative emotions outta here. Feel them and move ‘em out.
Then take a deep look, free from judgment, at how you’re actually doing in your day-to-day life. Try daily journaling, or delve into meditation.
Take Stock of your Life
Often, without realizing it, we fall into habits that become patterns and routines that eventually become our whole lives. So, when these habits are disrupted …. by, I don’t know, a global pandemic … we’re shaken out of our comfort zone and into reality. Take a glance at your life. What are you actually, truly, grateful for? What is mere distraction?
Make a Plan
Our spending habits are the first thing to spiral out of control and the most difficult to course-correct. If you’re worried about your financial health during this time — or you want to be more vigilant just in case — try the Cleo app. This holistic service manages your money for you and helps you gain control and improve your situation. Managing your money no longer feels like a chore, and it’s actually fun!
All in all, Meet Cleo makes you feel like you have a handle on your finances. And in these uncertain times, just being aware of your standing can offer a world of comfort. With Meet Cleo as your side, you no longer have to cave to toxic positivity. This app keeps it real and chats with you like your honest, most blunt friend. And for that, we thank her.
Find out more about Cleo here and put yourself on the path to financial control.
When you think of personal finance, what springs to mind?
Kevin O'Leary of Shark Tank fame? Dave Ramsay yelling into a podcast mic? Finance bros tracking their bitcoin? Unfortunately, these are the images we're constantly bombarded by. So they're the archetypes overwhelmingly represented in personal finance.
But it's not all Chads in down vests and dad-types shaming you about your financial faux paus, the personal finance world has grown increasingly more dynamic and diverse.
With the rise of social media, the importance of financial literacy has entered the mainstream, as essential information is no longer confined to impenetrable, official documents. Instead, educators have changed their approach and are making the intimidating world of managing your money far less scary.
Through graphics, memes — and other whimsical mediums — online financial advice that's geared to younger generations is more and more common.
Now, with the help of TikTok — an app unique for wildly popularizing previously niche subjects — personal finance talk has become ubiquitous.
Who's Doing the Talking
The beauty of social media is its power to democratize. Though TikTok has been criticized for promoting those its algorithm chooses — and has even resulted in strikes from Black Creators demanding to be given more credit — it's also granted platforms to people with different experiences and backgrounds.
When it comes to financial advice, TikTok makes it super relatable. No longer is advice restricted to "skip your morning latte" and "quit that avocado toast" or other millennial-shaming behavior. These days, young people directly advise their peers by sharing sympathetic experiences.
From debt repayment to financial freedom journeys, people are engaging with the obscure realm of finances in a charismatic way.
Financial Feminists … But Don't Call Them Girlbosses
One huge TikTok sub-movement that's emerged is the Financial Feminist movement, which urges women specifically to take charge of their finances.
However, this isn't a repeat of the early 2010s Girlboss Feminism or even Corporate Feminism which encourages women to rise up within an established system. This is a whole new ball game.
By empowering women to speak to each other, personal finance is no longer a shame-game. Instead of scrolling through Reddit threads that mock people who support the trappings of the patriarchy like makeup or highly-feminine clothing — which are often deemed necessary for society to take one seriously, if not by Reddit bloggers — women learn from other women about how to manage their lives.
There's also information about unlearning feminized behaviors, helping women break out of socially coded patterns which hold them back from asking for help, asking for more or asserting — and believing! — their true value.
Financial Feminism takes into account the wage gap, talking about gendered norms and systems that prevent us from living financial lives equal to male counterparts.
Even more radical, however, are accounts which incorporate intersectional politics and social commentary. Instead of merely assessing the numbers, they examine the social structures and hierarchies that cause people to treat their money differently and radically affects how they live their lives.
These little communities have become hubs for financial empowerment for marginalized genders with the mission of helping them know themselves better, do better — and have fun while doing it!
Despite its addictive charm, you can't live your life on TikTok alone.
So while Personal Finance TikTok is an okay place to start, taking effective action means getting off TikTok… and onto a better app. Cleo is a budgeting app that's as engaging as TikTok, but actually helps you do the things you're learning.
According to their website, Cleo integrates all your accounts and — like a financially savvy and brutally honest friend — reveals what's truly going on in your wallet.
Cleo is like the coolest finance major you'll ever meet. Simply text her all your questions about your spending, your habits, and your current balances, and she'll give it to you straight.
She'll also tell you when you're running low — like when you really should skip that Starbucks stop so you'll have money left for the subway home — and keeps you on track of your goals.
Ah yes, 'tis finally the giving season!
As someone whose love-language is gift giving, I relish most opportunities to spoil my friends with sweet tokens of appreciation. I am the queen of spontaneous gifts. When I'm puttering around the city, doing my silly little tasks, I always perk up when I find some small trinket that I can give my friends.
Nothing says "I love you" more than saying, "hey, this reminded me of you." And then handing them a nod to a past conversation, or a memory we share. So, sorry to my friends for cluttering your houses with sentimental junk, but I'm even more apologetic for my fatal flaw: when it comes to the holidays … I always draw a blank!
To me, organic gifting is much more genuine than holiday gifting. Yet, if I were to use that as an excuse for turning up empty-handed to every single holiday party this season. I fear I'd start the new year off with fewer friends. And, as someone who loves to receive gifts just as much, I don't want to chance burning bridges that might hold presents on the other side.
So, when the holiday season arrives, I spend far too much of my precious time strategizing my gifts for my friends.
Often, when I draw a blank, I end up splurging on expensive gifts — a luxury candle, a decadent face oil, a classy bottle of perfume. Sure, these opulent gifts are a cop out, but they're guaranteed successes. Upon opening a package containing their favorite, overpriced indulgence who wouldn't smile?
Due to my holiday default, I'm forced to do some serious budget planning to accommodate my lavish spending. Or, more often, I go spectacularly over-budget.
However, this year, I must make a change. After my summer of post-vax hedonism that granted justification to spend more money than I'd ever dare, my holiday budget's looking pretty lean.
After sitting myself down and giving myself a strict talking to about prioritizing my savings, I've come up with some tips on how to save money around the holidays:
Review your budget
The amount of money we think we spend and the money we actually spend are two very different numbers. Grab a drink, pull out your bank statements, it's time to get to the bottom of your spending.
Take a look at two or three months and categorize your purchases. Which ones were intentional? Which ones were emotional? And how many times did you go to the coffee shop just to feel something and leave with a $10 latte and pastry? Once the truth is laid out in front of you, it's easy to see where you're bleeding money.
For me, it's coffee shops and boutique clothing stores I discover during jaunts around trendy neighborhoods. Whatever your vices are, do your best to become aware of them.
Budgeting apps like Cleo have helped me curb my impulse spending a ton! Cleo talks to me like a friend would — a friend who is not afraid to tell me no and call me out on my overspending. We all need a friend like Cleo, so download the app and watch your budget change overnight.
via Cleo App
Cut out what you don't need
It's all well and good to glance at your spending, but the next step is brutal: get honest with yourself about the purchases you could have gone without. But this isn't about deprivation, it's prioritization. What can you relinquish now to ensure you have a great holiday season later?
Cringing at past impulse buys I've made, I vowed to avoid my typical temptations, since I couldn't resist them. I know I'm easily lured into charming little storefronts downtown. So I took new routes home, avoiding the streets where all the cool clothes lie, waiting for me to cave.
I'm sure, in good time, I'll be back. But that's a problem for 2022-me. Until then, we just have to hold out for less than two months, get the gifts our friends deserve, and then it's back to regularly scheduled planning.
Make a spending plan
Saving without a plan usually leads to spending. As you narrow down what you can afford, figure out what you want to buy. I like to split it into categories: larger expenses vs. affordable picks.
Here's the fun part: shopping around. Sometimes I only have a general idea of what I want to buy, and sometimes I have specifics in mind. Either way, I love to shop around for a deal.
When it comes to saving money, research is paramount. Various vendors might have different prices, promotional codes, or sales. A quick Google search can often save you 10% or more, so don't take the first price you see as gospel.
via Cleo App
After finding the best price, I can budget for what I'm going to buy and when. Which takes me to ….
Take advantage of sales … strategically
The holiday season brings with it the promise of big, blowout sales. But, if you're not careful, you can end up spending more money during a sale — which is precisely the stores' intention.
Don't fall victim to the allure of those big, red "SALE" stickers. Instead, plot out how to take advantage of a number of sales for different products. Adding those sale prices to your spending plan will keep you focused and on track, instead of buying frivolous items no one will ever use just because the prices are slashed.
Saving money over the holidays doesn't mean you have to make a Scrooge of yourself. You can still gift and gift well, just more intelligently. Spending with intention is key to savings, while investing thoughtfully into your relationships.
Apps like Cleo can help you keep your finances on track without feeling overwhelming. With one download, you could be on your way to mega-savings.