Relief Checks: Summary News 21 December
Headlines: Wednesday, 21 December 2022
- Bipartisan agreement on $1.7tr spending bill to avert government shutdown, needs to pass by Friday
-2023 funding proposal provides protections for student-loan borrowers
- Wells Fargo pays $3.7 billion for charging illegal fees and interest
- Date set for Supreme Court to hear two challenges to Biden student loan forgiveness plan
- Inflation increased 0.1 percent in November & 7.1 percent year-over-year boost in prices.
- Federal Reserve continues to push up rates as inflation begins to slow
- Workplace fatalities increased by almost nine percent from 2020 to 2021
- Thousands of workers will see a raise thanks to increases in the minimum wage that take effect in 2023
Help for those having financial problems with their mortgage payments
The Consumer Financial Protection Bureau is offering help for homeowners and landlords in dire straights with mortgage payments as well as assistance to renters that could be facing eviction.
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The Social Security Administration in the United States released the greatest cost-of-living increase in more than four decades. With an annual rate of 8.7 percent, this historic COLA will significantly increase the maximum Social Security payout.
The White House announced a plan to wipe out up to $20,000 in student debt in August. However, that program has been put on ice after being challenged in the courts and it could be months until there is a definitive decision on the matter.
In the meantime, President Biden has extended the moratorium on repaying student loans until the end of August or the lawsuits are settled, whichever comes first. But even if White House lawyers should fail to convince the Supreme Court of the legality of Biden’s debt forgiveness, there exist other legitimate federal programs that can erase all of a borrower’s student loan debt. Here’s a look…
President Biden's student loan forgiveness program, which would cancel up to $20,000 in debt, was put on ice after a judge ruled that the executive order was illegal. That challenge and another have been taken up by the Supreme Court on an expediated basis and the nine justices will hear oral arguments on 28 February. However, the fate of the White House program may not be know for months.
National average gas price 7 cents from going below $3 per gallon
National average for a gallon of gasoline is closing in on being 7 cents away from $2.99/gal- we're at $3.072/gal and falling this morning, down 23.3 cents from a year ago.
National average gas price forecast to drop below $3 per gallon before Christmas
Gas prices are heading down and on pace to drop below $3 per gallon on average nationally before Christmas. Currently, they are just over 7 cents from that mark according to data from Gas Buddy, a tech company that tracks real-time fuel prices at over 140,000 gas stations.
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Thanks to the COLA, Social Security payments will increase in 2023. Here’s when the increases will start and how much more money you’ll receive.
What have experts said?
It’s basically put the program in deep freeze until it proceeds to most likely dismantle it... They think of this as elite, selfish kids getting at the head of the line when others have had to repay their loans.
American students will likely find out the result of the student debt cancellation plan in Spring as the Supreme Court has announced when it is to hear arguments relating to the case.
The nine court justices will hear arguments on 28 February from six Republican states that are challenging the forgiveness as well as two plaintiffs who are not set for any of their debt to be written off. One of these plaintiffs had more than $45,000 of his debt cancelled by the Paycheck Protection Program.
What are the social security requirements for divorced persons?
If you are divorced, your ex-spouse can receive benefits based on your record, even if you have remarried, if:
- Your marriage lasted 10 years or longer.
- Your ex-spouse is unmarried.
- Your ex-spouse is age 62 or older.
- The benefit that your ex-spouse is entitled to receive based on their own work is less than the benefit they would receive based on your work.
- You are entitled to Social Security retirement or disability benefits.
There are conditions in which a former spouse may claim social security support after a divorce. If an ex-spouse of yours makes a claim for SSDI spousal benefits, this will not affect any benefits you are receiving from the SSA.
Oli Povey has more on how your divorce fits into the welfare state.
What does the new budget mean for student loanees?
The bill increases the size of a Pell Grant by $500 to $6,335.
The Higher Education Act of 1965 first introduced Pell Grants to the American education system and they remain the largest source of federal financial aid for students. They are designed to offer additional support for students who may not otherwise be able to afford college living expenses.
More than 93% of Pell Grant recipients come from families with a combined income of less than $60,000 per year. Two-thirds of beneficiaries come from households that earn less than $30,000 per year.
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The United States experienced its highest level of unemployment since the Great Depression in April 2020 hitting 14.7 percent. The economic stimulus measures implemented by the government helped drive the fastest economic recovery in the nation’s history.
The US began 2022 with an unemployment rate of just 4 percent and it is currently hovering between 3.5 and 3.7 percent. However, next year it is expected that the unemployment rate will again increase as the Federal Reserve maintains its policies to tame inflation.
Come January, workers in two dozen states that get paid the minimum wage will see a raise. Three others and the District of Columbia will follow suit later in 2023.
Three states will raise their minimum wage to $15 or more joining California and the District of Columbia as well as a handful of municipalities that have already mandated the sought for level. That amount is more than twice the federal minimum wage of $7.25 per hour which has been in place since the summer of 2009.
Greg Heilman takes you through the data.
Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families.
Wells Fargo has settled consumer abuse claims with authorities for $3.7 billion related to car loans, mortgages, and checking and savings accounts.
For some clients, the bank’s misconduct had extremely serious repercussions, according to the Consumer Financial Protection Bureau.
According to the CFPB’s ruling, Wells Fargo improperly seized vehicles from their owners and caused borrowers to lose their homes. In addition, overdraft fees on the bank accounts of other customers were incorrectly assessed.
Wells Fargo fined $3.7bn for multiple violations of consumer protection laws
The third largest consumer bank in the US, Wells Fargo, agreed to pay $3.7 billion in fines and damages to settle charges brought against it for violating consumer protection laws. US regulators said that the bank had illegally charged fees and interest on car loans and mortgages, incorrectly applied overdraft fees.
As well the financial institution was charged with wrongfully repossessing vehicles and improperly denying thousands mortgage modifications for homeowners. Wells Fargo will pay $1.7 billion in fines and repay $2 billion to consumers.
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New US spending bill will hold student loan servicers to account protecting borrowers
The $1.7 trillion bipartisan spending bill that will fund the government through the 2023 fiscal year included language that will help student-loan borrowers. New loans will be allocated to servicers basd on their past performance and will hold servicers accountable by reallocating loans from those with recurring bad behavior.
Additionally, Federal Student Aid will "incentivize more support to borrowers at risk of delinquency or default," and increase transparency by making the data on the performance of student-loan companies publicly available. However, the Federal Student Aid office did not receive more funding as President Biden had asked.
Nor will the bill provide any new funding for the White House to implement the student loan forgiveness program should the Supreme Court uphold the legality of the plan.
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Good morning and welcome to AS USA
You join us for news on the state of the US economy as we appraoch Christmas.