The market reacts to Trump's tweets; under 11% of people with federal student loans are paying them during the pandemic; and mortgage rates hit a new low. Here's how today's headlines could affect your money.
Markets rose Wednesday morning following tweets by President Donald Trump promising to approve stand-alone, smaller bills from Congress, including one for additional Paycheck Protection Program (PPP) small business funding and another for a second round of $1,200 stimulus checks.
"I am ready to sign right now," he declared, saying, "they will go out to our great people IMMEDIATELY."
Earlier Tuesday, Trump had tweeted that he was halting coronavirus stimulus negotiations until after the election. In that case, "money wouldn't get into people's hands probably until 2021," experts pointed out. Markets had tumbled on the news.
Under 11% of people with federal student loans are continuing to pay them during the pandemic, according to a report by Mark Kantrowitz of Savingforcollege.com. The rest are benefiting from the student loan payment pause Trump enacted earlier this year, which allows most borrowers to suspend repayments until January 2021.
For many, the suspension will allow them to focus on more pressing financial needs. But if you're in a position to comfortably continue your payments, it may be smart to do so; after all, a postponement of a loan is different from loan forgiveness. For some, the psychological burden of being in debt might make debt repayment feel like an urgent priority. But weigh the repayment against the benefit of putting the money toward other goals, like building an emergency fund or boosting 401(k) contributions.
Video by Stephen Parkhurst
Mortgage rates moved to a new record low last week: Some types of 30-year-mortgages tumbled from 3.05% to 3.01%, according to data from the Mortgage Bankers Association.
The Paycheck Protection Program (PPP) is a "loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis," according to the website of the Small Business Association (SBA), which administers the loans. The program stopped on August 8, but Trump's tweets suggest that it could resume.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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