Many student loan holders are in limbo and unable to view their balances or track their payment progress due to the current restructuring within the education department. The tool that was once available to help borrowers track balances and payments is no longer online and the department has said they do not plan to bring it back. Borrowers on the Save plan will need to change plans at some point but no date is set. All others have access to a variety of Income Driven Repayment plans, Income Based Repayment plans, or Income Contingent Repayment plans. A new plan known as the Repayment Assistance Plan is set to be unveiled in July 2026.
Category: Personal Finances
Mr. Beast, Financial Manager?
Would you let Mr. Beast manage your finances? The most popular Youtube star of all time with 469 million subscribers, Jimmy Donaldson is moving beyond the wild, charitable stunts into the realm of money management. His company has aquired the Step app that offers financial services aimed at teenagers and young adults. The app consists of spending, savings, and parent supervised investment accounts (until the holder turns 18). Some are concerned that Mr. Donaldson will turn his young followers into crypto gamblers but he maintains that his main goals are to give young people the financial foundation that he never had.
Mr. Beast is Getting Into Financial Services, Parents Should Pay Attention
Paperless
The IRS is going paperless. This process began in the fall of 2025 and continues as the federal government seeks to protect against fraud and improper payments. The move also seeks to increase efficiency and to reduce costs. For the coming tax season, the biggest difference will be the phasing out of paper refund checks.
Student Debt Options
Bankruptcy cases do not often include student debt because of the extra filings needed and the rate at which they are discharged. According to Tara Siegel Bernard for the New York Times, a new, more streamlined process for bankruptcy is making it easier to claim student debt and actually have it forgiven. Many jurisdictions utilize the Brunner test for those claiming student debt and the new approach to filing makes it easier to pass that test:
Can you currently maintain the loans and maintain a minimal standard of living?
Is your situation likely to persist for a significant portion of the repayment period?
Have you made a good faith effort to repay the loans?
By satisfying this test, borrower’s cases may be reviewed by the Justice Department and recommendations of discharge made to a bankruptcy judge.
Read More Here: More Student Loan Borrowers Are Shedding Debts in Bankruptcy
Credit Card Debt Assistance
This month we’re looking into specific personal finance related links that may help our customers best manage their money. As we near the holidays, it’s always tempting to spend just a little extra on credit but it pays to beware of interest rates and fees. These can make it way less fun in the future when all the bills come due. Worried about your spending or find yourself in significant credit card debt?
Sign up for Life Kit’s Credit Card Debt Newsletter and learn tips and tricks to both avoid and deal with credit card debt.
Newly Wed Tax Implications
Getting married this wedding season? Be prepared from a tax standpoint and know what paperwork you will need to complete within ten days of your nuptials. Learn this and more at the IRS website where they have all kinds of tax information and a great FAQ for just about any question. Still have more tax questions? Contact Debra Newby Watkins, CPA, 512 900-8952.
Tax checklist for newlyweds
Paying in Cash?
How would you feel if your service employees asked to be paid in cash? Would you suspect that they were trying to shave a little off of their taxes? Is it your job to “police” the people you employee for various jobs around your home? Many couples face this dilemma and may not be in agreement with each other. The Ethicist addresses this question and details why it is best to report all income when filing taxes, in his April 9, 2025 response, Our Gardener Wants to Avoid Taxes. Should We Pay Him in Cash?
1099-Ks for Online Sales and Money Aps
If you have sold items online this year and/or received money through an Ap such as Venmo or Cash Ap, you may receive a 1099-K form. The federal threshold for these types of sales in tax year 2024 is $5000 and will reduce each year until it reaches $600 in 2026. The income that these forms represent may be from online clothing sales, tickets sales, or even gig jobs. The IRS is making an effort to collect taxes from workers or online businesses who do not traditionally report their income. This article stresses that personal payments between friends and reimbursements are not taxable. If you feel you’ve received a 1099-K in error, there is a place on your 2024 tax forms to report the money as not income. Read more here: Did You Sell Concert Tickets or Clothes? You May Owe Taxes.
Small Things Add Up
Are you aware of the offers your bank gives for certain types of accounts? Do you know how much interest your regular or high-yield accounts pay? Have you ever felt confused by the information you bank sent about interest or ways to save?
These questions and more are currently at the forefront of the banking industry and have brought to light certain practices that institutions may be using to mislead their clients. Capital One was sued by the consumer bureau over advertising meant to deceive customers.
The article advises consumers to be diligent and pay close attention to “deals” when they come from their banks. These could help your money earn more. Read Here: Why Banks May Be Hoping You’re Not Paying Attention
Preparing to File Your Taxes
What are your tax prep best practices?
With the start of a new year, many begin thinking about filing taxes. The IRS offers simple tips and best practices for getting all of your paperwork in order to make the process go smoothly. This article is especially helpful for those who worry they may not be paying enough and want to take advantage of available deductibles. Read more here: Be ready to file taxes next year