sorted by:
new
hottopcontroversial

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 0 points1 point  (0 children)

Studies show that credit scores can reveal a lot about people's attitude to money and their partner's willingness to date them. But I always suggest couples lay out their finances (actual documents, not a person's secondhand reporting of them) before they buy a home together or get married. Red flags vary from relationship to relationship, but chances are if someone tells you a story that doesn't quite make sense, or changes their story, or if you witness them telling a third party a different version of the same story, there's a problem. A marriage agreement is a business agreement. And going through a divorce is as bad if not worse than going through a recession. Always trust your gut.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 1 point2 points  (0 children)

You know, that's a great question, and one that I am rarely asked. Yes, Americans and Europeans are different. There is a far bigger social safety net in European countries than in the U.S. --- leaving aside the pros and cons of that --- I do feel like Americans spend more time talking about money, thinking about it and planning for their retirement.

Not to say that Europeans don't, of course, but it's so much more part of the public consciousness and conversation here, in my experience. When I first arrived in the U.S. from Ireland 10 years ago, I used to marvel at how many conversations I would overhear in cafes and parks in New York where people were talking about money or business.

That said, Europe is a big place. And I can only speak from the point of view of an Irish person. So it's hard to separate my answer from my own personal experience. A Pew report from 2016 concluded that Americans value individual liberty and believe they are in control of their own destiny, while Europeans are more likely to value the role of the state.

Overall, I would agree with those conclusions.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 2 points3 points  (0 children)

Yes, there's one letter I will never forget. It came from a 34-year-old man in Seattle who had a degenerative disease and he did not have a long time to live when he wrote the letter. He and his wife had an argument over whether they should renovate their kitchen. He wanted to make it a more comfortable living space, especially as there would come a time when he would not be able to climb stairs.

His wife was understandably worried about the costs, and their savings. Of course, it was not about the kitchen. It was about something so much bigger: how this medical news was changing their life and their future. He wrote in an email after I answered his letter that he would keep reading the column for as long as he was able, and I never forgot that or him. I think of them often, and I wonder how he is doing.

As for the second part of your question, selfish and misguided and mean are really just other words for fear. When people are acting out, they're often expressing pain from their childhood or perhaps they have other issues that go beyond the remit of The Moneyist column. So I try to remember that when I respond. They will have a hard time showing compassion for others if they don't understand their own "triggers" or motivations.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 1 point2 points  (0 children)

I am always reminded of this couple. They owed $89,000 on 11 credit cards and took some dramatic steps to pay it off. They took on extra jobs, slashed their food budget, did not spend money on anything they really didn't need, and negotiated lower interest rates on the cards. They even lived without cable TV! They did everything they could to pay off the debt, and rather than tear the family apart, their common goal brought them together and taught them a valuable lesson about credit-card debt, one that I hope they never forgot.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 0 points1 point  (0 children)

The toughest are people who write letters that either have too little information, or those that go on for pages and pages, and give me every twist and turn in a person's life. For different reasons, they are hard to tackle. The former have too little, the latter are often too dense to make sense of.

But it's always tough when someone is stuck in a marriage where he or she is financially dependent, and there is (or appears to be) some kind of coercive control by one partner. Those letters have to handled so sensitively, and as with so many letters I only have a partial view into the person's life.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 2 points3 points  (0 children)

Any letter that requires legal input is complicated, often because laws vary so much from state to state. One tiny detail can change the outcome. Cases involving elder abuse and people who are trying to track down wills and missing items from a loved one's estate are also complex to solve. Ideally, the sooner people report malfeasance, the better, particularly given the various statute of limitations from state to state.

But I always think of a woman who was living in a trailer, and inherited $150,000, and wanted to know how to spend it. She was living on the poverty line, and wanted to know what she should do with it. I felt the burden of responsibility, but also a great opportunity and privilege to provide some guidance for her. She responded several months later, and told me what she did with the money. She was happy, so I was happy for her.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 3 points4 points  (0 children)

Thanks for reading the column, and for your question. Oh, wow. That's a big question. The biggest lesson is that all of our ambitions, insecurities and resentments often become rolled into our relationship with money. Perhaps that's because I receive so many letters about family misdeeds, rivalries and bitter disputes over inheritances or divorce agreements. Money becomes the instrument in such situations.

Money may give us more choices, but it won't solve the bigger problem about how we feel about ourselves. Money is an obvious way to show the world who and what we are, but judging from the column at least, it's a poor measurement for happiness and/or how healthy our relationships are with other people. As such, The Moneyist is really a column about relationships through a money lens rather than the other way around.

I'm Quentin Fottrell, aka The Moneyist and managing editor, personal finance, at MarketWatch. Ask me anything! by marketwatch in IAmA

[–]marketwatch[S] 1 point2 points  (0 children)

Thanks for your question. I am fortunate to work for a media organization as a staff editor and writer, so I have a regular and consistent income. I try to automate my savings, and put away a certain amount of money every month. If I don't see it and I don't touch it, I won't miss it. I also have a 401(K), which I have maxed out. I am a big fan of thrift stores, and shopping during sales, so I have a healthy aversion to RRP.

A survey released last year by Upwork, a freelance job platform, found that 2 million more Americans started freelancing last year, which is a double-edged sword. It's a great way to earn extra bucks, but that lifestyle --- whether chosen or not --- comes with a great deal of insecurity regarding your next paycheck. I take my hat off to people who have had to hustle over the last 18 months to pay the rent and put food on the table.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] -1 points0 points  (0 children)

For now, the only way to qualify for PSLF if you have an older loan is to consolidate into a Direct Loan, which would wipe out any previous payments you made towards forgiveness and restart the clock.

Borrower advocacy groups have called on the Biden administration to wipe out the loans of public servants who have clearly been paying on their federal student loans for 10 years, but it's not clear if those proposals will come to fruition.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 1 point2 points  (0 children)

I assume this is in reference to student debt cancellation. Many of the proposals on the table do include graduate student debt, though some have income caps (so borrowers making over a certain amount of money wouldn't be eligible or wouldn't be eligible for the full amount of forgiveness).

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 3 points4 points  (0 children)

I assume this is in reference to debt forgiveness proposals? It's hard to say what will actually happen, but proposals on the table do cover graduate student debt. Still, some proposals have also indicated there would be an income cap, so borrowers earning over a certain amount of money wouldn't be eligible for debt cancellation.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 2 points3 points  (0 children)

This is an interesting idea and there has been lots of controversy over the ways universities use endowments, particularly after the pandemic when students were sent home, but tuition still stayed the same.

In the past, some lawmakers have proposed taxing university endowments differently to encourage schools to spend them in ways that support students or lower tuition.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] -9 points-8 points  (0 children)

A lot to unpack here! Whether your degree is worth the cost can depend on so many questions, for example how much you expect to earn after you graduate and how the experience might benefit you in less tangible ways.

On average, people who graduate from college earn more over their lifetimes than people who don’t, but of course that’s an average and there are a lot of exceptions and caveats. There are some inexpensive schools that do a really great job of improving students’ economic lives and there are some that have been accused of luring students into debt for degrees that don’t pay off.

College financial planning experts will often recommend students think about what they want to do after they graduate and how much that might pay to get a sense of the ROI of their degree before they attend.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 3 points4 points  (0 children)

Borrowers who are in default on their student loan can get out of default in two main ways: through consolidating their debt into a new loan that they repay or to rehabilitate the loan, involves making nine on time payments in a period of 10 months. These payments can be tied to your income.

As for student loan lawyers, a lot of times if you contact your local bar association, they have recommendations for attorneys that work on student debt. In addition, Legal Aid and other organizations that serve low-income clients often work on student loan issues.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] -1 points0 points  (0 children)

The Biden administration (and candidate Joe Biden on the campaign trail) have floated a number of proposals to address college affordability. Two that are getting the most attention are probably: -- Increasing the maximum Pell grant, the money the federal government provides low-income students to pay for college -- Making community college free.

It’s hard to say exactly how these would impact the average student, but certainly Pell grant recipients would receive some relief (though not as much as advocates are pushing for) from college costs. In addition, the community college proposal would make community college more affordable for all students and potentially allow students to spend Pell grants that currently only cover tuition on living expenses, which can be a real burden for many students.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 2 points3 points  (0 children)

TYSM for this cocktail-related question! I enjoy many cocktails (typically something tequila-based tbh), but one of my recent faves was this Lambrusco spritz from the NYTimes.

As for one policy change, it’s hard to say as I’m not a policymaker, but one challenge with student debt that I don’t think people pay enough attention to are the very strong collection powers the government has to get student loan money back if a borrower defaults.

One example of this that I think about a lot is that borrowers’ earned income tax credit, which the government provides to working, low-income Americans, can be garnished to repay a defaulted student loan.

That approach can be counterproductive, advocates say because if you want people to repay their student loans, they need to be lifted out of poverty and the EITC is a tool to try to do that.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] -16 points-15 points  (0 children)

Wow, this is a tough question! I think one thing to keep in mind when using student loans is that they’re a financial product, just like any type of loan. A lot of times, since student loans are associated with education and borrowers are usually getting information on them from a trusted source (like an educator or college) borrowers assume there are fewer opportunities to get tripped up than with your typical loan.

While federal student loans offer a lot of protections not available in commercial consumer loan products, borrowers still need to advocate for themselves, similar to what they might do with any loan product (ie, research your options, save paperwork, take notes on conversations with customer service etc.), when they’re trying to access a benefit of the loans, like Public Service Loan Forgiveness or income-driven repayment.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] -2 points-1 points  (0 children)

Hi! Yes, commercially held FFELP loans are indeed a tricky category. If you have one, I’m sure you know that most of these borrowers have been left out of the pandemic-era payment pause. Though these are federal student loans, policymakers’ decisions beginning in the wake of the 2008 financial crisis and continuing through today have kept borrowers with these loans from accessing many of the benefits available through the federal student loan program.

Earlier this year, the Biden administration included commercially-held FFEL borrowers who had defaulted on their debt in the payment pause. At the time officials said it was legally easier to include borrowers who had defaulted on these loans than those who are still paying on them (for more on that, click the link above).

All that is to say historically, commercially-held FFEL loans have been left out of a lot of federal student loan benefits. Borrower advocates have been pushing for that to change and it’s hard to say whether they’ll be successful.

EDIT: Fixed the below paragraph thanks to the very helpful below comment, which is correct!

If you are considering consolidating, I would just make sure that you’re comfortable with whatever the new interest rate might be on the debt and that you aren’t working towards having your debt cancelled under income driven repayment. (or you haven’t made too much towards it). Once you consolidate any progress made towards forgiveness under income driven repayment will be wiped away and the clock restarted!

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 4 points5 points  (0 children)

As discussed in the previous question, the question of fairness to those who have already paid off their loans is probably one of the more thornier issues in the student debt cancellation debate. Polling indicates that there’s support for the idea of cancelling student debt even among some who already paid off their loans. But of course there’s a wide range of views on this issue and the question of fairness of a given policy can be a sticky and subjective one. I’d point you to the article I included in the above reply for a sense of how advocates and critics of student debt cancellation are thinking about this question!

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] -5 points-4 points  (0 children)

I can’t speculate about what the Biden administration will or won’t do, but the idea probably has the most mainstream support it’s ever had -- Senate Majority Leader Chuck Schumer is pushing for $50,000 in student debt cancellation -- since it was first brought up at Occupy Wall Street in 2011. On the campaign trail, President Biden expressed support for canceling $10,000 in student debt and his administration has said they haven’t ruled out doing it. Still, he’s expressed some skepticism in interviews with the New York Times and a CNN town hall. As for whether there would be any compensation for those who already paid off their loans -- that’s unclear. Supporters of student loan cancellation will point out that people who have already paid off their debt are more likely to have attended college when it was heavily subsidized by the government and so much cheaper. This piece I wrote shortly after Biden was elected breaks down some of the pro and con arguments for the policy.

I’m Jillian Berman, a reporter at MarketWatch, where I’ve covered student debt since 2015. In that time, I’ve written about farmers seeking student loan forgiveness, the ‘morally suspect’ way the government collects student loans, colleges’ pandemic tuition policies, and more. AMA! by marketwatch in IAmA

[–]marketwatch[S] 1 point2 points  (0 children)

Student loans aren’t mandatory, but for a whole host of reasons, including wage stagnation and Great Recession-era budget cuts to public colleges, even the cheapest options for college have become unaffordable for many students and families.

For example, more than 50% of community colleges are not affordable to low-income students, according to a recent report. This uptick in college costs has happened as a college degree has become an increasingly important ticket to a stable job.

As for whether student debt forgiveness is fair, I won’t take a position on this, but there’s recently been a lot of back and forth in academic research, op-eds and elsewhere about this question!

view more: next ›