News 

Ted Cruz campaign failed to disclose Goldman Sachs, Citibank loans, FEC says

“Candidate loans financed by commercial lenders or a line of credit must be reported to the FEC, which regulates federal campaign activity” writes March At Pm for washingtonpost.com. Ted Cruz (R-Tex.) $35,000 for inaccurately reporting the source of more than $1 million in loans that came from Goldman Sachs and Citibank, according to records made public Friday. Source: washingtonpost.com

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How to finally address the country’s out-of-control student loan crisis, according to a finance professor

“On a U.S. household basis, average student loan debt totals $47,671” writes Mark T for businessinsider.com. As loan defaults skyrocket, many are exposed to long-term financial harm while rising student loan debt impacts mental health and worsens gender and racial injustice.Student loan debt is not simply a young person’s problem.Recent public health studies also have shown that student debt can impact stress level, sleep and lead to depression. Source: businessinsider.com

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I paid off $40,000 of student loans in 2 years thanks to math-based strategy I’d recommend to just about anyone

“By keeping a laser focus on my monthly spending, I was able to squeeze out every penny for debt payments” writes Eric Rosenberg for businessinsider.com. In fact, you can use it to build a complete debt payoff plan across multiple types of loans in one debt snowball or debt avalanche.If you need cash to get started on your debt-repayment journey, consider these offers from our partners: The debt avalanche is a twist on the popular debt snowball debt payoff plan.In 2012, I followed the debt avalanche method to pay off…

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Millennials so buried in debt can’t buy home, car…

“Amanda Hill, 27, deals with big student loan debt by doing everything she can to keep her other bills small” writes Susan Tompor for usatoday.com. “Average student loan debt at graduation is going to continue to increase,” said Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com.But she acknowledges student loan debt is part of many people’s lives.Many have much more than the average amount of student loan debt.Outstanding student loan debt stood at $1.46 trillion in the fourth quarter of 2018, according to a report by the Federal Reserve…

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A financial planner has advice for a 30-something with over $100,000 in student loans who wants to buy a house near San Francisco: don’t

“She wants to buy a house, have kids, and solidify her emergency fund, she told Schlesinger” writes Tanza Loudenback for businessinsider.com. “You are not buying a house right now — it will feel like you are drowning,” Schlesinger said.Linda, a 30-something Bay Area resident, is more than $100,000 in debt from student loans, she told certified financial planner Jill Schlesinger on an episode of her podcast “Jill on Money.”. By renting, Schlesinger said, “You’re not throwing money out the window, you’re buying flexibility, you’re buying opportunity, that’s how you have…

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A string of bad choices after I got married led to the best financial decision I’ve ever made for my family

“By the time our car loans were done, we were earning a lot more and demolishing our student loans at rapid pace” writes Holly Johnson for businessinsider.com. It wasn’t necessarily egregious debt since it was mostly car loans and student loans, but it sure sounded like a lot to me.For us, this meant getting rid of our small credit card balances within a few months so we could focus on the bigger loans — namely car loans and student loans.We took out big car loans and over $20,000 in student…

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Worried about next downturn? U.S. credit funds may offer early clues

“His reasons: A lot of money has flowed into private credit, pushing down lending standards in a benign economy” writes Midwest Communications Inc for 95kqds.com. “You can learn a lot by looking at the BDCs for what they might mean for other private credit,” said Carroll of S&P Global Ratings.Much of it now resides in non-bank financial entities, including commercial loan companies, such as CM Finance, private credit funds, and structured finance vehicles, many of which have yet to be tested by a broad recession after a nearly decade-long expansion.It…

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News Regulators 

Consumer credit picks up a bit in January

“Total consumer credit increased $17 billion in January to a seasonally adjusted $4.03 trillion, according to the Federal Reserve” writes Senior Economics Reporter for marketwatch.com. Big picture: Credit growth has been steady, reflecting income growth and consumer optimism.Consumer credit remains “OK for now,” he said in an interview.What happened: Revolving credit, like credit cards, rebounded in January, rising by 2.9% after a 1.1% gain in December.And the Fed’s latest survey of senior loan officers concluded that demand for consumer loans was falling while banks were tightening standards on loans. Source: marketwatch.com

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Lending gap narrows for women business owners, but it’s still 31% less than for men

“Women-owned businesses continue to be a growth engine for the U.S. economy, and recent data shows their access to capital is an indicator of the phenomenon” writes unknown author for cnbc.com. According to Biz2Credit figures, the top five states for applications from women-owned businesses were California (13%), Texas (11%), New York (6%), Georgia (6%), and Ohio (5%).The number of women-owned businesses that applied for funding in 2018 increased by 13 percent, according to an annual study of women-owned companies by Biz2Credit, a leading online credit marketplace for small companies.But it…

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Markets News 

US officials say they will investigate the risky $1.6 trillion ‘leveraged loan’ market

“Read more: The risky ‘leveraged loan’ market just sunk to a whole new low” writes Callum Burroughs for businessinsider.com. The FT wrote: “Regulators could act if their findings point to actual hazards in the market for leveraged loans.”. The Financial Stability Board (FSB) said it will investigate the growing leveraged loan industry.The total of leveraged loan new issuance was over $700 billion in 2018.Rocketing corporate debt has become a major concern, as “leveraged” lending has boomed. Source: businessinsider.com

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