Biden administration bans medical debt from credit reports
With less than two weeks left until President Joe Biden leaves office, his administration announced a new rule Tuesday, Jan. 7, that could lift the credit scores of millions of Americans. The finalized rule will not only stop medical debt from being included on credit reports, it will also ban lenders from using certain medical information in loan decisions.
The rule also bans lenders from using medical devices like wheelchairs or prosthetic limbs as collateral for loans and bars lenders from repossessing the devices if patients aren’t able to repay the loans.
Lenders will still be able to consider medical information in certain situations, like when the loan would be used to pay health expenses or if a person asks for a temporary postponement of loan payments for medical reasons.
Today, the CFPB finalized a rule that will remove an estimated $49 billion in medical bills remaining on the credit reports of about 15 million Americans.https://t.co/PeCoLAeQSH
The CFPB says the measure will boost the credit scores of people with medical debt by 20 points on average. It’s also expected to lead to the approval of 22,000 additional mortgages a year.
The rule would take effect 60 days after it’s published in the federal register. However, the incoming Trump administration could undo the new rule because Congress has the opportunity to review and rescind final rules. President-elect Donald Trump is set to be inaugurated on Jan. 20.
Biden cancels $4.28 Billion in student debt for public service workers
The Biden administration has announced $4.28 billion in student loan forgiveness for 55,000 public service workers. This latest round of cancellations brings the total amount of debt relief approved by President Joe Biden to nearly $180 billion for approximately 4.9 million borrowers.
The program forgives federal student loans for government and nonprofit workers. However, they’d only qualify after 10 years of making qualifying payments.
Historically, people have criticized the program for its complexity. The Biden administration overhauled the program in 2021 to simplify the process.
The administration highlighted the program’s impact, stating it has allowed borrowers to pursue financial and life plans previously delayed by student loan debt.
Many borrowers were approved but are still waiting for forgiveness. Many have expressed concerns about how the upcoming administration will handle the program.
During his first term, President-elect Donald Trump’s administration delayed forgiveness for students defrauded by for-profit colleges.
Federal courts have blocked many of Biden’s efforts for broader student loan relief. That includes a plan to forgive debt for more than 25 million borrowers.
Federal judges also halted the Biden administration’s SAVE repayment program before it could be fully implemented.
Vietnam real estate tycoon faces death penalty in $12.5B fraud case
A Vietnamese court has upheld the death sentence for real estate tycoon Truong My Lan in one of the largest fraud cases in the country’s history. Lan, chairwoman of the Van Thinh Phat Group, was convicted of embezzling $12.5 billion through fraudulent schemes, disrupting Vietnam’s banking sector and raising concerns about financial oversight.
Lan was found guilty of using her control of Saigon Commercial Bank (SCB) to issue more than 2,500 fraudulent loans through shell companies between 2012 and 2022. The embezzled amount represents nearly 3% of Vietnam’s gross domestic product in 2022.
A court in Ho Chi Minh City rejected Lan’s appeal, stating that her sentence could be reduced to life in prison if she repaid at least $9 billion of the losses. Her lawyers claim that some assets have been returned, but disputes over property valuations have delayed further restitution.
Lan’s crimes extended beyond SCB. Authorities accused her of fraudulent bond schemes worth $1.2 billion involving 36,000 investors, siphoning $18 billion, and illegally transferring $4.5 billion internationally.
Van Thinh Phat Group, which Lan founded in 1992 during Vietnam’s transition to a market-oriented economy, became one of the country’s largest real estate firms. It developed luxury residential complexes, hotels and commercial properties, while her alleged control of SCB provided access to resources that funded fraudulent schemes benefiting her companies.
This case has significantly disrupted Vietnam’s banking sector, undermining public confidence and raising questions about financial oversight. Analysts view it as part of a broader anti-corruption campaign targeting high-profile figures in business and government.
Vietnam has intensified its efforts to combat corruption, with the death penalty being a possible sentence for crimes such as fraud and drug trafficking. Lan retains the option to seek a presidential pardon, which could result in a reduced sentence. The case remains a focal point in Vietnam’s efforts to address white-collar crime and restore trust in its financial systems.
Lan’s family members and associates, including her husband and niece, were also implicated in the scandal, with several receiving prison sentences. The case has drawn attention to the extent of corruption in Vietnam’s banking and real estate sectors, raising concerns among investors and citizens alike.
Financial strain hits thousands of veterans due to mistakes by VA
On Veterans Day, we honor those who have served our country, but for some veterans, the Department of Veterans Affairs (VA) is causing financial strain instead of providing support. NPR reported that the VA has left thousands of veterans struggling with higher mortgage payments that they cannot afford.
Thousands of veterans have been affected by VA missteps, which raised monthly mortgage payments for 1,300 veterans by as much as 50%.
Records gathered by NPR show that modified mortgages —originating after Oct. 1, 2022 — saw increases of $201 to $500 per month for nearly 1,500 veterans. Additionally, mortgages for 675 veterans rose by $100 to $200 per month.
One such veteran, Army veteran Natalie Donaldson, shared her experience with NPR. After placing her loan in forbearance during the pandemic to care for a sick relative, Donaldson was offered two options: She could either pay back $15,000 in missed payments or accept a modified loan with a much higher interest rate. Her payments shot up by $500 a month, a 50% increase.
“I bought a house I could afford, but now I can’t,” she told NPR.
The VA had initially told veterans who wanted forbearance that their missed payments would be added to the end of their loan term, but in October 2022, the VA changed its policy. As a result, many veterans, like Donaldson, are now stuck with unaffordable loan modifications.
Thousands of veterans were on the verge of foreclosure until a group of senators wrote a letter to the VA, asking the department to halt the foreclosures.
In response, the VA launched a new “rescue” program offering veterans the chance to re-sign for loans at lower interest rates. However, this program only applies to veterans who did not accept a modified loan, thereby excluding Donaldson and many others who are still left with unaffordable payments.
The VA told NPR it doesn’t have the authority to include these veterans in the new program.
Harris, Trump field questions during town halls as Election Day nears
With less than three weeks until the presidential election, the candidates are blitzing battleground states and the airwaves with town halls. And in a possible blow to small businesses hoping to rebuild after Hurricanes Helene and Milton, one federal agency is running out of money. These stories and more highlight your Unbiased Updates for Wednesday, Oct. 16, 2024.
Harris, Trump field questions during town halls as Election Day nears
With less than three weeks to go until Election Day, the candidates fielded questions on Tuesday, Oct. 15, in two different town hall settings.
Democratic nominee Vice President Kamala Harris took part in a town hall in Detroit hosted by radio personality Charlamagne tha God as she looks to reach Black voters. During the town hall, the vice president said she believes slavery reparations should be studied.
Harris said while she is running for “president for everyone” she is “clear-eyed about the history and the disparities that exist for specific communities.”
The vice president also urged Black Americans not to sit out on Election Day.
Vice President Harris: Ask Donald Trump what his plan is for Black America. I'll tell you what it is. Project 2025 wants to implement stop-and-frisk. It wants to make it more difficult for workers to receive overtime pay. He wants to terminate the Constitution, which includes… pic.twitter.com/ZAQNgRkRyq
“The solutions that we all want are not going to happen in totality because of one election but here’s the thing: the things that we want and are prepared to fight for won’t happen if we’re not active and if we don’t participate,” she said. “We cannot allow circumstances to take us out the game because then basically what we’re saying is all those people who are obstructionist, who are standing in the way of change, they’re winning because they are convincing people that it can’t be done so take yourself out, don’t participate. Look at that circle, look at that vicious circle, then so let’s not fall for it.”
Meanwhile, Republican nominee former President Donald Trump participated in a Fox News town hall in Georgia moderated by host Harris Faulkner.
The town hall had an all-female audience, with the women posing questions to Trump on issues such as the economy, immigration, and abortion. According to reports of the event, which will air later Wednesday, Oct. 16 on Fox News, Trump said some states are “too tough” when it comes to restrictions on abortion and those laws “are going to be redone.”
“The African American community and the Hispanic community are being devastated with the jobs, the numbers are down 6, 7, 8, 9%. They are going to work, and they’re saying, ‘I’m sorry, we’re not going to take you any more.’ People that have worked there and worked there well for years are now being told that they no longer have a job because they have illegal immigrants coming in and taking their job,” Trump said. “Any African American or Hispanic, and you know how well I’m doing there, that votes for Kamala, you got to have your head examined, because they are really screwing you.”
Early voting begins in Georgia with record turnout
Early voting has begun in the battleground state of Georgia and it’s already seeing a record turnout. Voting for the Nov. 5 presidential election started Tuesday and by the late afternoon, at least 252,000 voters had already cast ballots at early voting sites.
That’s nearly double the 136,000 who voted on the first day of early voting in the 2020 election, according to a top Georgia election official.
Also Tuesday, a judge blocked a new rule requiring Georgia Election Day ballots to be counted by hand after the close of voting. That ruling came just a day after the same judge ruled county election officials must certify election results by the deadline set in law.
Small Business Administration runs out of disaster relief funding
The Small Business administration has run out of funding for its disaster assistance loans right after the one-two punch of Hurricanes Helene and Milton. That means much-needed financial assistance will be delayed for people applying for help right now.
After a disaster, the SBA provides loans to businesses and people who need them. The organization had warned it expected to run out of money by the end of the month.
Congress can approve more funding, but lawmakers are not set to reconvene until Nov. 12. The SBA administrator said in the meantime, people that need them should keep applying for the loans.
HURRICANE #MILTON SURVIVORS: Business owners and residents in declared disaster areas can now apply for SBA assistance.
Israel strikes Beirut despite U.S. opposition; vows to avoid nuclear sites in Iran
At least one Israeli air strike rocked a Beirut, Lebanon suburb early Wednesday morning, killing at least 15 people according to the Associated Press. The strike came just hours after a State Department spokesperson said the U.S. told its key ally it opposed the bombing campaign there in recent weeks.
On Tuesday, the United Nations’ Human Rights Office called for an investigation into an Israeli air strike that happened on Monday which killed at least 21 people in northern Lebanon, saying it posed “real concerns” because it may have violated international laws governing war.
This comes as a Biden administration official said Israel has assured the U.S. it will not hit nuclear or oil sites when it retaliates against Iran for its missile barrage earlier this month.
However, that does not mean Israel will keep its word. In the past, the country’s track record of sticking to what it tells the U.S. has been mixed.
Just last month, U.S. officials were told by their Israeli counterparts Prime Minister Benjamin Netanyahu would welcome a U.S.- and French-led temporary cease-fire initiative in Lebanon, only for Israel to launch a massive airstrike that killed a Hezbollah leader two days later.
Johnson & Johnson ordered to pay $15M in baby powder cancer case
A jury has ordered Johnson & Johnson to pay $15 million to a Connecticut man who says he developed a rare form of cancer after using the company’s baby powder for decades. The man says he contracted mesothelioma from inhaling the talc powder.
The jury also said Johnson & Johnson should pay additional punitive damages, which will be determined later by the judge overseeing the case.
After the ruling, Johnson & Johnson’s vice president of litigation said the company will be appealing the decision, saying “erroneous” rulings by the judge kept the jury from hearing critical facts about the case.
Tom Brady approved to become minority owner of Raiders
Tom Brady has been called many names: the GOAT, Super Bowl champion, and NFL commentator, to name a few. Now, he can add team owner to that list.
On Tuesday, NFL team owners voted to approve Brady’s purchase of a minority stake in the Las Vegas Raiders. The former NFL quarterback said in a statement he is eager to contribute to the Raiders organization in any way.
Because of his new title, Brady faces some restrictions in his other role as a Fox broadcaster, including being barred from weekly production meetings with the players and coaches in the games he will cover.
North Korea blows up key roads, rail lines on border with South Korea
North Korea carried out explosions Tuesday, Oct. 15, that destroyed sections of inter-Korean roads and rail lines along its side of the heavily fortified border with South Korea, marking an escalation in already heightened tensions between the two countries. The South Korean military confirmed the blasts, which took place on the Gyeongui and Donghae lines—two key routes that connect the Koreas.
The actions follow Pyongyang’s recent declaration to sever all rail and road links with the South and further fortify its side of the border. The North’s military deployed heavy equipment to the area, presumably to continue dismantling infrastructure. In response, South Korea’s forces fired warning shots south of the Military Demarcation Line. No damage was reported on the South Korean side.
South Korea’s Joint Chiefs of Staff (JCS) said the country is closely monitoring North Korean activities and maintaining heightened surveillance in cooperation with U.S. forces. South Korea’s unification ministry condemned the North’s actions as a violation of past agreements, calling the incident “highly abnormal.”
The North’s decision to dismantle the border infrastructure comes after a year of escalating tensions. In December 2023, North Korean leader Kim Jong Un officially designated South Korea as a “hostile state.”
Since May 2024, Pyongyang has sent thousands of “trash balloons” across the border in response to similar launches from South Korea, where anti-regime activists have been sending materials such as leaflets and rice into North Korea. Tensions worsened further last week when North Korea accused Seoul of flying drones over Pyongyang.
North Korea reportedly communicated its plans to fortify the border to U.S. forces stationed in South Korea to avoid misjudgments or accidental conflict. However, tensions remain high. South Korea has warned that any provocation from the North will be met with strong retaliation.
The destroyed roads and rail lines were part of inter-Korean cooperation projects initiated after a 2018 summit, aimed at improving connectivity between the two Koreas. South Korea had invested more than $132 million in these projects through loans to the North, which remains obligated to repay them.
This is not the first time North Korea has destroyed infrastructure tied to inter-Korean agreements. In 2020, North Korea demolished a joint liaison office after the collapse of nuclear talks with the United States.
North Korea’s actions have drawn international concern, with China urging both sides to avoid further escalation. South Korea has stated that it is prepared to defend itself and respond to any provocations as tensions continue to mount along the border.
Trump pitches making car loan interest tax deductible
Former President Donald Trump was doing more than just talking about the auto industry at the Detroit Economic Club on Thursday, Oct. 10. He made headlines when he said he supports making interest on car loans tax deductible.
Trump compared car loan interest to interest that Americans pay on their home mortgages. However, any change to the tax code would have to go through Congress. Republicans currently control the House, while Democrats have a slim majority in the Senate. That balance of power might change in the upcoming November election.
Auto loan rates are largely dependent on a car buyer’s credit score. The better your credit score, the lower your interest rate. A poor credit score can lead to a very high interest rate.
Trump’s remarks on eliminating taxes come after he made similar statements about getting rid of taxes on tips that workers make in the service industry. He has also advocated getting rid of the federal tax on Social Security benefits for seniors.
There are skeptics of his plans. Brian Riedl, a senior fellow at the Manhattan Institute, said Trump is just “throwing darts at the populist pandering dart board.”
The former president’s remarks come as the economy continues to be the number one issue for voters in many states. Vice President Kamala Harris recently unveiled her economic plan. She also indicated she wants to abolish taxes on tips.
Americans lose confidence college is worth it, skilled trades on the rise
As more Americans lose confidence that a college degree is actually worth it, a new study points to some potentially good news for the post-secondary schools. The number of high school graduates who chose to enroll in college held steady from 2022 to 2023, and both years were a big improvement over enrollment numbers during the COVID-19 pandemic in 2020 and 2021.
Still, four years after the pandemic began, there are 900,000 fewer undergraduate students enrolling in college. College costs continue to rise and not wanting to accrue student loan debt has many high schoolers looking at other plans for after they graduate.
A separate recent study found nearly half (49%) of high schoolers believe a high school diploma, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path. And even those planning on going to college believe on-the-job training and experience is more beneficial than getting a higher education degree, with 56% of them saying so.
A third study found a majority of those with student loan debt said their degree wasn’t worth it. While more than half (53%) said knowing they’d have to take on debt has stopped them from pursuing more education.
The Department of Labor says in the decade from 2012 to 2121, the number of registered apprentices jumped 64%. Just between 2022 and 2023 enrollment in vocational programs spiked 16%.
The Department of Education also found those who go to trade schools are more likely to find a job after going to school than those who take the traditional college route and are more likely to actually work in their field of study.
It’s also worth noting more and more Americans think two-year post-secondary schools are a better bang for your buck. In a recent Gallup survey, more than half (55%) said a degree from a two-year school is worth it while 18% believed the same thing about four-year colleges.
Navient banned from student loans, ordered to pay $120 million in settlement
In a settlement, Navient is permanently banned from servicing federal student loans and must pay $120 million in penalties and borrower relief. The Consumer Financial Protection Bureau (CFPB) accused Navient of steering struggling borrowers into costly forbearance options instead of income-driven repayment plans, mishandling payment processing, and harming the credit of disabled borrowers.
Navient allegedly enrolled 1.5 million borrowers in multiple consecutive forbearances, resulting in $4 billion in additional interest charges.
In a statement, Navient says it does not agree with the CFPB’s allegations. However, the company states, “This agreement puts these decade-old issues behind us.”
Under the settlement, Navient is banned from serving federal student loans. Navient will also pay a $20 million penalty and provide $100 million in relief to affected borrowers.
The CFPB said it will mail checks to eligible borrowers, and affected consumers will not need to do anything to obtain redress.
Xi Jinping commits $50 billion to boost Africa’s infrastructure development
Chinese President Xi Jinping has pledged more than $50 billion in financial support to Africa over the next three years, aiming to expand China’s economic influence and strengthen development partnerships across the continent. The announcement was made during the Forum on China-Africa Cooperation summit in Beijing on Thursday, Sept. 5, where leaders from more than 50 African nations gathered.
Xi outlined a broader commitment to modernizing Africa, promising $30 billion in credit lines, $10 billion in investments by Chinese companies, and other forms of assistance, including military aid. He emphasized that modernization is a right for all nations and criticized the Western approach for causing “immense suffering” in developing countries.
China’s deeper involvement in Africa is also part of a broader strategy to boost its standing in the global south.
The move comes as China continues to position itself as Africa’s largest trading partner, overtaking the U.S. in 2009. Last year, China approved nearly $5 billion in loans, the first increase since 2016, though concerns have been raised about the rising debt burden on African nations.
In contrast, the United States committed $55 billion to Africa in 2022, focusing on health, climate change, and women’s economic participation.
Since May, the Biden-Harris administration has signed 75 deals aimed at meeting its aid goal by 2025. U.S. initiatives emphasize public health, with significant investments in HIV/AIDS treatment, malaria prevention and COVID-19 response.
Xi’s latest pledge also signals a shift in China’s approach. Moving away from larger, debt-heavy infrastructure projects, he is focusing on smaller, targeted initiatives, which he described as “small and beautiful.”
These efforts will prioritize clean energy, industrial growth, and advanced technologies, addressing Africa’s energy shortages while promoting sustainable development.