Episode•September 2, 2022•22 min

Bonus Episode: Finance Friday Live 9/2/22 | Ep. 134

In this week's live, Tiffany covered the Bank of America announcement, the Sam's Club price increase, and an update on the Biden student loan forgiveness. You can join the live broadcast every Friday at Noon EST on Instagram, YouTube, Twitter, and Facebook. Use the links below to follow, like, or subscribe to get a notification on your favorite platform! Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht YouTube: Money Talk With Tiff This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Bank of America's new mortgage program mirrors the existing NACA program but is limited to five cities
Offers zero down payment and zero closing costs for Black and Hispanic first-time homebuyers
Available only in Charlotte, Dallas, Detroit, Los Angeles, and Miami initially
NACA program provides the same benefits nationwide through multiple lenders including Bank of America
2
Sam's Club membership fees increasing October 17th with partial offset via store credit
Club membership rising from $45 to $50 annually
Plus membership rising from $100 to $110 annually
Members receive $5-$10 in Sam's Cash shortly after renewal as compensation
3
Biden administration's student loan relief provides up to $20,000 forgiveness with income caps
$20,000 for Pell Grant recipients and $10,000 for non-Pell recipients
Individual income must be under $125,000 ($250,000 for married couples)
Repayment pause extended through December 31, 2022 as final extension
4
New income-driven repayment plan cuts undergraduate loan payments in half
Payments based on 5% of discretionary income instead of previous 10%
Applies only to undergraduate loans, not graduate loans
Payment plans can be changed if financial situation changes

Intro

Tiffany returns from travel to discuss major financial developments including Bank of America's mortgage announcement, Sam's Club price increases, and Biden's student loan forgiveness plan during her weekly Finance Friday Live broadcast.
Tiffany is the host of Money Talk With Tiff podcast, focusing on personal finance education and money management topics.

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– Opening and YouTube Milestone

Tiffany returns after a break from traveling and conferences, celebrating reaching 500 YouTube subscribers which unlocks the community tab feature.

I have reached 500 subscribers on YouTube, which I'm super excited about because now it opens up the community tab so I can make some posts on YouTube and things like that.

– Bank of America Mortgage Program Analysis

Bank of America announced zero down payment, zero closing costs mortgages for Black and Hispanic first-time homebuyers in five specific cities.

The program is essentially Bank of America's version of the existing NACA program, which offers identical benefits nationwide through multiple partner lenders.

Bank of America is pretty much taking the NACA program and doing their own version, their own flavor.

NACA requires homeownership classes and proof of rental history, and is available beyond the five cities targeted by Bank of America's program.

– Sam's Club Membership Price Increase

Starting October 17th, Sam's Club annual membership fees increase from $45 to $50 for club members and $100 to $110 for plus members.

We're giving back $5 in Sam's cash to club members and $10 in Sam's cash to plus members shortly after renewal.

Tiffany plans to maintain her membership due to frequent use and cheap gas prices despite the increase.

– Student Loan Forgiveness Details

President Biden announced a three-part plan including targeted debt relief, extended repayment pause, and reforms to make the system more manageable.

The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education.

Eligibility requires individual income under $125,000 or household income under $250,000 for married couples.

The pause on student loan repayment will be extended one final time through December 31st, 2022.

– Payment Plan Reforms and PSLF Updates

Monthly payments for undergraduate loans will be cut in half by calculating payments at 5% of discretionary income instead of 10%.

Public Service Loan Forgiveness (PSLF) improvements will give appropriate credit to borrowers who worked at nonprofits, military, or government positions.

More than 175,000 public servants have already had more than $10 billion in loan forgiveness approved.

Tiffany recommends checking whitehouse.gov for complete details rather than relying on news reports.

Resources

Topics

student loansmortgage programsBank of AmericaNACA program Sam's Club membership feesdebt forgivenessincome-driven repaymentPSLFpersonal finance