Saving investment – PSP Oste Fri, 17 Sep 2021 12:31:38 +0000 en-US hourly 1 Saving investment – PSP Oste 32 32 Kalyan Jewelers IPO opens today, but all that glitters is not gold Wed, 07 Apr 2021 23:17:08 +0000

Historically, jewelry stores, apart from a few, have not made money for investors in India, ”says Arun Kejriwal, founder of Kejriwal Research and Investment Services Pvt. Ltd.

In this regard, it is interesting to see the experience of Warburg Pincus, which made substantial investments in Kalyan Jewelers India Ltd. In October 2014, it invested ??1,200 crore in the company at a price per share of about ??59.6. It is now selling part of its stake in the Indian jeweler’s initial public offering (IPO), at a price of ??86-87 per share.

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Not glittering

The average compound yield is only 6.1%. The private equity firm lowered its average purchase price by investing another ??500 crore in mid 2017 at a lower price. Overall, however, her yields have been low so far. At the time of Warburg’s first investment in fiscal 2015, news reports indicated that Kalyan was aiming to achieve revenue worth ??10,000 crore that year and increase his income to ??25,000 crore over the next three years.

However, progress has been painfully slow. In fiscal year 2020, consolidated sales were ??10,100 crores. While the IPO market is hot right now and all issues fly, some analysts have lamented Kalyan Jeweler’s lack of revenue growth. During FY18-FY20, the company’s revenue decreased by 2% per year. The company attributes this to a weak 2019 fiscal year, when financial performance was affected due to flooding in southern India.

“Kalyan’s revenue performance is disappointing to say the least. Additionally, gold prices have increased significantly over time and this is not reflected in income at all. Additionally, it should be noted that jewelry retailer Titan Co. Ltd increased its revenue during this period, ”Kejriwal said. ??17 300 crore in FY20 from ??13,250 crores in FY18.

In addition, Kalyan Jewelers’ margins are much lower than those of its peers like Titan. Profit margin before interest and taxes (EBIT) was less than 6% in FY20. In comparison, Titan’s margin was around 11% in FY20.

Some analysts are also concerned about the company’s bottom line. “Contrary to the trend in the jewelry company industry to take out gold metal loans (rental gold), given their low cost and natural hedging, Kalyan is doing the opposite. We note that gold metal lending decreased by ??1,950 crore in fiscal year 18 to ??800 crore in 9MFY21. Net debt rose from ??1,100 crores to ??2,300 crore, while gross borrowings, including gold metal loans, are ??3,670 crores as in December 2020. Resorting to higher cost borrowing at interest rates of 3.5-11.8% shows weak balance sheet to provide collateral and deposits for metal loans- gold, ”Prabhudas Lilladher analysts said.

A thin silver lining is relatively lower ratings. While Titan is trading at 88 times FY20 earnings, Kalyan’s IPO is valued at 58 times FY20 earnings.

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Live well and eat well: meet around the table for family meals Wed, 07 Apr 2021 23:17:05 +0000

Over the past few months, we’ve found that our families are eating together at home more often, which has led to new meal routines. Whether you are sharing breakfast with the family sitting on your kitchen island or have cleared the dining room table to gather around her each evening, focus on maintaining those new routines, especially since many families are starting the slow but steady transition. during pre-summer school, work and activity schedules.

September is National Family Meal Month ™ and now is a great time to remember why family meals are so important to begin with. According to information from Food Industry Association (IMF), routine family meals at home can help increase feelings of well-being and self-esteem, foster stronger family relationships, reduce risky behaviors like smoking and drinking, improve academic performance and to increase the consumption of nutritious foods.

When deciding what to cook for meals, don’t be afraid to keep it simple. Reheat frozen ravioli with your favorite sauce then serve with fresh or canned vegetables and a glass of milk for a balanced meal. Or try one of these options to mix up your menu:

Noodles and chicken with Thai peanut sauce: Heat the olive oil in a large pan and brown the garlic, peppers and carrots. In a bowl, whisk together 1/3 cup of soy sauce, 1 tbsp of honey, ¼ cup of creamy peanut butter and 1 tsp of chili or sriracha sauce. Once the vegetables are cooked, add grated chicken, cooked linguini or rice noodles and peanut sauce to the pan. Garnish with chopped peanuts and green onions.

Deep dish quiche: Press the prepared pizza dough into a greased cast iron skillet, letting it drape around the sides. Beat a dozen eggs with cheddar cheese, spices and chopped vegetables like green peppers, onions and chives. Pour into prepared pan and bake at 450 degrees Fahrenheit for 20-25 minutes, until egg is cooked through.

Sautéed vegetables: When making stir-fries, replace the chicken or steak with firm tofu! It will have a similar texture and will be rich in protein. Be sure to add a variety of vegetables to your stir-fry, as well as a side of brown rice or quinoa.

Fish tacos: Fry tilapia, cod or shrimp with a little olive oil. Add paprika, cumin, chili powder, black pepper, lime juice, garlic and onion powder to taste. Once the fish is fully cooked, place it on the warmed tortillas. Add your favorite taco toppings and enjoy.

For additional resources, visit our Family dinners website section at for tips, recipes, articles and even a freebie or two. And don’t forget to Raise your mitt to engage ™ with us by committing to eat one more family meal at home each week.

Author’s Note: Andrea Luttrell is a Registered Dietitian-Nutritionist for Big Y’s Live Well, Eat Smart program. She was recently named a BusinessWest 40 Under Forty recipient. A nutritional question? Email him at or write Living Well at 2145 Roosevelt Ave, Springfield, MA 01102.

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Foundation Home Loans launches “Green Reward” remortgage for homeowners Wed, 07 Apr 2021 23:17:03 +0000

The specialist-only middleman lender said the five-year fixed rate mortgage for homeowner borrowers was only available for private rental sector properties that had an Energy Performance Certificate (EPC) of ‘C’ or higher – dated within the last 12 months, except for listed properties that are not eligible.

For those who qualify, Foundation offers a rate of 3.75% up to 75% LTV, with a £ 750 discount at the end plus a reduced fee of 0.75%.

The lender hopes the remortgage product will act as a catalyst to support the reduction of the carbon footprint of UK residential properties.

But he also hopes to publicize the various initiatives currently available to support this goal, such as the government’s “Green Homes Initiative” which is available to homeowners and offers grants to help them implement energy efficiency improvements to their properties.

The government initiative was recently extended for one year and is available until the end of March 2022.

All rental properties must currently have an EPC rating of “E” or higher, but the Foundation urges landlords to use the government program to upgrade the rating to “C” and above, in order to make the property eligible for. its Green Reward Mortgage Product.

The product is designed to reward homeowners who have paid to make improvements and the Foundation does not specify what energy efficiency requirements must be implemented in each home in order for them to achieve a “C” rating.

The Green Reward remortgage is also available on an “early remortgage” basis so that homeowners do not have to wait the usual six months before remortgage an improved property to the lender.

George Gee, Business Director of Foundation Home Loans, said: “This new ‘Green Reward’ mortgage exclusively for homeowner borrowers – one of the few available in the specialty mortgage market – was designed to support homeowners who have made choice with their properties.

“There has already been a real movement to increase EPC ratings for rental properties, but we want to reward homeowners who are still making progress.

“Once homeowners actively improve the energy efficiency of their properties, we will provide them with access to a product that offers a very competitive price, with reduced fees and a generous cash back that they can use to help. to offset the costs of the improvements.

“Homeowners can achieve a number of positive results here, using available government grants, improving their properties, creating more energy efficient homes, while potentially lowering their tenants’ energy bills. “

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Their house was destroyed by fire. An apartment broke down. Now their future is uncertain. Wed, 07 Apr 2021 23:17:00 +0000

STATEN ISLAND, NY – Devastating fire torn up a Midland Beach house last week, tearing down its walls and gobble up personal belongings of Michelle Rosario and her family.

The building was closed and Rosario’s family were left with no place to live.

Rosario, her husband, Randolph, her 19-year-old daughter, Lanena, and her 20-year-old son, Giovanni, were contacted by the Red Cross with temporary accommodation after the fire. They stayed at a Manhattan hotel for two days before being moved to the Hampton Inn on South Avenue to accommodate the family’s jobs, which are located on Staten Island.

But, on Tuesday, their temporary stay comes to an end, according to Rosario, and their next step is uncertain after she said an application for an apartment complex had been turned down.

“I thought I was going to move in on Tuesday,” Rosario said. “I wasn’t even thinking that far. And now, because it’s happening and they denied me … I don’t know.

A fire ravaged a house at 1150 Mason Avenue on Wednesday, March 31, 2021 (Staten Island Advance / Jan Somma-Hammel)

Rosario said her family had been shown an apartment and hoped she would be able to move in when she was forced to move out of her temporary accommodation.

But, they encountered an unexpected obstacle.

Due to the coronavirus pandemic (COVID-19), Rosario said his credit had been affected and his student loans were deferred. Although she and her husband both had jobs, she was required to provide a guarantor to sign for the apartment.

When her mother, who lives on a fixed income, acted as guarantor, Rosario learned that her family’s application for the apartment had been turned down.

Their house was destroyed by fire.  An apartment offer failed.  Now their future is uncertain.

Randolph Rosario, Lanena Rosario and Giovanni Rosario. (Photo courtesy of Michelle Rosario)

It is not known if and when the family’s former apartment in Midland Beach will be habitable, said Rosario, whose family had previously lost their home to Hurricane Sandy in Midland Beach in 2012.

“I don’t know when the house is going to be fixed,” Rosario said. “I don’t even know if, once the house is repaired, I will even be able to go back there. “

Hampton Inn management offered the family a room at a reduced rate, Rosario said, adding that they still couldn’t afford to stay in a hotel for an extended period.

In the aftermath of the fire, Rosario said his family received a wave of support and GoFundMe pages have been created to collect financial aid. “The community has been great,” she said.

But, concerned about where her family will sleep tomorrow, Rosario said she was focusing on finding a place where they could stay.

“We weren’t expecting a fire,” she said. “Financially, we didn’t even have money set aside for another rental.

Now, on the eve of the day they were hoping to move into an apartment, Rosario finds himself with more questions than answers.

“We only have one day,” she said.

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Ditch lending rules that favor polluters, ECB think tank says Wed, 07 Apr 2021 23:16:59 +0000

FRANKFURT: European Central Bank lending programs disproportionately favor polluters, argued the New Economics Foundation think tank on Tuesday (March 9), calling for new rules that benefit “green” businesses and punish energy-hungry companies.

With 1.8 trillion euros (US $ 2.1 trillion) in outstanding loans to banks, the ECB has become the largest source of funding for the euro area economy and its plan to continue to grow. its track record indicates an oversized role for years to come.

But the ECB tends to demand less collateral on carbon-intensive corporate assets, implicitly encouraging fossil fuel companies to tap bond markets, the think tank argued.

“The guarantee framework is not only at odds with the democratically defined goals of the Paris Agreement and the EU’s Green Deal, but it also actively supports failures in financial markets and strengthens the carbon lock-in,” said the group in a report.

Alternatives to the current framework include stricter pricing of guarantees for polluting companies to the exclusion of the assets of energy-intensive and fossil-fuel-intensive companies, the report argued.

The ECB, which is conducting a broad policy review, has recognized that markets are not pricing carbon-intensive assets properly and has vowed to play a bigger role in tackling climate change.

But policymakers disagree on the specific steps he should take and the options include a wide range of proposals ranging from forcing banks to make more climate-related disclosures to deflect asset purchases from polluters. .

“The principle of market neutrality is increasingly challenged on the grounds that it can reinforce market failures that slow down society’s transition to a carbon neutral economy,” Board member Isabel Schnabel said last week. administration of the ECB. “It is questionable whether the market is the appropriate benchmark.”

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Smithsonian Approves Dennos Museum Affiliate Status | New Wed, 07 Apr 2021 23:16:56 +0000

TRAVERSE CITY – Imagine what it would be like to see the Columbia capsule of the Apollo 11 Command Module in person.

Not a replica of the capsule – the The Neil Armstrong capsule came out and climbed a ladder that led to the surface of the moon.

How about Armstrong’s famous words 52 years after the astronaut crew landed?

“One small step for man, one giant leap for mankind. “

You wouldn’t be the first. Tourists frequent the Smithsonian National Air and Space Museum in Washington DC to do just that, which now houses the Apollo 11 capsule.

And, now the doors are open for the Dennos Museum in Traverse City to loan out national artifacts that most can only see in person on their way to the nation’s capital.

Northwestern Michigan College’s Dennos Museum Center has been approved for Smithsonian Affiliate status, joining 200 museums in the United States, Puerto Rico, and Panama.

In return for the offer of artifacts that could contribute to a collection at a Smithsonian museum in Washington, Smithsonian affiliated museums are permitted to request loans of artifacts and host traveling exhibits from those same museums.

This means that residents of Traverse City could one day get a first-hand glimpse of an artifact like Abraham Lincoln’s top hat, the 1903 Wright Flyer, the Hope Diamond, or the desk that Thomas Jefferson used for. write the declaration of independence.

All were organized by Smithsonian Museums.

It’s a two-way street, according to Craig Hadley, executive director of the Dennos Museum.

“They are also looking for partners who can power the Smithsonian system,” Hadley said. “So for us to be able to offer our Inuit collections as an opportunity to share with the Smithsonian – that’s appealing to them as well. “

The Inuit art collection at the Dennos Museum is one of the largest in the country, housing nearly 3,000 works of art. Approximately 1,600 are engravings and sculptures made by the Inuit of the Canadian Arctic, Greenland and Alaska.

Founded in the 1960s, Hadley is delighted to share the collection with the National Museum of the American Indian.

Those conversations are already happening, Hadley said.

“They’ve actually contacted us about a narwhal exhibit they’re putting together,” Hadley said. “They said, ‘Hey, you have a collection that’s definitely related to arctic wildlife, and we’d like to tell you more about the traveling shows that we’re repackaging.

“I think their conservation staff are immediately interested in contacting us and sharing ideas. “

There are only five other museums in the state of Michigan that hold Smithsonian Affiliate status, all located in the upstate. Affiliates of the Smithsonian are the Yankee Air Museum in Bellville; the Arab-American National Museum in Dearborn; the Michigan Science Center in Detroit; the Michigan State University Museum in East Lansing; and Air Zoo in Portage.

The Dennos Museum applied for affiliate status in March 2020, just as museums in the United States closed due to concerns over COVID-19. In December, Hadley said the Dennos Museum found out his application had been accepted.

He said the verification process was based on things like: What types of collections does the museum have? How far are affiliates located from each other?

Another part of the application process proved that the Dennos met museum standards for curatorial, collections maintenance, and galleries to borrow Smithsonian artifacts. It’s a process that could take up to a year with paperwork and loan fees, Hadley said, and likely won’t happen until at least 2022.

“We have a Hubble feed and all kinds of space related content in our kids gallery,” Hadley said. “One idea we had as staff was” would it make sense to maybe borrow something related to a space mission? Or the exploration of the moon? Where else in Traverse City would you get to see something like this?

For now, Hadley said residents of the TC area will be able to enjoy the digital artifacts through the Smithsonian channel.

“We can deliver Smithsonian film and media through the museum, whether it’s an in-person screening or we can broadcast content,” Hadley said. “This is something that we are excited to bring to members of the community.”

He stressed that the Dennos Museum is still open during the pandemic and will continue to open more, encouraging members to see the new programming it has to offer.

“We have two relatively new shows open,” Hadley said. “We have photographs by New York artist Dexter R. Jones, and then our inflatable contemporary art exhibit is exploding as well. “

The museum is open Sunday to Thursday from 11 a.m. to 4 p.m.

Admission for adults is $ 6, for children 17 and under it is $ 4, children 3 and under are free.

Membership opportunities are available starting at $ 50.

NMC students and teachers are free with ID.

“I think their conservation staff are immediately interested in
get in touch with us and bounce back some ideas. Craig Hadley, Executive Director of Dennos

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Milestones bring Toyota Alabama closer to engine production increase Wed, 07 Apr 2021 23:16:53 +0000


Once the expansion is completed in 2021, the plant will add 450 new jobs. Toyota’s investment in Alabama plant will reach a total investment of $ 1.2 billion, consolidating the Huntsville plant as the automaker’s largest engine production center in America North.

Toyota Alabama supplies engines for one-third of all Toyota vehicles assembled in the United States

The latest expansion is the plant’s fifth since engine production began in 2003. Annual engine capacity will increase 34% to 900,000, while total plant employment will exceed 1,800.

“Toyota has long been a mainstay of our burgeoning auto industry, with its Huntsville engine plant operating in an almost constant expansion mode since the start of production,” said Greg Canfield, secretary of the US Department of Commerce. ‘Alabama.

“Over the years, we have developed a special relationship with this world-class automaker and, working together, we will build a bright future right here in Alabama,” he added.


Meanwhile, Toyota is partnering with Mazda to build a $ 1.6 billion joint venture assembly plant a few miles to another location in Huntsville. Production, split equally between the partners, is expected to start in 2021.

Mazda Toyota Manufacturing, as the company is known, will employ 4,000 workers at full production.

The Alabama Department of Commerce and AIDT, the state’s leading workforce development agency, joined governments and organizations across the region in supporting the project, which was announced in January 2018.

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BNM reiterates view on more bad debts as payment aid unwinds Wed, 07 Apr 2021 23:16:51 +0000

KUALA LUMPUR (February 11): Bank Negara Malaysia (BNM) reiterated its view that bad loans will increase as payment assistance and relief measures are finally rolled back.

BNM Governor Datuk Nor Shamsiah Mohd Yunus told a press conference today that the underlying trends in loan write-downs have been to some extent obscured by loan aid – including moratoriums on loans that were extended by banks to borrowers during the pandemic.

The latest BNM data shows Malaysia’s bad loans topped a nine-year high in the fourth quarter of 2020 (4Q20).

Non-performing loans (NPLs) hit a nine-year high of R 28.7 billion at the end of 2020, according to the latest data from the BNM.

From 24.9 billion ringgit in September, total impaired loans rose to 25.7 billion ringgit in October, then to 27.8 billion ringgit and 28.7 billion ringgit in November and December respectively. The last time bad loans reached this level was in 2011.

The percentage ratio of net impaired loans to total net loans also increased in parallel during the period. From 0.84% ​​in September, the ratio rose to 0.87% in October, 0.95% in November and 0.99% in December.

That being said, non-performing loans will be tempered by improving growth prospects. In addition, the governor noted that sound lending standards practiced by banks in the past will also support asset quality.

She reiterated that the impact of the current movement control (MCO 2.0) will be less severe than the first MCO implemented in March 2020 and therefore any further impact from the higher impairments caused by MCO 2.0 should be manageable thanks to the strong buffers. banks.

“In 2020, we also saw banks preposition themselves against higher credit risks by setting up higher loan loss provisions, which increased by more than 40% from levels seen in 2019.

“We have seen many banks take provisions that they expect to take for loan losses in the future,” she observed.

Neither Shamsiah considered that in addition to the abundant liquidity of the banking system, banks are well placed to continue to lend to the economy. She added that the central bank will update its assessment of the credit risk outlook, which will be released alongside its next financial security review.

Read also:
Malaysia’s fourth quarter GDP contracts 3.4%, full year 5.6%
Government still has fiscal leeway to boost growth when needed, BNM says
M’sian economy on track for recovery in 2021, but BNM may revise growth forecast given new developments
According to BNM governor, it is wrong to think that the economy can only be revived by a general moratorium on loans
Last year’s aggressive takeover bid has reduced growth enough so far, BNM governor says

40 parties keen to apply for a digital banking license – BNM Governor

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IRS issues guidance on CARES law coronavirus distributions and loans Wed, 07 Apr 2021 23:16:47 +0000

When the CARES Act was enacted, we written about its provisions which affect pension plans and provide relief to plan sponsors and members. Recently, pursuant to Section 2202 of the CARES Act, the Internal Revenue Service issued Notice 2020-50 on Coronavirus-Related Distributions and Qualifying Pension Plan Loans. Advisory 2020-50 provides guidance to employers on several topics associated with coronavirus-related plan distributions and loans, including the following:

Additional Categories of “Qualified Persons” for Coronavirus-Related Plan Distributions and Lending Purposes

“Qualified persons” are persons eligible under the CARES Act to choose coronavirus-related distributions and loan plans. Opinion 2020-50 extends the definition of “qualified persons” to those who suffer adverse financial consequences as a result of:

  • the person with a pay cut (or self-employment income), a canceled job offer, or a delayed start date of employment due to COVID-19;
  • the spouse or household member of the person quarantined, on leave or laid off, or with reduced working hours due to COVID-19, being unable to work due to lack of on-call ” children due to COVID-19, having a reduction in pay (or self-employment income) due to COVID-19, or having a canceled job offer or a delayed start date due to COVID-19; Where
  • closing or reducing the hours of operation of a business owned or operated by the individual’s spouse.

A member of an individual’s household is a person who shares the individual’s primary residence.

A plan administrator’s use of certifications and a certification example

A plan administrator can rely on an individual’s certification that they meet the conditions for a qualified individual, unless the administrator has real knowledge to the contrary. The requirement of “real knowledge” does not oblige the administrator to verify whether the individual meets the qualified individual requirements. Instead, the “real knowledge” requirement is limited to circumstances where the administrator already has specific information to determine the reliability of a certification.

Notice 2020-50 provides an example of a notice that can be signed by a person claiming to meet the requirements of a Qualified Person.

Employer Safe Port for Plan Loans

The CARES law provides for a period of one year in the due date for the repayment of a plan loan by a qualified person if the payment of the loan is due between March 27, 2020 and December 31, 2020. The notice 2020-50 provides a safe harbor for qualified employers who suspend the due date of a qualified person’s loan. An employer will be considered to meet the requirements of Code § 72 if:

  • The Eligible Person’s obligation to repay an outstanding loan is suspended for any period beginning no earlier than March 27, 2020 and no later than December 31, 2020 (the “Suspension Period”).
  • Loan repayment must resume after the suspension period ends, and the loan term can be extended up to one year from the original loan maturity date.
  • Interest accrued during the suspension period should be added to the remaining principal of the loan. This requirement is met if the loan is amortized and repaid in substantially uniform installments over the remaining term of the loan (for example, five years from the date of the loan, plus up to one year).
  • If a qualifying employer plan suspends loan repayments during the suspension period, the suspension will not cause the loan to be deemed distributed even if, by reason only of the suspension, the loan term is extended beyond five years.

Qualified persons can designate a distribution as a coronavirus-related distribution

Notice 2020-50 explains that a qualified person is authorized to designate a distribution from a qualifying pension plan that does not exceed $ 100,000 and that is made on or after January 1, 2020 and before December 31, 2020 in as a coronavirus-related distribution the its tax return regardless of the fact that the plan treated the distribution as a coronavirus-related distribution. Likewise, a Qualified Person may designate a qualifying distribution as a coronavirus-related distribution even if the plan is not amended to provide for coronavirus-related distributions.

Employer decisions to change plans to include coronavirus-related distributions and loans

An employer can choose whether or not to modify their plan to provide for coronavirus-related distributions and loans. Advisory 2020-50 explains that, for example, an employer can choose to schedule distributions related to the coronavirus, but also choose not to change their plan’s loan provisions or loan repayment schedules. However, if a plan chooses to include distributions related to coronaviruses, it must be consistent in its treatment of similar distributions.

An employer may choose to treat a qualified person plan distribution as a coronavirus-related distribution. Nonetheless, as explained above, a qualified person could designate a distribution that meets the applicable requirements as a coronavirus-related distribution in their own tax return, even if a plan is not amended to provide for coronavirus-related distributions. .

Distribution limits on coronavirus-related distributions

The total amount of Distributions to a Qualified Person that are treated by an employer as Coronavirus Distributions under all of its pension plans cannot exceed $ 100,000. For the purposes of this rule, “employer” means the employer who maintains the plan and the employers who must be grouped with the employer. However, a plan is sure to meet this requirement if the total of a qualified person’s coronavirus-related distributions exceeds $ 100,000 including distributions from IRAs or other retirement plans maintained by unrelated employers.

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Student loans: will lawmakers help reduce the amount owed on federal loans? Wed, 07 Apr 2021 23:16:45 +0000

ALBANY, NY (NEWS10)– The moratorium on federal student loans expires on January 31, 2021. This means that payments will resume on federal student loans for millions of students and graduates in February 2021.

With severe financial hardship due to the coronavirus pandemic, are there other options for borrowers who are unable to meet their payments?

Andrew Pentis is senior editor at LendingTree, the parent company of Student loan hero, and one certified student loan counselor. He said there are other options and borrowers should not wait for the moratorium to be extended or for legislation to reduce or eliminate student loan debt to be passed.

Because student loan defaults can be devastating to a borrower’s credit, Pentis suggests they start weighing their options now by contacting their loan officer or another organization like Student Loan Hero that helps borrowers. decide which repayment options are best for them.

Usually the best repayment option is an income-based repayment plan, Pentis said. Deferral or forbearance are other options available, but students will still be responsible for paying accrued interest. There is also an unemployment exemption program offered by the Education Department that would allow a borrower to withhold payments for up to three years, Pentis said.

If borrowers are financially secure, putting extra money on the loan can greatly reduce the principal balance. While there’s not much time left until the moratorium on federal student loans expires, Pentis said now is a good time to continue making payments even if they are below the minimum payment due.

Pentis wanted to make borrowers understand that once the moratorium expires, borrowers who pay less than the minimum payment will be considered in default of their loan.

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