House Democrats Propose Misguided HSA Reforms

The Department of Education moved this week to counter a wave of online claims about how the federal government will classify nursing programs under new student loan limits taking effect next year.The guidance, released in a post titled "Myth vs. Fact: The Definition of Professional Degrees", attempts to clarify how the term “professional degree” will be used under President Trump’s One Big Beautiful Bill Act (OBBBA) and why certain nursing programs are not included in the category eligible for the highest borrowing cap.The answer, the agency insists, has little to do with whether nursing is considered "professional" and everything to do with how federal loan limits have ballooned over time.

House Democrats are moving to curb the benefits of Health Savings Accounts (HSAs), arguing that the popular tax-advantaged accounts increasingly double as investment vehicles for the wealthy rather than a way for families to pay medical bills.Rep. Lloyd Doggett, a longtime Texas Democrat and the ranking member on the House Ways and Means Health Subcommittee, has introduced the Health Savings Accounts (HSA) Consumer Protection Act.The bill arrives just as millions of Americans are facing some of the largest health care insurance premium increases ever. While HSAs are a great tool to invest and build wealth - their key benefit is to help families afford the high cost of healthcare in America.Democrats point to a new Government Accountability Office report (PDF File) and other analyses showing HSAs skew heavily toward higher-income, healthier, and disproportionately White and Asian account holders. They also highlight projections that HSAs will reduce federal tax revenues by roughly $180 billion over the next decade.But it's important to note that wealthier families opt towards HSAs because they have to - not by choice. These plans are typically the cheapest option in the face of ACA penalties. And this potential fix would punish everyone due to changes in qualifying expenses and reimbursement options. In short, this proposal is bad for everyone except the government. All it would do is increase taxes for Americans, while providing no benefit to those who are trying to pay for the excessive healthcare costs created by the current healthcare system. It's even bad for health insurance companies and HSA providers, who'll be subject to more record-keeping and potential taxes. It's actually pretty wild to see such a terrible bill proposed.

Giving a gift of stock is a fantastic way to help a child (or anyone) learn about the power of investing to build wealth. Plus, there are some really fun ways to gift - such as a framed stock certificate.When you ask a parent what their kids want for Christmas, they’ll likely start with a long sigh followed by, “Well… She really likes K-Pop Demon Hunters and Dress Up.”If you press further, you’ll find out that the parent is overwhelmed by the toys that the kid has, and they really aren’t all that excited about giving more plastic crap to their kid.Enter, the gift of stock and investments. Giving a share of stock to kids is a fantastic way to avoid stressing out parents, help prepare a kid for their financial future, and teach a few lessons along the way.Plus, as a millennial family, I'm personally tired of receiving all this junk. Think about it. Your child might receive upwards of 20 gifts every holiday season (Mom, Dad, Siblings, Grandparents, Santa, etc.). But by the middle of January, what they actually play with is down to 1-2 toys.So, instead of wasting all that money on gifts (and then having a bunch of junk lying around the house), why not use that same money to invest in your child's future. This is a great option for extended family who may want to gift.If that's you, then these are the best ways to give a share of stock to a kid, gifting investments, and even teaching them financial literacy topics in a fun way!

The student loan debt tax bomb can happen when you have to pay taxes on the student loan forgiveness you received. However, most people will avoid the tax bomb due to a tax process called insolvency. While some student loan forgiveness programs, like Public Service Loan Forgiveness (PSLF) are tax-free, others - like when you get your student loans discharged under Income-Based Repayment, are potentially taxable. However, there's one big exception - insolvency. Insolvency is a tax situation when your liabilities (such as forgiven student loan debt) exceed your assets (like the money in your savings account). If you are technically insolvent, you may avoid some or all of the taxes associated with your loan forgiveness.That is a big win for borrowers getting their loans forgiven under IBR, PAYE, or ICR. Let's break down what that looks like. 

When families talk about the rising cost of college, tuition tends to dominate the conversation. But for many students, tuition isn't the largest expense. Room and board, which covers housing and meals, often makes up the majority of the bill.Even at the most expensive colleges ranked by tuition, room and board adds a significant price.Recent data show that at public four-year colleges, room and board now accounts for about 45% of total expenses, while tuition makes up less than 36%. At San Diego State University (SDSU), a popular in-state option, tuition is only 25% of the total cost of attendance if you include on-campus living. Room and board, meanwhile, makes up more than 62%.Let's look at some raw numbers using SDSU as an example:In-State Tuition: $9,180Out-of-State Tuition: $13,320Room and Board: $23,736It's also important to note that SDSU requires students not in the service area to live on campus for two years. That can really add up!That gap raises a tough question: Is living on campus worth the price, even more so if you're going into debt?

More than one in three students who enroll in college never complete their degree. That figure is not just a statistic - it represents millions of families who invest time, money, and hope into higher education, only to see it fall short of its promise.Only 62% of students who start college earn a degree within 6 years, according to data from the National Student Clearinghouse. That number has held relatively steady, and reminds families of a truth: one in three students don't finish.As college costs continue to rise, this is an important aspect to plan for. With student loan borrowing rising, the students who struggle the most to repay their debt are the ones that never graduated.Here's why 38% of students never finish college, and ways that you might be able to protect yourself.

California families have more tools than ever to save, invest, and build long-term financial security but many people don’t know these programs exist or how to use them. In this episode, Robert Farrington sits down with California State Treasurer Fiona Ma and Thomas Martin, Executive Director of CalABLE, for a candid, wide-ranging conversation about college savings, disability savings, and the mission to make financial empowerment accessible to every household.Treasurer Ma shares how her career (from licensed CPA to Assembly Speaker pro Tempore to her current role as Treasurer) has shaped her push to expand economic opportunity. She breaks down what the Treasurer’s office actually does and why the programs it oversees matter for everyday Californians.From ScholarShare 529, to CalKIDS, to CalABLE, this episode covers how these programs work, who they help, why participation matters, and what changes might be coming. Treasurer Ma also talks about ongoing efforts to introduce tax incentives for 529 contributions, her personal ethos on saving and investing, and the role early savings can play in shaping a child’s educational path.Thomas Martin joins the conversation to explain CalABLE, a program designed to help people with disabilities save money without jeopardizing important benefits. He shares how CalABLE works, how accounts can support both college and independent living, and how CalABLE and 529 plans can complement one another.The episode wraps with personal stories and practical advice — including money habits, favorite financial tools, and a myth the Treasurer wishes every Californian would leave behind.

The Trump administration has escalated its campaign to defund the Consumer Financial Protection Bureau - setting in motion what could be its effective closure within a year.In a court filing (PDF File) this week, the administration said the CFPB cannot seek additional money from the Federal Reserve - its usual source of operating funds. The bureau said it has enough reserves to continue through December but “anticipates exhausting its currently available funds in early 2026.” Without congressional action, that timeline would mark the end of the CFPB’s ability to function.The Justice Department’s Office of Legal Counsel (OLC) issued the legal opinion underpinning the decision. The OLC argued that under the Dodd-Frank Act, the CFPB can only receive funds from the “combined earnings of the Federal Reserve System.” Because the Fed has posted losses since 2022 (about $77.6 billion last year) the administration contends there are no “earnings” to transfer.“The Federal Reserve currently lacks combined earnings from which the CFPB can draw,” the opinion stated. If the Federal Reserve has no profits, it cannot transfer money to the CFPB.That interpretation redefines “combined earnings” to mean net profits rather than total income, a reading that may be up to interpretation. The Supreme Court upheld the CFPB’s funding structure as constitutional in 2024, without adopting that definition. What happens next is yet to be seen.

For nearly two decades, the Public Service Loan Forgiveness Program has offered a straightforward promise: make 120 qualifying payments while working full-time for a government agency or a 501(c)(3) nonprofit, and any remaining federal student loan balance will be forgiven. The idea helped schools, hospitals, local governments, and nonprofits recruit workers who might otherwise avoid lower-paying public-service roles.That certainty shifted when the Education Department finalized a regulation allowing the Secretary to declare an employer ineligible if it “has a substantial illegal purpose.” Though the Department says the rule targets organizations that knowingly engage in conduct that violates federal or state law, the standard is broad, unclear, and open to interpretation.The rule is currently scheduled to take effect July 1, 2026. Borrowers don't have anything they can do to prepare - except to watch and wait...

The Trump Administration continues its efforts to hollow out the U.S. Department of Education by sending six programs to other federal agencies. The U.S. Department of Education announced the changes in a press conference on Tuesday, November 18, 2025. Although federal law assigns responsibility for these programs to the U.S. Department of Education, U.S. Secretary of Education Linda McMahon is making an end-run around the law by entering into contracts with the other federal agencies to operate the programs under U.S. Department of Education oversight.These interagency agreements (IAAs) send the six program to the following four agencies:U.S. Department of Labor (DOL): Elementary and Secondary Education Partnership and Postsecondary Education Partnership. DOL will be responsible for grants relating to Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutes (MSIs), as well as grants focused on improving student success for college studentsU.S. Department of the Interior (DOI): Indian Education PartnershipU.S. Department of Health and Human Services (HHS): Foreign Medical Accreditation Partnership and Child Care Access Means Parents in School (CCAMPIS)U.S. Department of State (DOS): International Education and Foreign Language Studies Partnership, including programs administered under the Fulbright-Hays grantU.S. Department of Education staff who manage these programs will be transferred to the four federal agencies. The agreements were signed on September 30, 2025, but not announced until now. It will take several months to transfer the programs to the other federal agencies.