Student loans could become more prominent in paying for college if the United States Department of Education closes. Incoming-President Donald Trump promised to abolish the Education Department if elected, but federal student loan balances are unlikely to disappear. However, even if federal loans remain part of the higher education landscape, changes to the federal student loan program and the options available could lead to borrowers turning to private student loans in greater numbers.

Key Takeaways

• If President Trump fulfills his campaign promise to abolish the Department of Education, payments will likely be managed by other government agencies.
• Any new efforts for blanket student loan forgiveness are unlikely to emerge under the new administration.
• Changes to federal student loan borrowing and repayment options could lead to more families using private student loans to fund a higher education.

Trump’s Plan for the Education Department

While on the campaign trail, Trump repeatedly called for the end of the Department of Education. If congressional support emerges to shutter the department, trillions of dollars in federal student debt would still need to be managed. Trump has previously advocated for merging the Education Department with the U.S. Department of Labor.

Additionally, Trump would presumably sign the College Cost Reduction Act, an overhaul of several aspects of the federal student loan program. Introduced by House Representative Virginia Foxx (R-NC), this legislation proposes getting rid of PLUS loans and replacing the existing income-driven repayment (IDR) plans with a new “repayment assistance plan.” Under this new IDR plan, borrowers would qualify for forgiveness after paying an amount equal to the “principal and interest owed under the standard 10-year plan.”

Important

The Biden administration’s Saving on a Valuable Education (SAVE) plan is currently on hold due to several court actions. Borrowers enrolled in the plan have been placed in an interest-free forbearance until the matter is resolved.

Private vs. Federal Student Loans 

Private student loans only accounted for about 7.61% of outstanding student debts, or $133.43 billion, in March 2024. Meanwhile, as of Q4’24, there’s approximately $1.64 trillion in outstanding federal student debt.

Federal and private student loans both have advantages and disadvantages, so each type can work well for different students (depending on their needs).

Federal Student Loans

• No credit requirements for undergraduate loans

• Relatively low borrowing limits, which might not cover the full cost of attendance

• Fixed interest rate set by congressional formula and the same for each loan type

• Variety of IDR plans and hardship options

• No possibility of securing lower interest rates or avoiding origination fees

Private Student Loans

• Credit inquiries required for all loans, including undergraduate

• Ability to borrow sufficient funds to cover the entire cost of attendance

• Fixed and variable rates determined by lender, market conditions, and/or borrower’s

• Hardship options vary by lender

• Some loans come without origination fees, and well-qualified borrowers could get lower interest rates

^{Source: Federal Student Aid}

Generally, it’s best to start with federal student loans due to their fixed rates, lack of credit requirements, and multiple repayment options (including potential student debt forgiveness). However, private loans can be a good option if you still need to cover a funding gap after maxing out your federal student aid package. However, this dynamic could change if the Education Department disappears.

Even if the Department of Education remains intact, private loans could become a bigger part of the college funding picture should the College Cost Reduction Act become law. The proposed changes to federal student loans, including replacing IDR plans and eliminating PLUS loans, would limit the options available to borrowers, which may encourage more of them to take out private student loans.

The Bottom Line

Without the Department of Education, Federal loans may become less appealing to borrowers. While not necessarily likely, it’s possible federal government will stop originating new student loans altogether, leaving borrowers little choice but to turn to private lenders. Nothing has been decided yet, so borrowers—existing and new—must wait to see how the Trump administration deals with student debt.

Over the last few years, Texas has not only emerged as a popular tourist spot and hub for major American businesses but also a desirable retirement destination. If you’re nearing that time in your life, you may be curious if making the move to Texas is a financially smart move for you. 

Here’s what you need to know about living in Texas as a retiree on a fixed income. 

Key Takeaways

• Texas is one of the top destinations in the nation for new retirees.
• One of the key attractions to the state is its significant tax benefits for retirees, including no state income tax.
• The cost of living in Texas is generally lower compared to many other states.
• Texas has many diverse cities and communities with vastly different characteristics, so be sure to look closely at any areas you’re considering.

The Appeal of Retiring in Texas

From its warm climate, diverse cultural offerings, and scenic environments to its pension-friendly status, there’s a reason why Texas is experiencing an influx of retirees. In fact, Texas was the fourth most popular state for net migration among people over age 60 in 2022, according to a study released in 2024.

Take a look at some of the appealing aspects of the Lonestar State, and why its highly affordable status might put it on your short list of retirement destinations.

1. Lower Cost of Living  

Cost of living can vary widely in a big state like Texas since it’s made up of large metro areas (some more affluent than others) and lots of suburbs and small towns. But overall, it’s fair to say that Texas is a less expensive place to live than many other states in the nation.

According to 2023 numbers from the Bureau of Economic Analysis, the average personal consumption expenditures per capita in Texas was $52,229, which was lower than the national average of $56,202. For comparison purposes, California’s was $64,835 and Florida’s was $60,204.

Note

Texas’ food costs, housing, health care, and utility costs all fall below the national average for spending in those categories, which means those retirement paychecks can go further there. 

When you drill down into specific places in Texas, you can also find some of the most affordable places to live in the nation. For example, in Kiplinger’s “Cheapest U.S. Cities To Live: U.S. Cities Edition” 2024 survey (based on government cost of living data), three Texas cities broke the top five (Edinburg, Harlingen, and Amarillo), and McAllen appeared lower down at No. 14.

2. Below Average Housing Costs

Housing costs in Texas are also lower than national averages. The average Texas home value in 2024 was $299,467, lower than the $357,469 average home value nationally. Renters can also find more affordable housing as the average rent in Texas was $1,255 per month, below the nationwide average of $1,560 (as of December 2024).

3. Favorable Tax Rates

Texas is one of just seven states with no individual income tax—and that’s a big deal for people living on a retirement budget. No income tax states like Texas are sometimes referred to as “pension friendly,” and tend to be popular with retirees. This is because residents don’t have to pay any taxes on their pensions, Social Security benefits, or distributions from IRAs or 401(k)s. This effectively gives you a bigger budget to work with.

State and local sales tax is also on the lower side in Texas. At 8.2%, the rate ranks 14th in the nation. For comparison, Oklahoma has an 8.989% state and local sales tax rate while Arkansas has a 9.448% combined rate. Also good news for retirees: Groceries, prescription drugs, and over-the-counter medicine are not subject to sales tax in Texas.

Potential Drawbacks

Despite all of the positive aspects of retiring in Texas, there are a few cons to consider as well.  

1. Natural Disaster Risks

Texas weather can be dramatically different depending on which part of the state you live. But more concerning is that Texas residents face the potential for extreme weather events from hurricanes to droughts and wildfires. The state’s cumulative cost of natural disasters reached over $400 billion from 1980 to 2023, the highest in the nation.

You may need to purchase extra insurance on your home if you live in Texas. Having a strong emergency fund is also crucial should you need to cover out-of-pocket expenses or evacuate for a period of time. 

2. Health Care Costs and Quality

One area where Texas falls short for seniors is with its health care system. Texas was ranked No. 38 for health in America’s Health Rankings 2024 Senior Report, based on social and economic factors, physical environment, behaviors, clinical care, and health outcomes.

Coverage-wise, Texas residents have both Medicare Advantage and Medicare Supplement plan options, however. Not every state offers both, so this is a plus. The average monthly Medicare Advantage plan premium in Texas for 2025 is $6.81, which is below the $17.97 per month average nationally.

3. Transportation and Accessibility Challenges

As the second most populous state, Texas has some transportation challenges since highway and road upgrades haven’t kept pace with the increasing number of drivers over the decades. State residents lose an average of 54 hours a year sitting in traffic. In addition, the Aging Texas Well Advisory Committee acknowledges that more needs to be done to accommodate people 65 and older who need public transportation services.

Again, access to transportation options may vary by locality. Metro areas tend to offer more public transportation, while some smaller suburbs can be more walkable or have better bicycle paths. Also worth exploring: If an area has volunteer driver programs that help seniors get to and from appointments. 

4. Higher Property Taxes

Although Texas is tax-friendly when it comes to income, it has higher property taxes than many areas. At 1.47%, Texas ranks seventh for property taxes paid as a percentage of owner-occupied housing value. 

The Bottom Line

Texas’ no-income-tax policy alone may put the state on your shortlist for retirement. It also has a lower average cost of living than many other places in the nation, so if you’re coming from a higher-cost area such as California or the Northeast, you will likely come out ahead financially.

That said, everything is bigger in Texas, including the number of options you have in terms of where to live. Compare lifestyle and cost of living carefully whether you choose to live in a city like Houston or Austin versus a small town like Fredericksburg. 

To help with the financial aspects of your decision, consider seeking counsel from a financial advisor who can help you make an informed decision that will fit your retirement finances.

Reviewed by Charles Potters

Australia might not be on people’s radar as a hotbed of entrepreneurial activity. In the past, the country has been accused of lacking innovation and encouraging a risk-averse mentality.

Nonetheless, a handful of entrepreneurs from Australia have overcome those barriers. In recent years, the Land Down Under has produced some great minds including Canva founders Melanie Perkins and Cliff Obrecht, AfterPay creator Nick Molnar, and Atlassian’s Mike Cannon-Brookes and Scott Farquhar. It’s also where John Ilhan, Rupert Murdoch, and Katie Page, arguably the most well-known Australian entrepreneurs, are from.

Key Takeaways

• Australia has been criticized for not being very entrepreneurial, although many innovative minds come from there.
• Three names that stand out are John Ilhan, Rupert Murdoch, and Katie Page.
• Ihan is best known as the founder of Crazy John’s, which went on to become the largest independent phone retailer in Australia.
• Murdoch built a media empire that includes Fox Television, 20th Century Fox, the Wall Street Journal, HarperCollins, Sky, the Sun, the Times, and the New York Post.
• Page helped turn Harvey Norman into a worldwide retailer generating billions in revenue.

John Ilhan

John Ilhan is best known as the founder of Crazy John’s, which went on to become the largest independent phone retailer in Australia, and for once being named the richest Australian under 40.

Ilhan was born in Yozgat, Turkey, on Jan. 23, 1965, and later migrated with his family from Turkey to Australia at the age of 5. He grew up in Broadmeadows, a working-class section in the northwestern part of Melbourne, was said to be a big fan of sports, playing on the football, basketball, and soccer teams, and rarely saw his parents because they were working so much.

During his childhood, Ilhan’s entrepreneurial spirit began emerging. At one point, he started selling a newspaper on the street corner, then sold the business to a friend for a nice profit. Later, he went to university to study art but quit and ended up working on the same Ford production line as his parents.

In 2011, a biography of John Ilhan, titled John Ilhan: A Crazy Life, was published.

Ilhan moved into sales at Ford, then landed a job selling cell phones. There he unearthed a talent, topping sales records for three years, which eventually, alongside a dispute over pay, prompted him to open his own store across the road with just 700 Australian dollars and a loan from his parents in 1991.

The first few years were tough but Illhan’s hard work eventually paid off. Through expansion, Ilhan’s one store, Crazy John’s, became a retail chain of 120 stores that eventually developed into Australia’s largest Telstra mobile dealership. By 2003, he was named the richest man in Australia under 40.

Sadly, IIhan didn’t get to see through his plans to expand overseas. In 2007, at the age of 42, IIhan, who was also well known for his generosity and philanthropy, died of a heart attack. At the time of his death, he was estimated to be worth over 300 million Australian dollars.

Rupert Murdoch

Rupert Murdoch, born Keith Rupert Murdoch in March 1931, is one of the world’s most prolific business magnates. An Australian-American, Rupert was born in Melbourne, Australia, to Sir Keith Arthur and Elisabeth Murdoch. In 1952, at the age of 21, his father suddenly passed away, leading him to inherit Australia’s News Limited and become the managing director of the media company.

Throughout the 1950s and 1960s, Murdoch acquired a variety of newspapers based in Australia and New Zealand. In 1969, he was able to expand into the United Kingdom, where he took control of News of the World and, later, the Sun. In 1981, he acquired the Times.

Rupert Murdoch began to truly fulfill his potential for generating tremendous financial gains when he started using his entrepreneurial talents in the United States. He expanded into the U.S. market in the 1970s, funded by his substantial interests in the United Kingdom and Australia, acquiring the distressed San Antonio Express-News in 1973 and creating Star magazine, a supermarket tabloid, in 1974. Two years later, he bought the New York Post.

Note

Murdoch became a naturalized U.S. citizen in 1985, specifically to meet the legal stipulations required for U.S. television station ownership. To do so, he had to give up his Australian citizenship.

In 1985, Murdoch made acquisitions that eventually changed the landscape of U.S. television news, first by purchasing a controlling interest in 20th Century Fox, and subsequently by buying half a dozen U.S. television stations. These moves formed the foundation for the creation of the Fox Television Network and the Fox News Channel, which launched in 1996 and within five years became the number-one rated cable news network.

Murdoch’s global media holding company, News Corporation, continued to grow with the 198 acquisition of Harper & Row (later to be rebranded as HarperCollins), the founding of Sky television in Britain in 1988, and the 2007 acquisition of the Wall Street Journal.

In 2012, Murdoch split his newspaper and entertainment business into two separate entities: News Corp and 20th Century Fox. Disney later acquired the majority of the latter, with the remaining broadcast business now known as Fox Corp.

As of Jan. 10, 2025, News Corp has a market capitalization of $15.94 billion while Fox Corp has a market capitalization of $21.43 billion.

Katie Page

Katie Page is the chief executive of Harvey Norman, a large department store established by her husband, Gerry Harvey and Ian Norman, in 1982. Today, there are more than 270 Harvey Norman stores spread across the globe from Ireland to Singapore.

Page was born in 1956 in Mareeba, a town in North Queensland, Australia. Her father encouraged her to read the business sections of the newspapers and she went to a school where women were told they could do anything.

After school, Page moved to Sydney and began working with Gerry Norman. Together, they turned a one-store operation into a multinational retail chain generating billions of dollars in revenue. In sixteen years, Page went from an assistant to CEO. She has been credited with overseeing Harvey Norman’s massive expansion, including overseas, and keeping it relevant in the internet era.

Page’s company trades on the Australian Stock Exchange, or ASX, and is one of the component stocks of the ASX 200 Index. She was one of the first women to hold a top-level executive position at an ASX 200 company and is currently the 18th richest woman in Australia with a net worth of 1.6 billion Australian dollars.

Who Are the Five Richest People in Australia?

According to Forbes, the richest people in Australia are:

1. Gina Rinehart
2. Andrew Forrest and family
3. Harry Triguboff
4. Mike Cannon-Brookes
5. Scott Farquhar

How Many Billionaires Are There in Australia?

There are 159 billionaires in Australia in 2024, according to the Australian.

Who Is the Richest Entrepreneur?

Elon Musk, who is widely known for leading the way in electric vehicles and space travel, is the richest person in the world.

The Bottom Line

Australia has produced many entrepreneurs over the years, some of the highest profile of whom are Rupert Murdoch, Katie Page, and John Ilhan. These three figures led the way for others to follow and each offers fascinating stories characterized by lots of ambition, great ideas, hard work, and determination.

With no minimum deposit requirements and high interest rates, Barclays is a contender for the best CDs today

Fact checked by Michael Rosenston

Barclays is a 300-year-old British bank trying to stay globally relevant in modern times, and its CDs are a good-faith effort to that effect. Barclays Bank CD rates are good, and many people will appreciate its simple, straightforward options. 

Barclays Bank offers several terms for its online CDs in the United States market with rates up to 4.10% APY, which is competitive with many of the best CD rates.

Barclays Online CD Overview

Compare Barclay Bank Rates

Barclay Bank offers some CDs with competitive interest rates, but you may be able to find even higher returns on CDs by shopping around and comparing terms.

Barclays Bank CDs: Key Features

There is no minimum deposit required to open a Barclays CD. 

Use a CD interest calculator to check how much total interest you’d earn with one of Barclays Bank CD rates, based on the deposit amount you wish to make. 

Pros and Cons of Barclay Bank CDs

Pros

• Fairly competitive rates

• No minimum deposit requirement

Cons

• May find higher rates elsewhere

• Early withdrawal penalty

Pros Explained

• Fairly competitive rates: Some of Barclay Bank CDs offer high interest rates compared to other CDs.
• No minimum deposit requirement: Unlike many CDs, you don’t have a minimum deposit requirement with Barclay Bank CDs.

Cons Explained

• May find higher rates elsewhere: By shopping around, you may be able to find better interest rates and get higher returns for your investment.
• Early withdrawal penalty: Like many CDs, Barclay CDs have an early withdrawal penalty.

Important

Some people prefer opening CDs and savings accounts at other banks because it “hides” the account from themselves, making it easier to avoid the temptation to withdraw the money early. 

Alternatives to Barclay Bank CDs

• Other high-interest CDs: Many of Barclay Bank CDs offer competitive interest rates. Check the best CD rates currently available before making a deposit.
• High-yield savings account: If you want to protect your funds while also earning interest, you can also consider a high-yield savings account.
• Checking account: A checking account is another option for storing your cash, especially if you don’t want to be subject to withdrawal limits. Some high-interest checking accounts can provide more returns on your cash than traditional checking accounts.
• Money market account: Money market accounts are similar to savings accounts, though they may also come with check-writing abilities and a debit card. You can often earn a good rate on your savings, but you might have to deal with monthly fees or minimum balance requirements. 
• I bonds: I bonds from the U.S. government are an investment option for protecting your savings from inflation. I bonds may or may not offer a higher rate than the best CDs. When you invest, you have to commit to leaving your money in the I bond for at least a year.

Frequently Asked Questions (FAQs)

Is a Barclays CD Worth It?

Yes, a Barclays CD is a very good option if you’re looking to earn competitive rates and if you don’t mind opening a CD account at a new bank. For more CDs with high APYs, see the best CD rates currently available today.

Does Barclays Have a Minimum Deposit for CD Accounts?

No, Barclays doesn’t have a minimum deposit for its CD. But Barclays does require that you deposit enough to earn at least $0.01 in interest each month—otherwise, the bank won’t post any interest at all to your account and it’ll be stuck in an interest-free limbo until it matures.

What Is the Best Term Length for Barclays CDs?

Barclays Bank CD rates are currently the highest for its 1-year term. Normally rates are higher on the longest-term CDs. But given the strange high-interest-rate environment we’re currently in, many banks have reversed that pattern, likely so they’re not stuck paying ultra-high rates when they go back down in the future.

Are Barclays CD Accounts FDIC-Insured?

Yes, Barclays CDs are FDIC-insured. Just remember to keep your total deposits with Barclays under $250,000, which is the limit of FDIC insurance for all of your deposits at any particular bank. 

Your Guide to CDs

• What Is a Certificate of Deposit (CD)?
• What Is a Brokered CD?
• What Is a CD Ladder?
• Pros and Cons of CDs
• How to Invest With CDs
• How to Open a CD
• How to Close a CD
• CDs vs. Annuities
• CDs vs. Stocks
• CDs vs. Mutual Funds
• CDs vs. ETFs
• CDs vs. Savings Accounts
• Short-Term vs. Long-Term CDs
• CD Rates News
• Best 1-Year CD Rates
• Best 18-Month CDs
• Best Jumbo CD Rates
• Best 6-Month CD Rates
• Best 3-Month CD Rates
• Best Bank CD Rates

We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation.

Reviewed by Andy Smith

Mutual Funds vs. Systematic Investment Plans (SIPs): An Overview

Mutual funds are often described as a basket of stocks or bonds managed by a professional with shares of the portfolio made available for purchase by investors. At the end of each trading day, all the fund’s holdings are priced and the fund’s net asset value is calculated. Purchases of mutual funds can be made with lump-sum investments or through a systematic investment plan (SIP). While a mutual fund is an investment product, a SIP is an investment plan that involves mutual funds.

Key Takeaways

• A systematic investment plan involves investing a consistent sum of money regularly, and usually into the same security, which could be a mutual fund or funds.
• A SIP generally pulls automatic withdrawals from the funding account and may require extended commitments from the investor.
• SIPs operate on the principle of dollar-cost averaging, buying more shares when prices dip.
• Most mutual fund companies offer SIPs.

Mutual Fund

Mutual funds are investment vehicles that pool money from many investors and then put that money to use following a stated strategy. They allow investors to get professional money management across a range of strategies and investment styles.

For example, one mutual fund may generate extra returns by identifying under-valued small-cap stocks with high growth potential by undertaking in-depth research while another mutual fund may passively replicate the S&P 500 index.

Investors should understand the costs associated with mutual funds. Fees are based on the type of mutual fund, investment strategy, and/or the managing company. For instance, funds may come with expense ratios, sales charges, maintenance fees, and redemption fees. some funds may also have minimum investment requirements, which means there may be high barriers to entry.

Funds may be actively or passively managed, where:

• Active funds take a hands-on approach. These try to beat the stock market or underlying index and are regularly rebalanced.
• Passive funds take a back-seat approach to investing. They try to replicate the returns of the underlying index.

Investors can choose from different types of mutual funds, including stock funds, bond funds, index funds, and money market funds to name a few. These categories can be further divided to give investors even more options, such as large-cap or blue-chip stock funds.

Important

Make sure you understand the risks involved with any investment you’re considering before you dive in. Doing your due diligence and research will help you minimize your losses.

Systematic Investment Plan (SIP)

A systematic investment plan is an investment plan where investors make regular, equal payments into a mutual fund, trading account, or retirement account such as a 401(k). You might set up a SIP to buy $100 per month worth of Mutual Fund A. The order is executed each month on the specified date. This way of investing offers two key advantages: easy saving and buying shares consistently even when the markets are down, which enables better prices on average.

Setting up a SIP makes it easier to budget for retirement and other investment goals. When you work a small amount into a monthly budget, it becomes more likely that you stick with the plan, making it easier to achieve your investment goals. For example, it is relatively easy to commit to investing $100 per month for retirement savings, but coming up with $1,200 at one time may be more difficult.

Making regular mutual fund share purchases lets you reduce the average cost per share. Market fluctuations over time are likely to present opportunities where shares are purchased at a lower price. This technique, called dollar-cost averaging, is a widely used strategy by many investors and is recommended by financial advisors

Advisor Insight

Dan Stewart, CFA®
Revere Asset Management, Dallas, TX

A systematic investment plan, or SIP, simply means making periodic and scheduled contributions to your investment account or a specific security. Dollar-cost averaging is a SIP in its simplest form.

For example, investing $500 per month total in two different mutual funds of $250 each would be a SIP. But a SIP is not an investment strategy like a mutual fund. A mutual fund is a professionally managed fund in which the manager invests according to the fund’s prospectus.

While the SIP is a great way to invest when growing your assets, once you accumulate a decent amount of wealth and are, say, nearing retirement, you may want to consider some type of defensive strategy that involves more active management.

Do I Pay a Fee If I Cash in my Mutual Fund Shares?

This depends on the mutual fund. You may have to pay a fee if you decide to cash in your mutual fund shares. This fee is called a redemption fee or an exit fee/load. If you don’t want to pay a fee, consider looking for no-load funds. These mutual funds won’t charge you for selling your shares.

What Types of Investments Can Be Used in a SIP?

Systemic investment plans can be used to invest in different types of assets. These include mutual funds and exchange-traded (ETFs). SIPs can also be used as investment vehicles for certain retirement plans, such as 401(k)s.

Are There Any Fees Associated with SIPs?

There may be fees associated with SIPs. These may include service fees and custodial fees. Investors should also look out for heavy account maintenance fees, sales charges, and high redemption fees. One of the reasons why SIPs tend to charge hefty fees is because it costs a lot to create and maintain them.

How Safe Are Mutual Funds?

Mutual funds are considered to be some of the safest investments for investors because they allow investors to diversify their holdings. They are not nearly as risky as other investments like stocks or bonds. Keep in mind, though, that they do come with some risk—notably, general market and inflation risk. You may lose some or all of your principal and may also be subject to high expense, management, and redemption fees.

The Bottom Line

Mutual funds are a very popular investment vehicle because they give investors a good way to diversify their holdings with little risk. Investors can use systemic investment plans, which can be used to invest in mutual funds, to execute their investment goals. Mutual funds and SIPs can be a great way to help you reach your investment goals. But, make sure you do your research to ensure that your investments align with your financial situation and goals so you don’t end up with major losses on your hands.