Today’s top news headlines feature advice to parents and students who want to cut tuition costs and disparities between Americans and the Federal Reserve over food inflation. Plus, find out why lesser-known provisions of new housing regulations may inhibit the recovery of the real estate market.
Experts Push Community Colleges As A Money Saver
The New York Times
Financial professionals are encouraging students to satisfy their required pre-requisite courses at a community college for the first two years of their education, which can yield thousands of dollars in tuition savings. However, students should ensure their credits will transfer to a four-year university and enroll early while seats are still open. Speaking to a college advisor is also important in making sure each credit will transfer accordingly to avoid being forced to take additional classes.
Americans and Fed Dispute Inflation
The Federal Reserve continues to say that inflation remains low; however, most Americans disagree, voicing concerns that rising food costs are making it more difficult to budget and limit spending. Adding to the strain are rising prices amid stagnant wages, many Americans say. Most consumers say they are frugal and adhere to a budget but low wages and few raises are making it harder to compete with rising fuel and food prices.
Lesser-Known Changes to Mortgage Rules May Hinder Growth
The Los Angeles Times
New government proposals are being met with criticism from housing advocates and consumers, who say the new regulations—which will only assign the best terms to homeowners who make a 20 percent down payment—will make it difficult for most Americans to receive financing. However, lesser-known provisions, such as the mandatory debt-to-income limitations, tighter credit standards and new refinance rules relating to home equity, may only add to this scenario.
Ex-CEO of Mortgage Company Tries to Steal $1.5 Billion During Scam
Paul Allen, former CEO of Taylor, Bean & Whitaker Mortgage Corp., pleaded guilty to charges of attempting to defraud investors and the government of roughly $1.5 billion. The ex-CEO lied about his company’s asset holdings to investors, illegally resold already-owned mortgages and listed fraudulent information on his application for Troubled Asset Relief Program funds. If convicted, Allen may receive up to 10 years in prison for his crime.