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Financial aid is a sham

Student loans have been in the news lately because of President Biden’s push to forgive some student loans. Personally, I don’t feel strongly either way. I paid off my $35,000 in loans but that doesn’t mean I’m going to get all hot and bothered if someone else gets a hand.

That said, I’ve long believed colleges are businesses. We all knew this with “for profit” colleges but all colleges are like this. That’s why Harvard continues to charge tuition even though they have an endowment of over $53 billion (as of 2021).

That leads us to our first article of the day (don’t worry, the last video I share is lighthearted and fun!):

The Single Most Important Thing to Know About Financial Aid: It’s a Sham [Slate] – “Colleges claim to award scholarships based on merit or need. In reality, they’re just charging the most they think families will pay.”

Report: Big U.S. Banks Are Stiffing Account Takeover Victims [Krebs on Security] – “When U.S. consumers have their online bank accounts hijacked and plundered by hackers, U.S. financial institutions are legally obligated to reverse any unauthorized transactions as long as the victim reports the fraud in a timely manner. But new data released this week suggests that for some of the nation’s largest banks, reimbursing account takeover victims has become more the exception than the rule.” Now more than ever, secure your accounts!

Retirement Giants Band Together to Help Job-Switchers Transfer 401(k)s [Bloomberg via] – “The two retirement giants, along with benefits administrator Alight Solutions, created a jointly owned consortium to automate the transfer of millions of 401(k) balances below $5,000 when workers change employers. An estimated $92 billion is taken out of retirement savings each year due to cash-outs, according to the Employee Benefit Research Institute (EBRI).” This is great for all involved – brokers because they get to manage more money but consumers too because they aren’t tempted (sometimes inadvertently) to cash out small 401(k)s.

I love magic and this video about Markobi, the 2022 World Champion of Magic, is great! I love how casual and faux haphazard / slopped he is:

Enjoy the weekend!