Morning Business Report: Student loan collections restart as Dow hits record high
A wave of financial and economic developments is shaping the outlook for borrowers, investors, and consumers as markets continue to climb to record territory.
(LILAMAX)- A wave of financial and economic developments is shaping the outlook for borrowers, investors, and consumers as markets continue to climb to record territory.
The U.S. Department of Education has restarted collections on federal student loan borrowers who are in default, affecting an estimated 5.3 million people nationwide. Under the renewed process, the federal government can order wage garnishment without court approval. Borrowers will receive a 30-day notice before any money is withheld from their paychecks.
Officials say roughly 1,000 borrowers are expected to receive notices in the first wave, with some tied directly to January paychecks.
Meanwhile, older workers could soon gain more flexibility in how they use retirement savings. A bipartisan bill would allow 401(k) holders to use their funds to purchase annuities, potentially creating guaranteed income in retirement. Financial advisors caution the move may not be the best option for everyone, noting that leaving money in a 401(k) could allow savings to continue growing over time.
On Wall Street, stocks surged to new highs. Both the Dow Jones Industrial Average and the S&P 500 closed at record levels. The Dow added nearly 500 points, finishing above 49,000 for the first time ever.
Prediction markets are also drawing attention as traders bet on potential international shake-ups. On the Kalshi, odds that President Donald Trump would “take back the Panama Canal” before early 2029 jumped above 35 percent, up from under 30 percent late last week. The likelihood that the U.S. would “take control of any part of Greenland” rose to 38 percent midday Tuesday, an increase of roughly eight percentage points in just days.
In sports and entertainment business news, sumo wrestling is making its way to the United States. The World Championship Sumo event is scheduled for 8 p.m. on January 30 at the Westchester County Center in White Plains, New York. Organizers say the International Sumo League — which features more than 50 of the world’s top sumo wrestlers — is projected to become a $1 billion global business within the next five years, with plans to host two events each month worldwide.
