June 19, 2013

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Student loan rates set to double in July

June 6, 2013 By

Interest rates for federally subsidized Stafford loans are set to jump from 3.4-percent to 6.8-percent on July 1. And for the average college student already $26,000 dollars in debt, the idea of even more debt looming is troubling.

It was a similar situation in June, 2011, when Congress passed a measure keeping the rates low just days before the deadline. But U.S. Sen. Roy Blunt says proposals this year won’t pass without a compromise.

“There will be a couple of votes on student loans. Neither of them will pass. Neither the Republican proposal or the Democratic proposal,” said Blunt.  ”And that means we can get down to work and see if we can solve this student loan problem so that students have more certainty and access to loans at rates they will understand for a long time.”

Loan experts say Congress should pass something to keep rates low, but some don’t know what Congress will actually do.  

“I do think there is going to be a lot of talk about doing something, nobody wants to see it increase,” said Leanne Cardwell, the assistant student loan commissioner for the Missouri Department of Higher Education. “Whether they can come to an agreement is anybody’s guess.”

Cardwell says if rates do increase, it will end up costing students about another one-thousand dollars per loan. 

Two proposals that would prevent the interest rate hike both failed in the U.S. Senate on Thursday.

 AUDIO: Matt Evans reports (1:04)

Filed Under: Education, Finance, News

Budget director: May numbers show growth in general revenue, consumer confidence

June 4, 2013 By

The state budget director says May’s general revenue report shows the state economy is making slow but steady rebounds. Budget Director Linda Luebbering says the numbers show consumer confidence is up slightly from last year. She says sales and use taxes dropped slightly — two and a half percent — from last May, but that was to be expected.

“We had expected the sales and use tax to grow at a slower pace than the individual income tax,” she says.  This expectation was driven by the assumption that jobs and salaries would increase first; and then later consumers would feel comfortable enough to start increasing their purchases.”

She says the overall numbers show a boost in consumer confidence, however sales taxes actually show a decline in May, slightly up for the year, meaning consumers are still very cautious about the purchases they’re making.

GROSS COLLECTIONS BY TAX TYPE

Individual income tax collections
· Increased 9.3 percent for the year, from $5.33 billion last year to $5.82 billion this year.
· Increased 3.5 percent for the month.

Sales and use tax collections
· Increased 1.5 percent for the year from $1.71 billion last year to $1.74 billion this year.
· Decreased 2.5 percent for the month.

Corporate income and corporate franchise tax collections
· Increased 3.1 percent for the year, from $414.1 million last year to $427.1 million this year.
· Increased 15.9 percent for the month.

All other collections
· Increased 25.9 percent for the year, from $347.4 million last year to $437.2 million this year.
· Increased 33.6 percent for the month.

Refunds
· Decreased 5.6 percent for the year, from $1.19 billion last year to $1.13 billion this year.
· Increased 15.6 percent for the month.

 

 

 

Filed Under: Economy, Finance, News

Powerball jackpot reaches a record $600 million (AUDIO)

May 17, 2013 By

The Powerball jackpot is pushing high payouts due to strong sales and continues to get pushed higher before this Saturday’s drawing… and it has. It’s now soared to a record $600 million with a cash value estimated at $376.9 million.

Saturday’s estimated Powerball jackpot has rised from $550 million to $600 million, and due to overwhelming number of ticket purchases made in Missouri, the gigantic jackpot could possibily keep on growing before this weekend’s drawing.

Executive Director May Scheve Reardon says it only takes 2 dollars at a chance to win big, and all proceeds go to public education in Missouri. “It only takes one ticket to win, and it’s a one in 175 million to one chances that someone would win the powerball,” she said.

Reardon adds that Missouri is no stranger to Powerball winners. “We’ve seen it happen here in Missouri so many times and we think it’s going to happen again,” she said.

Reardon suggests that players play responsibly and within their means. Powerball players have until 8:59 p.m. Saturday to purchase Powerball tickets.

Listen to full interview with Missouri Lottery Executive Director May Scheve Reardon, here. (3:15)

Filed Under: Featured, Finance, Human Interest, News

Dept. of Insurance returns more than $6 million in claim payments to consumers (AUDIO)

May 3, 2013 By

The Department of Insurance has returned over $6 million in claim payments to consumers who fiiled complaints against their insurance companies.

Department of Insurance Director John Huff says the department has had a strong first quarter this year helping consumers recover from their insurance companies and receive their claim payments of more than $6 million on claims ranging from health, auto, and homeownership.

He says he encourages consumers to file a claim even if they feel like they’ve run out of options; if their claims have been denied by their insurance company, or they feel that their settlement is unfair.

“Through our Consumer Affairs Division, we have consumer service representatives that answer phone calls, and take e-mails, and written complaints against insurance companies and then they help mediate those issues,” Huff said.

Huff says the monetary claims can then be resolved between the consumer and their insurance company. He says the top reason for complaints in the first quarter of 2013 is claim denial. Delay of claim processing and unsatisfactory offer were not too far behind. Health insurance had generated the most complaints with 309 formal complaints, followed by auto and homeowner insurance complaints.

“We have two teams: one for property and casualty claims, which would include homeowners and auto claims; and then we have life and health claims which would inclue annuities and health insurance,” Huff said.

Consumers with complaints or questions about their insurance agent or company call the department’s Insurance Consumer Hotline for more information at 1-800-726-7390 or visit www.insurance.mo.gov.

 

 AUDIO: Mary Farucci reports. (1:02)

Filed Under: Featured, Finance, Insurance, News

MoDOT says fiscal year budget continues to decline (AUDIO)

May 2, 2013 By

The Department of Transportation is looking at less money than they hoped they would have in their proposed budget for 2014- and it’s not what they hoped for.

Chief Financial Officer Roberta Broeker with the Department of Transportation says the department might not have enough money available for fiscal year 2014.

She says even this year’s budget is almost a third smaller than the budget from four years ago and its resources continue to see a decline. Broeker says next year, MoDOT’s own facilities will be receiving $7.2 million and it has made them wonder how with such a small amount of money, they’ll be able to operate adequately.

“Unlike a lot of state agencies, where the legislature says, ‘Well, I’m going to appropriate money to you. This is what you have to spend,’” Broeker says. “MoDOT has to predict how much money we’re going to receive from the various user fees and then because of the unique form of the commission, in state government here you are calling the ball.”

She says with less money available in the budget, the department won’t be able to build and maintain as much infrastructure as they could previously. “2014′s budget is actually the smallest budget that MoDOT has proposed since 2005,” Broeker said.

Broeker says in past years the budget has seen an increase, but then it took a substantial decline in a short amount of time and continues to go down.

 AUDIO: Mary Farucci reports. (1:04)

Filed Under: Featured, Finance, News, Transportation
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