By Eliza Haverstock | NerdWallet

If you’ve been skipping your federal student loan bills, or you have defaulted loans, your time is running out to get back on track without harsh consequences. Two key pandemic-era relief programs are set to expire on Sept. 30: the student loan on-ramp and the Fresh Start program.

Millions of borrowers are benefitting from the on-ramp or Fresh Start — and some may not know it. To check, log into your studentaid.gov account and review your monthly payment history and loan repayment statuses. If you have missed or late payments, you’re on the on-ramp. If you have a loan listed as in default, you’re benefiting from the Fresh Start program.

In either case, you need to act by Sept. 30. Here’s how.

Student loan on-ramp: Make a plan to deal with your bills

The student loan on-ramp began Oct. 1, 2023, and lasts until Sept. 30, 2024. It’s intended as a safety net for the “most vulnerable borrowers,” the White House said last summer.

The program is automatic for all borrowers who miss payments during this time — there is no enrollment process. During the on-ramp, you can’t fall into delinquency or default. Missed payments won’t be reported to credit bureaus.

Roughly 3 million borrowers have taken advantage of the on-ramp and were at least 30 days late on their loans as of June 30, according to Federal Student Aid office data.

If you’ve been skipping payments, make a plan for October. Otherwise, you could face harsh and costly consequences. Once a payment is 270 days late, you will enter student loan default. Debt collectors can garnish your wages and charge hefty fees.

Here are steps to take before the on-ramp expires:

• Check your student loan accounts. Log into studentaid.gov, see how much you owe and update your contact and billing info. Your servicer can answer questions.
• Choose a repayment plan. If you don’t select a repayment plan, you’re automatically enrolled in the standard 10-year repayment plan. For more affordable payments, consider an income-driven repayment (IDR) plan.
• Consider a deferment or forbearance. If you won’t be able to afford payments for the foreseeable future, consider a student loan deferment or forbearance to pause payments for up to three years.

If you want to change repayment plans, note that only two IDR plans are currently available: SAVE and Income-Based Repayment (IBR).

» MORE: How the SAVE lawsuits are impacting IDR enrollment

Fresh Start program: Sign up ASAP to lock in defaulted loan relief

If your federal student loans were in default before the pandemic, take advantage of the Fresh Start program. About 7.5 million borrowers with defaulted loans are eligible.

You must enroll in the program by Sept. 30 to get out of default and lock in benefits, including:

• Loans returned to “current” status on credit reports, and negative default marks removed.
• Access to federal student aid and other government loans, like mortgages.
• Access to flexible repayment plans and potential loan forgiveness.
• Access to short-term relief, like deferment or forbearance.
• Suspension of involuntary debt collection efforts.

If you miss the Sept. 30 deadline and let your loans stay in default, you could face harsh consequences. Debt collectors might garnish your paychecks and tax refunds. You may face steep collections fees. Your credit score could plummet, making it difficult to qualify for future loans, mortgages or even apartment rentals.

You can avoid that headache — and get back on track with an affordable repayment plan — by signing up for the Fresh Start program. Here’s how:

• Submit a Fresh Start request. Fresh Start enrollment is free and can take less than 10 minutes. You can do it online on myeddebt.ed.gov, over the phone by calling 1-800-621-3115 or by sending a letter postmarked by Sept. 30.
• Watch for servicer communication. After you sign up for Fresh Start, the government will transfer your payments from the Default Resolution Group to a federal student loan servicer. Your new servicer will contact you once your loans transfer over.
• Choose a repayment plan after getting out of default. You’ll be automatically placed into the standard 10-year repayment plan, but about 80% of Fresh Start borrowers sign up for an IDR plan, according to the Education Department. Half of Fresh Start borrowers have $0 monthly payments under an IDR plan.

You can apply for an IDR plan within a week or so of your loan transfer.

Eliza Haverstock writes for NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @elizahaverstock.

The article Act Now: Two Key Student Debt Relief Programs Expire Sept. 30 originally appeared on NerdWallet.

By Tommy Tindall | NerdWallet

Is driving for Uber worth the money? I put this side hustle to the test and nervously drove strangers around northern Maryland for a couple days to find out.

Here’s what I earned:

• I made $143.73 over the course of three Uber “shifts” that totaled roughly 10 hours of active driving.
• I completed 10 trips, put 305 miles on my economical Uber rental and spent $38.80 on one tank of gas.
• Subtract the gas cost from $143.73, and I earned $104.93, or $10.49 an hour.
• Only $3 of my earnings were tips, which I found surprising — because I’m nice!

If you’re wondering, the minimum wage in Maryland handily beats my earnings at $15.00 per hour.

Uber wasn’t a lucrative side hustle for me, but it was an interesting experiment. Here are four things to keep in mind if you’re thinking about trying Uber. And if you want to watch all the ups and downs of this side hustle stress test, here’s a video of my experience.

Give yourself the flexibility to roam

During each of my three Uber “shifts,” I had the idea that I’d do rides relatively close to where I live. But the reality of living in a less populated area is that short, local trips can be few and far between. I found that to be the case even on a Friday evening in my suburban town, located roughly 50 minutes north of Baltimore.

I learned that to earn higher fares, you need to be open to where the Uber trip takes you. I left a lot of money on the table by skipping trips that would end too far from my home base. Uber works by matching riders with nearby drivers. As a driver, you have just a few seconds to accept a ride request when it comes in. I often took too long to decide when considering distance.

Toward the end of that Friday, I caved and accepted a 30-mile trip with a fare of $30.42. But when it was over, it was after 9 p.m. and I was a long way from home.

If I had put in 8-hour shifts and left myself to the mercy of the Uber Driver app, I’d have done better. But if I’m going to be driving all over creation for hours, is Uber a side hustle, or is it a main hustle?

Your car is a taxi cab and your primary tool

All that driving means you need a car that’s up to the task — something affordable, reliable and efficient. My personal vehicle is a gas-guzzler so I used Uber’s car rental service to rent a more appropriate vehicle and make this test more realistic.

But what I realized is a lot of people rent their Uber rides on the regular. If you go this route, you must rent from one of Uber’s approved rental company partners. The rental office I used, a local Hertz that partners with Uber, was packed, and I found the experience to be super hectic. It took three hours to get my car, and the one they gave me was a downgrade from what I reserved in advance.

Because of my experience, I don’t recommend renting if you can avoid it. Uber rentals cost $260 or more per week, so the recurring cost will eat heavily into earnings.

Finding your own affordable used car would likely cost less in the long run, even in cases where you get a car loan with bad credit. For example, let’s say you finance a $20,000 used car for 60 months with a high 19% interest rate. The $518 monthly payment costs less than the $260 a week rate for a rental car.

You will need to factor in insurance (which can include rideshare insurance), maintenance and repairs when comparing costs. You can turn to the Nerds for resources on how to build credit and finance a vehicle you can afford.

Consider a “slush fund” for car costs

I had the pleasure of meeting and riding home with a true Uber pro after I returned my rental car. His name is Greg Hiteshew, and Uber is his post-retirement hustle. He drives most days, says he earns between $1,000 and $1,500 in a typical week and is disciplined about saving money for car costs.

Hiteshew says he sets aside $40 at the end of every day and has done so for years without fail. He says it’s a daily habit that ensures he has enough to cover maintenance and repairs for his current car, and helps him save for the next car.

Consider putting your daily $40 (or whatever you can swing) in a high-yield savings account for the added bonus of interest on top.

Embrace the human side of rideshare

While we chatted on my ride home, Hiteshew opened up about how driving for Uber helped him cope with the loss of his wife. She passed away from cancer 12 years ago, and in the years after, he found himself in a pretty dark and lonely rut. Then one day a friend had a suggestion for a side hustle that would change his life.

“He said, ‘I want you to Uber,’” says Hiteshew, talking about meeting with his friend. The friend hoped it would give him something to keep his mind occupied. Hiteshew thought about it and decided to give it a try a week later.

“It worked,” he says. “Turns out I love it. I really enjoy doing it. I’ve met a lot of nice, nice people.”

I get what he’s talking about. I’ve been working from home for years, and trying Uber put me back into the world. I interacted with different people, visited parts of my area I hadn’t been to and realized how critical a service like Uber is for those who may not be able to afford a car. It reminded me how important it is to communicate with others, strangers even.

Turns out that part of the experience was more valuable than the money. And if I drive for Uber again, I think I learned enough to do better than $10.49 an hour.

Tommy Tindall writes for NerdWallet. Email: ttindall@nerdwallet.com.

The article How Much Does an Uber Driver Make? I Drove for Uber to Find Out originally appeared on NerdWallet.

By Julie Myhre-Nunes | NerdWallet

I had never driven an electric car before, so, naturally, I made sure my first drive covered 500 miles across two states in one day.

Although public opinion on electric cars is still mixed, facts suggest these cars are not a passing fad. Electric vehicle sales in the U.S. topped 1 million for the first time in 2023, quadrupling the figure three years prior. And although demand has slowed, a recent study by industry group Cox Automotive found that more than half of shoppers previously identified as skeptics are poised to enter the EV market in the second half of the decade.

While my first experience with an EV was unusual — I rented one to drive from San Jose, California, to a work event in Las Vegas — it included many situations a prospective buyer would want to consider. If you’re new to EVs or just curious about what a road trip in one is like, here are the lessons I learned.

Maximum range isn’t the actual range

The 2023 Chevy Bolt EV 1LT that I drove has a combined miles-per-gallon equivalent (MPGe) of 120 and a maximum range of 259 miles, according to the U.S. Department of Energy. These totals didn’t translate to real life.

That’s because an electric vehicle’s maximum range doesn’t take into account the use of anything in the car, including air conditioning/heater, the infotainment system, charging your phone or the terrain you’ll drive through. It’s just a measurement of what the 100% charged battery is capable of.

It turns out, though, that an electric battery functions best when it is between 20% and 80% full, because going over that exposes the battery to high voltages that can accelerate degradation over time. (Think of your phone battery and how the battery dies faster as the phone ages.) So if you’re keeping the car’s battery between 20% and 80% most of the time, your battery should last longer.

When I picked up the car, the battery was at 80%, which gave me a minimum of 151 miles. I had mapped out my trip based on where I could find public charging stations, and I knew the first leg of my trip would cover about 150 miles while driving through a mountain pass. Before heading out, I decided to top up the charge to a minimum of 163 miles — but, happily, I got to the first stop with 60 miles left, mostly due to regenerative braking that takes the energy usually wasted with braking and puts it back into the battery.

Charging isn’t always available

I charged the vehicle four times on my trip, using three of the four largest public charging companies: Electrify America, ChargePoint and EVgo. Because all three charging companies function differently, this meant that each time I was figuring out how payments and plugging in worked. It felt like I was 16 again and learning how to fuel up my car for the first time.

Depending on your area, you might have a plethora of charging options or not many at all, and it’s not always predictable. Consider two California cities of comparable size: Fresno with a population of 542,107 and Sacramento with a population of 524,943. When it comes to charging stations with Level 2 and direct-current (DC) fast chargers (the two fastest charging options), Sacramento has more than double the number of chargers in Fresno — 359 and 174, respectively, according to the U.S. Department of Energy. And there’s even more of a divide in different areas across the country.

Keep in mind, too, that not all of those chargers work for every car. Tesla has the largest network of charging stations by far, but while the company is opening up that network to other manufacturers and charge-point operators, that process is very much in-progress. What’s more, at any given station some of the chargers may be out of order (two of the four stations I visited had chargers that weren’t working), and if you get to a station and it’s full, you may have a wait ahead of you.

Charging may take a long time

Enter a drive from San Jose to Vegas in your favorite mapping software and it’ll say it takes about eight hours. My drive required 11 and a half.

Travel time in an EV depends on the vehicle you’re driving and what kind of public chargers you use. DC fast chargers can fill a battery electric vehicle to 80% in as little as 20 minutes or as long as an hour, according to the U.S. Department of Transportation. When I stopped at the ChargePoint in Coalinga, California, I had a minimum of 60 miles left in the battery. I used a DC fast charger for 1 hour, 9 minutes to gain an additional 103 miles.

But most plug-in hybrids and many electric cars are not yet equipped for that type of fast charging, and so realistically it may take longer. I didn’t do any Level 2 charging on my trip, but that technology can charge a battery electric vehicle to 80% in four to 10 hours and a plug-in hybrid in one to two hours.

In total I charged for 3 hours and 6 minutes over my 529-mile drive. For comparison’s sake, I drove a gas-powered car back from Vegas and had to gas up only once for eight minutes.

Charging anxiety is real

Awful. That’s how it feels to be on a long drive in an EV wondering if you’ll make it to the next charging station.

I experienced this twice on my trip — when I reached Mojave, California, with a minimum of 20 miles left, and then pulling into Las Vegas, with a minimum of 32 miles left. Both times I was genuinely concerned that I wouldn’t make it to my next stop. I turned off the air conditioning, stopped listening to my audiobook, unplugged my cell phone and tried to remain positive.

I started to plan out my options for what to do if the car died. I looked up charging stations near me using my phone, but had no luck. Worst case, I was ready to use my AAA membership, although I don’t know what they could do other than tow the vehicle to a charger. Of course, this was first timer’s nerves, but in survey after survey, anxiety over charging and range is among the biggest blockers to widespread EV adoption, with one noting that some 40% of current EV owners still report having a little.

A smartphone is essential for EV drivers

When you’re driving a gas car, there are plenty of opportunities to stop. In fact, you’ll see road signs along the highway to let you know when you can stop. This isn’t something you can rely on in an electric car. Instead, you’ll have to rely on your phone or previously mapped out charging stations. Despite mapping my stops ahead of time, I ended up looking for stops when I started getting charging anxiety.

Additionally, paying for charging may require your cell phone. Gas stations generally have two payment options: at the pump or with an attendant. None of the charging stations I visited had an attendant working, and ChargePoint didn’t let me tap or pay at the plug. Instead, I had to pay using its app, which isn’t ideal if your phone is dead or you can’t get the app to work.

Would I buy an EV after this trip?

Yes, but there are some caveats. I’m fortunate enough to be a two-car household, and if we were to get an electric car, it would replace one of the gas vehicles. I suspect electric cars are great for short trips, like a daily commute, but I’m not ready for one on a longer journey. And if I did buy an electric car, I don’t think I would rely on public charging. I would install a Level 2 charger in my home, which costs extra for the charger and the electrician but gives peace of mind that I could quickly top up every night.

Julie Myhre-Nunes is an editor at NerdWallet. Email: jmyhrenunes@nerdwallet.com.

The article What I Learned From My First EV Road Trip originally appeared on NerdWallet.

By Eliza Haverstock, Kat Tretina | NerdWallet

A typical four-year degree can cost $115,000 or more, according to a 2023 College Board report. Borrowing money to pay for college adds to the total cost, due to interest.

Federal student loan interest rates range from 6.53% for undergraduate borrowers to 9.08% for parents. Private student loans have an even greater range, and the rate you get generally depends on your credit.

To lower the overall cost of your education, consider making optional student loan payments while you’re in school or during your grace period. Even if you can only afford a small amount, every payment you make will decrease the amount of interest that accrues. You could save thousands over the life of your loan.

“Interest begins accruing on most private student loans and some federal student loans as soon as students receive the money, even if payments aren’t due,” says Jill Desjean, senior policy analyst with the National Association of Student Financial Aid Administrators.

Nerdy Tip There is one exception: If you qualify for federal subsidized Direct loans, the government covers the interest charges while you’re in school and during your grace period.

The impact of making student loan payments while in school

Paying even small amounts while you’re in school can add up. Consider this hypothetical example: Let’s say you take out $10,000 your first year of school at 6.53% interest on a 10-year repayment term. Here’s how different repayment amounts impact your total savings:

• If you don’t make in-school payments, you’ll pay $141 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $17,653.
• If you pay $25 per month while in-school, you’ll pay $132 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $17,161 — a savings of $492.
• If you pay $50 per month while in-school, you’ll pay $116 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $16,669 — a savings of $984.
• If you pay $100 per month while in-school, you’ll pay $86 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $15,686 — a savings of $1,967.

If you have multiple loans and can’t afford to make payments toward all of them, pay the one with the higher interest rate first, says Amy Lins, vice president of customer success with Money Management International, a non-profit financial education agency.

Making payments will also help you avoid the effects of capitalization — where interest is capitalized and added to your principal balance. Capitalization is typically what people mean when they talk about paying interest on your interest. By making payments while in college, you can cut down on the amount that’s capitalized, preventing your loan balance from ballooning out of control.

When should you skip in-school payments?

Depending on your circumstances, making in-school payments may not make sense. If you fit into one of the following groups, you may be better off deferring your payments until you leave school and your grace period ends.

You can adjust your budget

If you find that you can afford to pay $50 or more per month, you may need to rethink your budget and approach to borrowing.

“While making payments during school can save student loan borrowers money, the cheapest option is to not borrow at all because of loan origination fees,” Desjean says. “If you’re in a position to make payments on your loans during school, examine whether you can use that extra money to pay for school expenses directly without borrowing.”

Similarly, if you borrow money, the school will send you a check for the excess amount after covering your tuition and fees. You can use the cash to cover other education expenses, including your textbooks and meal plan. But according to Robert Farrington, founder of The College Investor, those excess dollars are an opportunity to reduce your debt.

“I would always encourage you to minimize lifestyle expenses,” he says. “Maybe get an extra roommate or anything you can do to save money, and then you can take that refund and put it right towards your student loan. Even if you wait until the end of the semester or the end of the academic year, I would throw it right back at your student loans ahead of time instead of keeping that.”

You’re pursuing loan forgiveness

If you’re planning on working as a teacher or for a non-profit organization, you may qualify for loan forgiveness under Public Service Loan Forgiveness (PSLF), so making extra payments may not make sense.

“If you’re working in public service and qualify for PSLF, you could end up a lot wealthier in life by paying as little as legally allowed on your loan and receiving loan forgiveness,” Farrington says. “If you know what direction you’re taking while in college, you can give yourself a head start.”

You have other debt

Your student loans may not be the only form of debt you have. And if you have other debt with higher rates, it may be financially wise to target the highest-interest debt first.

“If someone has accumulated credit card debt, for example, that’s likely to be at a much higher interest rate [than student loans],” says Lins. “And I would tackle that first to keep that credit card balance from growing.”

You have subsidized federal student loans

If you have subsidized federal student loans, which are available to students with financial need, interest does not accrue while you’re in school or during your six-month grace period. If you have this type of loan, your balance won’t be larger upon leaving school than it was when the loan was disbursed.

However, making in-school payments if you’re able can still help you in the long run, because interest will accrue on a smaller balance once you leave school.

Eliza Haverstock writes for NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @elizahaverstock.

The article Want Cheaper College? Pay Interest While in School originally appeared on NerdWallet.

By Rosalie Murphy | NerdWallet

Rising costs tighten margins for business owners. And to make up for that increased pressure, businesses usually have to raise prices — which, when it’s done month after month, can start to wear on customers.

Customers are facing “price increase fatigue,” says Kirk Jackisch, president of consulting firm Iris Pricing Solutions. “They’re done. They can’t take it anymore — just across-the-board price increases. So you have to look at more surgical solutions.”

Targeting price increases carefully and communicating them clearly can help ease the pain customers feel, Jackisch says. Here’s how you can go about it — and what you need to avoid as legislators across the U.S. focus on fees and surcharges.

Balance price increases with new deals

Matthew Heaggans is co-owner of Preston’s: A Burger Joint, a restaurant in Columbus, Ohio. When sambal, an ingredient they used in a signature sauce, more than doubled in price, Preston’s began buying chili peppers to make their own — but then those tripled in price, too.

In light of such rising costs, Heaggans says Preston’s raised prices by about 7% on average. But that doesn’t mean they’ve raised every price by 7%.

For example, while a burger might be more expensive than it used to be, sides are now cheaper when you buy them as part of a combo.

“People are driven very significantly in our market by price,” Heaggans says, so it’s essential that Preston’s keeps prices competitive.

If you’re concerned about the long-term impact of price increases, you can opt to adjust them temporarily to account for cost shocks. For example, as egg prices spiked in 2023, some restaurants temporarily increased the prices of dishes containing eggs. Shipping companies have long adjusted their fuel surcharges as gas prices rise and fall.

Fortunately, for all of the “agonizing” he put into price changes, Heaggans says customers didn’t mind.

“My constant plea to consumers is that if you really, really like a thing, you should support it or it’s going to go away,” Heaggans says.

Don’t inflate your fees to avoid raising sticker prices

Customers often feel duped by last-minute or opaque fees — and regulators are taking aim at them, too.

At the federal level, the Biden administration has announced plans to crack down on junk fees on everything from event ticketing to college textbooks. And as of July 1, California has banned “drip pricing,” or advertising a price that doesn’t include mandatory additional fees and surcharges.

California’s law is designed to target last-minute, high-cost service fees on products and services like concert tickets and hotel rooms, says David W. Wright, an attorney at Pillsbury Winthrop Shaw Pittman LLP in Los Angeles.

The law is “not necessarily preventing businesses from trying to recoup those costs, but instead trying to make it so that businesses disclose those costs up front so consumers know what they’re getting themselves into,” Wright says.

Under California’s rule, handling fees have to be listed as part of the advertised price. “Reasonable” shipping fees and taxes, however, do not.

“The safest way to protect yourself is to include all prices” within the sticker price, Wright says.

Other states limit pricing practices in additional ways. For instance, some companies pass credit card charges onto customers to offset their payment processing costs. But several states restrict the practice. For example, New York requires you to include these fees in the posted price but allows you to charge a lower price for customers paying cash. And Colorado caps credit card surcharges at 2%.

Offer customers fee-free alternatives when possible

Jackisch also recommends increasing prices in ways that focus on the customers who cost the most to serve — like those that request rush jobs or ask for last-minute changes.

For example, if your company typically delivers orders in four weeks and a customer requests a two-week turnaround, you might apply a rush charge. After all, your business will have to absorb the costs of disrupting your normal operations to meet that customer’s needs.

Most customers see fees tacked onto their bills as “punitive,” Jackisch says. The key is to make sure there’s a way to avoid those fees and explain what it is.

The fee-free alternative in this case? For the customer to wait the typical four weeks.

Salespeople should be able to explain that when it comes to customer requests, “we’re happy to do it. But just recognize that there’s a cost to us, and we’re passing some of that along to you,” Jackisch says. “That communicates the value and the fairness of the fee.”

Rosalie Murphy writes for NerdWallet. Email: rmurphy@nerdwallet.com.

The article How to Increase Prices Without Losing Customers originally appeared on NerdWallet.

By Sam Kemmis | NerdWallet

Remember those old internet ads promising one “weird trick” to improve your fitness forever? I never clicked on those, but I wonder if the trick was “exercise often.” Because that would work.

Similarly, I’m asked all the time about the best way to use credit card reward points — specifically, points issued by banks designed to cover a variety of travel expenses. Three-quarters of credit card accounts offered rewards in 2022, according to the Consumer Financial Protection Bureau, and many come with flexible redemption options. The answer is surprisingly simple: Learn how to transfer those points to travel loyalty programs.

Transferring points isn’t a particularly easy or obvious option. But the value of the points from popular issuer loyalty programs — such as Chase Ultimate Rewards®, American Express Membership Rewards and Capital One miles — can vary dramatically depending on how they’re used. That’s why NerdWallet offers both a “baseline value” and “maximized value” in our point valuations.

The baseline value is how valuable points are when used for booking travel directly through the issuer’s rewards portal, such as Chase Travel℠ or Capital One Travel. The maximized value relates to how much these points are worth when transferred to their best partner program. For example, the baseline value of American Express Membership Rewards is 1 cent, while the maximized value (when transferred to the best partners) is 2 cents.

Don’t be deterred

Most credit card reward programs make it easy to use your points for their baseline value. They usually show the cost of using points right next to the cash price when searching for travel on their booking platforms.

To be clear: There’s nothing wrong with using your points this way. Sometimes it’s actually the most valuable redemption option. And you generally get benefits like earning miles on flights booked this way. But there is another way.

American Express puts the “transfer points” option at the bottom of a hard-to-find menu on its account page. Don’t be deterred.

Figuring out how to actually transfer your points is one thing. Then comes the real challenge: Which partner program should you transfer them to?

This is the step where most people — including me — are most likely to get deterred. Each credit card program has a long list of transfer partnerships ranging from well-known U.S. brands like Delta Air Lines to international airlines like EVA Air. Which transfer partner is “best”?

Be clear about your goals

Many articles about maximizing points focus on redemptions that yield the best dollar-per-point value, which are almost always business and first class awards. But it’s worth asking: Is that what you want?

If you were planning to fly in a premium cabin already these articles can be helpful. But there are many problems with trying to book these awards, including restricted availability, complex booking processes, large fuel surcharges and other fees.

Flying economy might give you a worse dollar-per-point value than flying first class, but you might be able to squeeze more trips out of your points. And transferring points to loyalty programs for economy flights could still give you an edge over booking directly through an issuer. Don’t suddenly turn into a champagne-swilling points maximizer just because some article told you to.

Also important: Don’t transfer your points until you know the redemption you want to book is actually available. Otherwise you’ll be stuck with a bunch of points in random programs, and this one trick will turn into a big hassle.

Stick with it

The thing about this one weird trick — just like exercise — is that it requires persistence. It’s not a magic bullet.

Credit card holders earn $40 billion worth of rewards each year, according to a 2022 report from the Consumer Financial Protection Bureau. And most of those rewards won’t be used to maximum effect.

By simply considering transfer partnerships as an option when using your credit card points, you’ve already put yourself 10 steps ahead of most people.

Sam Kemmis writes for NerdWallet. Email: skemmis@nerdwallet.com. Twitter: @samsambutdif.

The article Maximize Credit Card Points With Just One (Big) Skill originally appeared on NerdWallet.

By Anna Helhoski | NerdWallet

Climate change is frightening, inconvenient, expensive and, increasingly, deadly. And there’s really no escape.

In this year alone, the U.S. has had a myriad of natural hazards worsened by climate change: the earliest recorded Category 5 hurricane to make landfall; floods throughout the country; record-breaking heat everywhere; tornadoes in the Midwest; and wildfires in the West. The La Nina weather pattern is expected to arrive soon, which is likely to fuel storms in the Atlantic during this year’s hurricane season.

Climate change amplifies the frequency, duration and intensity of extreme weather events. It can cause all kinds of disruptions and health hazards while driving up expenses like heating, cooling and homeowners insurance.

Get hammered enough by amplified weather events and you might wonder if there’s somewhere a little less hazard-prone to live. While there is no place on Earth that is immune to the impact of climate change, some places are less exposed to risk than others.

Last year, NerdWallet examined federal data and found that most of the fastest-growing places in the U.S. are also at high risk for natural hazards that are exacerbated by climate change. This year, we explored which places — in this case, counties — are least likely to feel the impact of natural hazards.

Isolation doesn’t guarantee fewer risks — just fewer people

If you rank places only by Federal Emergency Management Agency rating, the counties in the U.S. with the lowest risks are the places with the fewest people.

At the top of that list is Loving County in North Texas, where just 64 people reside — the least populous county in the country. No. 2 is Kalawao, Hawaii, which was originally established as an area of forced isolation for people with Hansen’s disease, or what was once more colloquially known as a leper colony. And No. 3 is Keweenaw, Michigan, a peninsula containing a national park where, as the county’s website says, you can “find solitude in the pristine, remote wilderness while sharing trails with the island’s moose and wolves.”

However, solitude doesn’t make for the best measure of risk from natural hazards. FEMA’s risk index takes population into account as part of social and community risk when it makes its risk designations — it stands to reason that the fewer the people, the lower the risk. But, of course, the natural hazards are still there: North Texas isn’t immune from extreme heat, tornadoes or extreme thunderstorms, for example. A Hawaiian island won’t be immune from a hurricane, earthquake, flash flood, wildfire or tsunami. And any area that is designated a peninsula, like Keweenaw, Michigan, is highly likely to be flood-prone.

While FEMA’s National Risk Index measures current risk, it must be noted that extreme weather effects are projected to worsen as the planet continues to warm on our current trajectory, and in coming decades, coastal flooding will increase as sea levels rise.

Note also that FEMA’s ratings consider not only the kinds of events that can be worsened by climate change (floods, droughts, wildfires, storms), but also natural hazards that aren’t affected by climate change, like earthquakes and volcanoes.

What midsize counties have the lowest climate change risks?

To get a better picture of what might make an area least vulnerable to natural hazards and still boast the creature comforts of basic infrastructure, NerdWallet set a population control of at least 100,000 people. It includes the annual cost of living in 2023 dollars, according to the Economic Policy Institute’s Family Budget Calculator for households comprising two adults and two children.

What most populated counties have the lowest climate change risks?

People migrate to some of the most populated areas in the country for obvious reasons, like the availability of housing, jobs, entertainment and a desire for proximity to lots of other people.

Among the counties with populations above 1 million residents, here are the counties where the risk of natural hazards is lowest. The analysis also includes the annual cost of living in 2023 dollars, according to the Economic Policy Institute’s Family Budget Calculator for households with two adults and two children.

No matter where you live, climate change will cost you

The terrible truth about climate change is that even if you uproot your life and move to a place with low risks of natural hazards, intense weather events are still likely to find you. For example, most of the relatively high risks in midsize counties have to do with winter weather. In some places, winters are becoming less severe, but in others, they are worsening. And one big event could be devastating.

In the U.S., extreme weather events cost nearly $150 billion per year, according to The Fifth National Climate Assessment, a report released in November 2023 by the federal government. That sum doesn’t account for additional costs including loss of life, health care costs, or damages to what are known as ecosystem services — for example, food, water, timber and oil. There’s a billion-dollar weather or climate disaster in the U.S. every three weeks, on average, the report found. That is compared with one every four months in the 1980s.

Despite all this, nearly half of all Americans (45%) don’t believe that climate change will affect them personally, according to a December 2023 survey by Yale University. So how about what a single person pays: Issues related to climate change will cost a child born in the U.S. in 2024 at least $500,000 — and as much as $1 million — over their lifetime due to indirect and direct costs (such as missed cost-of-living increases and lower earnings), according to an April analysis conducted by ICF, a global consulting firm, and released by Consumer Reports.

Some current and future costs are likely to include:

• Homeowners insurance. If you’re a homeowner, you know all too well how heightened weather-related disaster risks play into your homeowners insurance premiums. In certain places where risk is highest, private insurers won’t provide coverage for floods and wildfires.
• Home maintenance, upgrades and safeguards against climate risks. These could include installing a sump pump or resealing basement walls; upgrading insulation and windows; adding or enhancing heating or ventilation systems; roofing upgrades and more.
• Energy bills. With increased heating and cooling needs come higher energy bills.
• Food. Weather changes present challenges to food production, which could lower supply and increase prices.
• Higher taxes due to more government spending and lower government revenues. The Consumer Reports report cites reduced personal and corporation earnings that lead to less tax revenue combined with higher expenses that the government must take on for health care and infrastructure damages.
• Lower income. The Consumer Reports analysis cites a possible decrease in labor hours due to extreme weather, which may lead to lower earnings.

Climate migration within the U.S. is already happening. A 2021 survey by the real estate website Redfin found that among those who plan to move, half say climate change-fueled conditions like natural disasters and extreme temperatures are factors in their decision. There are expenses associated with uprooting your life and moving elsewhere — and those aren’t costs that everyone can afford.

Anna Helhoski writes for NerdWallet. Email: anna@nerdwallet.com. Twitter: @AnnaHelhoski.

The article You Can’t Escape Climate Change, but in Some Areas, Risk Is Lower originally appeared on NerdWallet.

By Anna Helhoski | NerdWallet

Despite the prevalence of TikTok videos and recent articles detailing stories of individual college graduates struggling to find good jobs, the data tells a different story.

After all, the overall labor market is stronger than it’s been in decades. And Zoomers who recently graduated from college are certainly better off, in most respects, than previous generations of new grads.

“If you’re a recent college grad, right now things aren’t booming with opportunities like they were a couple years ago,” says Nick Bunker, economic research director for North America at Indeed Hiring Lab. “But it’s still really a relatively solid labor market. And hopefully, fingers crossed, the market stays strong for a couple years. And that gives you more opportunity to find a job as opposed to hanging your hat for the first six months after you graduate.”

When you compare the labor markets faced by Zoomers with previous generations, recent college grads now are better off than their older counterparts: Zoomer grads are earning much higher salaries today than Gen X did in the mid-1990s. Inflation may eat away at Gen Z’s high wages, but it doesn’t touch the stagflation of the 1970s and 1980s that baby boomer college graduates encountered.

The short recession that Gen Z experienced at the start of the pandemic is certainly no Great Recession, which technically lasted less than two years, but was followed by several years of tepid economic growth. That period stymied recent millennial graduates during crucial early employment years and is likely to negatively impact their lifetime earnings.

“It’s not just the year that you graduate,” says Bunker. “Your first years out probably make the most difference because that’s when you’re getting your foot on the career ladder.”

Gen Z bounced back fast

Despite the fact that the oldest cohort of Zoomers — 2020 grads — entered a job market with the highest unemployment rate in the modern era, that recession lasted just two months. And what followed was one of the strongest economic bounce backs ever.

The nation’s unemployment rate has hovered between 3.4% and 4% since December 2021. The current rate, 4.1%, remains among the lowest in 50 years, which means Zoomer college graduates have strong prospects for getting jobs right out of school and moving up the career ladder.

Bunker says the job market has cooled compared with two years ago. There is far less competition among employers than in 2022, which means fewer opportunities, according to Bunker. But it’s not all that dramatic in the broader context.

“If we wind the clock a little bit more and compare to what we saw pre-pandemic, it’s around those levels,” Bunker says. He adds that when compared with previous cohorts of graduates, job opportunities are roughly in line with those enjoyed by millennials who completed college in the early 2000s.

Gen Z’s unemployment outlier

Even with all of the positive aspects of the current labor market, there’s still a unique trend among recent Gen Z graduates that earlier generations haven’t faced: an unemployment rate that’s higher than overall unemployment.

It’s a particular quirk seen when you parse unemployment data among recent graduates over the past 30 years. The unemployment rate as of March 2024 for recent graduates was 4.7% — a full percentage point higher than the overall unemployment rate at that time, 3.7%.

This is an unusual development. Before 2018, the unemployment rate among recent grads was almost always lower than overall unemployment, due to strong employer demand for highly educated workers.

The reversal is likely because there’s been a surge in demand for non-college-educated service workers since the pandemic.

Underemployment is still high among recent grads

Labor data shows that underemployment — the rate of those with college degrees who are working jobs that don’t require degrees — has always been higher among recent graduates compared with all bachelor’s degree holders.

“They go ahead and get that college degree and then they can’t get on a career track that uses that education,” says Elise Gould, senior economist at the Economic Policy Institute (EPI), a nonpartisan think tank.

It doesn’t help that certain job sectors have become more crowded. Majoring in computer science, for example, doesn’t guarantee a job anymore as tech companies pull back from hiring.

Underemployment among computer science majors is higher than those who study health-related programs, education or engineering, according to a February 2024 report by The Burning Glass Institute, a labor market analytics firm, and Strada Education Foundation. But fewer computer science majors are underemployed when compared with those who study social sciences, psychology, humanities and business management.

As of March 2024, some 40% of recent graduates are working in jobs that don’t require a degree versus 33% of all college graduates, according to data from the Federal Reserve Bank of New York.

Salaries for recent grads have spiked

Gen Z college graduates can expect higher-than-ever salaries when they enter the job market: The typical recent college graduate with a four-year degree can anticipate a salary of around $62,609, according to an analysis of employer job postings and third-party data sources by ZipRecruiter, a job posting site. That roughly matches the Federal Reserve Bank of New York’s finding of $60,000 as the median annual wage for a recent graduate with a bachelor’s degree.

As the chart below shows, current median salaries are above those held by earlier generations of newly minted graduates when adjusted for inflation.

Even though salaries are at a peak for recent grads, the latest cohort might not be earning what they expect: A survey released by Real Estate Witch, a housing market research and review site, found 2023 graduates expected to make around $85,000 at their first job and the minimum salary they said they would accept is around $73,000. However, Real Estate Witch found that the average starting salary for a recent grad is about $56,000.

“If you’re a young person graduating now, maybe the differential between what you expected and what reality is, is quite large,” says Bunker.

It’s also possible that wage growth for young new hires may have plateaued as the momentum in the overall labor market that was pushing wages higher has now slowed, says Liv Wang, senior data scientist at ADP Research Institute, which measures workforce data. “If we look at ages from 23 to 26 — that includes a lot of recent grads — and the median hourly base pay for them is like $17, and that per-hour has been little changed since June 2022,” says Wang, citing recent ADP data.

Still, as Gould points out, young workers are disproportionately lower-wage workers — even if they have a college degree.

Gen Z grads do face economic and employment uncertainty

Today’s college graduates heading into the workforce aren’t free from economic challenges. They’re dealing with elevated inflation that eats away at their wages. And when you earn less — as most young workers do — higher costs take a bigger bite. In recent years, the cost of housing has skyrocketed, especially for renters, while health insurance and car ownership have both grown more expensive. And, Gould says, like generations before, young workers fresh out of college who have student loan debt will carry an additional burden.

Salaries, overall, may be higher than ever, but it varies based on your degree. And there are still persistent gender and racial inequities to earnings, Gould points out.

But once again, the data shows it is still a pretty good time to be a college graduate and, in general, to have a degree.

It still pays to get a college degree

Those with college degrees remain more likely to be employed than workers in the same age group, ages 22 to 27, according to an analysis of U.S. Census Bureau data from the Federal Reserve Bank of New York. Even an associate degree or professional certificate can give young workers a leg up, as many areas of the country are facing a shortage of middle-skills labor.

In March 2024 the unemployment rate for recent college grads — those ages 22 to 27 — was 4.7% compared with 6.2% for all young workers in the same age group.

Anna Helhoski writes for NerdWallet. Email: anna@nerdwallet.com. Twitter: @AnnaHelhoski.

The article Actually, the Job Market Isn’t So Bad for Gen Z College Grads originally appeared on NerdWallet.