Are you reeling from the recent stock market gyrations? Afraid to look at your 401(k) balance? Does it feel like we’re already in a recession? We’ve got you covered. Check out CNN’s guide to financial sanity in a not-so-sane world. Here’s what else you need to know to Start Your Week Smart. Sunday spotlight The US Department of Education will restart collecting federal student loans in default on Monday, ending a pandemic-era pause that began about five years ago. More than 5 million borrowers are in default. Federal student loans go into default after 270 days without payment. The move comes as President Donald Trump is dismantling the Department of Education and rolling back some of former President Joe Biden’s policies, including some dealing with student loan forgiveness. 1️⃣ Fear and anxiety: Student loan borrowers who are in default say making hefty monthly payments could upend their lives as they struggle to pay for basics like food and housing. Some are preparing for the worst. 2️⃣ What to expect: The government will restart the Treasury Offset Program, which collects debts by garnishing federal and state payments, such as tax returns or Social Security benefits. It also will begin dipping into people’s wages. 3️⃣ Taking a hit: More than 9 million student loan borrowers could see their credit scores tank as delinquencies are poised to hit record highs. New student loan delinquencies have been shown to have big impacts, with scores dropping an average of 87 points for borrowers with a weak credit history and 171 points for those with better credit. 4️⃣ Who’s in charge? The financial arm of the Department of Education managed student loans, but Trump’s plan to kill the agency raised a huge question mark. He said the Small Business Administration would take over responsibility. 5️⃣ Drowning in debt: Student loans. Credit cards. Mortgages. Americans are finding it harder and harder to pay off their debt, and in some cases they haven’t been this overextended since the aftermath of the Great Recession. Top headlines • GOP amps up Trump impeachment talk in midterm battle as party leaders woo Kemp for Senate• Trump draws criticism with AI image of himself as the pope ahead of the papal conclave• A pregnant woman wandered the desert for days before Border Patrol detained her. Now with a newborn, she faces deportation• What we know about the killings of a Cincinnati deputy and an 18-year-old who was shot by police• Warren Buffett to step down from Berkshire at year’s end, Greg Abel to succeed Oracle of Omaha The week ahead MondayThe Met Gala returns to the Metropolitan Museum of Art in New York, drawing a bevy of A-list celebrities for a night of exhibition-viewing, dinner and drinks. But first, they’ll walk the steps in what’s become one of the top red-carpet moments of the year. Here’s what you can expect during fashion’s biggest night out. Columbia University will announce the winners of the 2025 Pulitzer Prizes, awarded in the categories of journalism, books, drama and music. And it’s Cinco de Mayo, which is NOT Mexican Independence Day! That’s September 16. Cinco de Mayo commemorates the Mexican army’s victory over French forces at the Battle of Puebla on May 5, 1862. In the US, it’s mostly an excuse to drink margaritas on a Monday. WednesdayRoman Catholic cardinals from around the globe will gather at the Vatican to start the process of electing a successor to the late Pope Francis. Only cardinals under the age of 80 are allowed to vote in a papal election. It’s unclear when we’ll see the traditional white smoke signaling a new pope has been elected. The last two conclaves — held in 2005 to elect Pope Benedict XVI and in 2013 to elect Pope Francis — lasted two days. The Department of Homeland Security will begin requiring travelers to present a REAL ID as an accepted form of identification at TSA checkpoints after years of pushing back the deadline. Travelers have been scrambling to get their licenses changed to avoid disruptions in domestic travel plans this summer and into the holiday months. Passports are still an acceptable form of identification for both domestic and international air travel. Older, non-expired licenses are still valid for driving and other identification purposes outside of the federal travel requirements. The Federal Reserve will conclude a two-day meeting on interest rates, just days after President Trump renewed his attacks on Chairman Jerome Powell. At a rally in Warren, Michigan, marking the 100-day mark of his second term, Trump told the crowd, “Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job, but I won’t say that.” Trump’s comments are the latest in his line of attacks against Powell in recent weeks. ThursdayRussian President Vladimir Putin has declared a unilateral three-day ceasefire in Ukraine that will begin on May 8 — a move met with skepticism by Ukrainian officials who demanded the Kremlin leader immediately accept a longer truce proposal from the US that he has so far rejected. Moscow said “all military actions” in Ukraine would be suspended from midnight May 8 to midnight May 11, a decision which it said was based on “humanitarian considerations.” The truce would coincide with Russia’s World War II Victory Day commemorations on May 9 and the 80th anniversary of the defeat of Nazi Germany. Last month, the Kremlin proclaimed a 30-hour truce over Easter, which Kyiv cautiously agreed to. Ukraine’s military later accused Russia of violating that ceasefire with more than 2,900 attacks along the expansive frontlines. Moscow also accused Ukraine of breaking that truce. Photos of the week Under bright blue skies in St. Peter’s Square, tens of thousands of people flocked to the Vatican to say goodbye to Pope Francis on Saturday.The beloved pontiff, the first Latin American pope in history, died earlier in the week at the age of 88.The crowd included dozens of dignitaries, including heads of state and reigning monarchs.Francis was a “pope among the people, with an open heart towards everyone,” said Cardinal Giovanni Battista Re, the 91-year-old dean of the College of Cardinals who presided over the liturgy.After the bells of St. Peter’s Basilica tolled to mark the end of the service, the pope’s coffin was driven slowly through the streets of Rome to his final resting place at the Basilica di Santa Maria Maggiore. About 150,000 people lined the 6-kilometer (3.7-mile) procession route from Vatican City through Rome.Here are some of the stories that made headlines over the past week, as well as some photos that caught our eye. Check out more images from the week that was, curated by CNN Photos. What’s happening in entertainment TV and streamingFormer President Joe Biden will appear on ABC’s “The View” for his first interview since leaving the White House. He will be joined by former first lady Jill Biden for the live in-studio conversation at 11 a.m. ET on Thursday. The 60th Academy of Country Music Awards will air live on Prime Video and the Amazon Music channel on Twitch at 8 p.m. on Thursday. Country music icon Reba McEntire will host the show. On the big screenJosh Hartnett stars in the action comedy “Fight or Flight.” Basically, it’s John Wick on a jumbo jet. “Fight or Flight” lands in theaters Friday. What’s happening in sports At a glance …Sovereignty won the 151st running of the Kentucky Derby on Saturday at Churchill Downs Racetrack in Louisville, Kentucky. The next leg of horse racing’s Triple Crown will take place in less than two weeks at The Preakness Stakes in Baltimore, Maryland. In basketball, the NBA’s Eastern Conference Semifinals tip off today when the Indiana Pacers face the Cleveland Cavaliers. On Saturday, the Denver Nuggets beat the Los Angeles Clippers, with a 120-101 win, moving on to the Western Conference Semifinals. On the ice, the St. Louis Blues and Winnipeg Jets face off in Round 1 in Game 7 of the Stanley Cup playoffs tonight at 7 p.m. ET. Catch up on the latest at NHL.com. For more of your favorite sports, head on over to CNN Sports as well as Bleacher Report, which — like CNN — is owned by Warner Bros. Discovery. Quiz time! Looking for a challenge to start your week? Take CNN’s weekly news quiz to see how much you remember from the week that was! So far, 6.7% of readers who took the quiz got a perfect score and 35% got eight or more questions right. How will you fare? Play me off … ‘The Imperial March’As any member of the Rebel Alliance or the Galactic Empire will attest, today — the fourth day of May — is Star Wars Day! May the fourth be with you, always. (Click here to view)
Start your week smart: Student loan debt, Trump AI image, Met Gala, papal election, Cinco de Mayo
TruthLens AI Suggested Headline:
"U.S. Resumes Student Loan Collections Amid Financial Concerns and Key Events This Week"
CNN
7.4
TruthLens AI Summary
As the U.S. Department of Education prepares to restart the collection of federal student loans in default, borrowers are expressing significant anxiety over the financial implications. This marks the end of a pandemic-era pause that lasted approximately five years, affecting over 5 million individuals whose loans have gone into default after 270 days without payment. The change in policy comes amidst broader shifts in the Department of Education, as former President Donald Trump aims to dismantle the agency and roll back several student loan forgiveness initiatives established under President Joe Biden. Many borrowers fear that the resumption of hefty monthly payments could severely disrupt their financial stability, making it difficult to afford basic necessities such as food and housing. In addition, the government will resume the Treasury Offset Program, which allows for the garnishment of federal and state payments, including tax returns and Social Security benefits, to collect on these debts. This could lead to widespread financial distress, with estimates suggesting that more than 9 million borrowers may experience significant declines in their credit scores due to delinquencies, a situation reminiscent of the aftermath of the Great Recession when many Americans faced overwhelming debt levels.
Looking ahead, several significant events are scheduled for the week. The Met Gala, a highlight of the fashion calendar, will take place at the Metropolitan Museum of Art, attracting numerous celebrities for a night of glamour. Meanwhile, the Roman Catholic cardinals will convene at the Vatican to begin the process of electing a new pope, following the recent passing of Pope Francis. This papal conclave will determine the future leadership of the Catholic Church, with the election process expected to be closely watched globally. On the domestic front, as travelers prepare for summer, the Department of Homeland Security will implement stricter identification requirements at TSA checkpoints, mandating a REAL ID for domestic air travel. In financial news, the Federal Reserve will conclude a meeting focused on interest rates, amid ongoing tensions between President Trump and Fed Chairman Jerome Powell. These events, along with the ongoing developments in the political landscape and international relations, will shape the news cycle in the coming days.
TruthLens AI Analysis
The article provides a comprehensive overview of the current situation regarding student loan debt in the United States, particularly in light of the resumption of federal loan collections after a significant pause during the pandemic. It touches on several pressing issues, including the potential impact on borrowers, the political landscape surrounding education policies, and the broader implications for the economy.
Analysis of the Current Situation
The article highlights the anxiety and fear among over 5 million borrowers who are now facing the resumption of loan payments. The narrative surrounding student loans is particularly timely, as many Americans are still grappling with the economic fallout from the pandemic. The mention of President Trump’s actions to dismantle the Department of Education and alter student loan forgiveness policies adds a political dimension to the financial concerns outlined in the article.
Perceived Emotional Impact
The coverage emphasizes the emotional strain on borrowers, indicating that hefty monthly payments could disrupt their ability to afford basic necessities like food and housing. This portrayal fosters a sense of urgency and empathy, likely aiming to galvanize public discourse around the student debt crisis and the political actions affecting it.
Concerns About Transparency
The article alludes to the potential for borrowers' credit scores to plummet due to delinquencies, which could further exacerbate their financial struggles. This raises a question about whether there are underlying issues being obscured, such as the broader economic conditions that have led to increased debt levels among Americans.
Manipulative Aspects
In analyzing the manipulation potential, the article's focus on the emotional narratives and the political implications suggests a strategic framing that could sway public opinion. The language used evokes fear, which can be a powerful motivator for action or change.
Comparative Context
When compared to other news articles, this piece aligns with ongoing discussions about economic inequality and financial burdens faced by the middle and lower classes. There is a noticeable connection between this and other narratives focusing on economic distress, particularly in the context of rising interest rates and inflation.
Impact on Society and Economy
The resumption of loan payments could lead to increased financial strain for millions, potentially resulting in reduced consumer spending, which is crucial for economic recovery. The broader implications include a potential slowdown in economic growth if borrowers divert funds to pay off debts rather than engaging in discretionary spending.
Target Audience
This article is likely aimed at individuals affected by student loan debt, as well as those interested in education policy and economic issues. It resonates particularly with younger generations and those from lower-income backgrounds who are disproportionately affected by student debt.
Market Effects
The news about student loans may influence stock market behavior, particularly in sectors related to consumer goods and financial services. Companies that rely on consumer spending could see fluctuations based on how borrowers manage their finances post-loan resumption.
Geopolitical Relevance
While primarily focused on domestic issues, the article touches on broader themes of economic stability, which are relevant in the global context. Economic distress in one of the world's largest economies can have ripple effects internationally, influencing global markets and trade.
Use of AI in Reporting
There’s a possibility that AI tools were utilized in drafting or structuring the article, particularly in analyzing large datasets related to economic conditions and borrower demographics. AI models might have influenced the presentation of data concerning defaults and credit scores, aiming to deliver a more engaging narrative.
In conclusion, the article presents a significant concern regarding student loan debts and their implications. The emotional weight, political context, and economic ramifications all contribute to a narrative that seeks to inform and potentially mobilize public opinion on the issue of student debt.