The pandemic-related pause on student loan payments is ending, and as Wisconsin borrowers resume efforts to chip away at their balance, they're urged to explore a new income-driven federal plan to lower their monthly bills.

Federal officials say more than four million Americans have already signed up for the program known as SAVE, which bases a borrower's repayment amounts on discretionary income. To date, more than 70,000 Wisconsinites are enrolled. The Biden administration said it will eliminate some debt completely, and others could save as much as 40% a month.

Robert Farrington, founder of The College Investor website, said it is aggressive in helping those overwhelmed with debt.

"There have been income-driven repayment plans for the last 15 to 20 years," Farrington pointed out. "However, none of them have offered payments this low, at 5% of your discretionary income."

Wisconsin officials noted if your debt is eventually forgiven, that portion of the balance would be considered taxable income. Payments are scheduled to resume in early October after a three-year hiatus. The Biden program was recently announced after a separate student loan-forgiveness plan was struck down by the U.S. Supreme Court. Opponents of the initiative have said it will burden taxpayers.

While roughly four million people have signed up, the Biden administration said more than 20 million could benefit altogether. Farrington added awareness might be an issue given all the student loan activity right now.

"Student loan repayments are just starting right now, and there's a lot of information coming at borrowers," Farrington cautioned. "Digesting it all, figuring out the best course of action, is very hard."

Another feature of the SAVE program is, for those who make their monthly payment, their loan balance will not grow due to unpaid interest. Certain elements of the initiative are being phased in. The website StudentAid.gov has details on which loans are eligible, and which are not.


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On this May Day, Wisconsin groups are rallying in Green Bay to highlight a key issue facing the working class: the ability to retire.

Organizers see fixing systemic issues within Social Security as a key step. The American Federation of Government Employees is co-leading demonstrations around the state, calling on Congress to fully fund Social Security.

Jessica LaPointe, president of the American Federation of Government Employees Council 220, said although the debate has been around for a while, the problems run deep right now, with chronic underfunding resulting in staffing woes at field offices.

She noted staffers are dealing with added stress and beneficiaries feel the impact.

"Service delays are far and wide," LaPointe observed. "It could take more than four months to start your retirement benefits up."

She emphasized it is especially concerning for vulnerable populations at retirement age. Beyond helping with administrative costs, demonstrators want federal lawmakers to come up with long-term funding solutions, amid predictions the program won't be able to provide full benefits a decade from now. Some Republicans have routinely floated cuts but critics of the idea say any future shortfalls should be covered by higher earners.

One recommendation is to adjust the cap on Social Security taxes, but opponents warn of unintended consequences.

Alex Brower, executive director of the Wisconsin Alliance for Retired Americans, which is also supporting the rallies, said retirees on fixed incomes deserve full and expanded benefits for dedicating their working lives to propping up the economy.

"We wouldn't have the schools that we have or any of the systems in our economy without working people," Brower pointed out. "When those working people retire, we are demanding that retirement be dignified."

He added May Day observances, which center around worker solidarity, are a good way to remind policymakers the working class should not fall into poverty when they retire. Similar rallies are scheduled throughout the month.

Proposed regulations in Michigan could have a major impact on the state's tourism industry. The series of 10 bills introduced by House Democrats would do more to regulate short-term rentals.

The proposals include a 6% tax on rentals of 15 days or more, increased safety requirements for things like smoke alarms and carbon monoxide detectors, and a $100 annual registration fee per listing.

Erika Farley, executive director of the Rental Property Owners Association of Kent County, said she has concerns - especially about the additional tax.

"We are looking for more parity along with the hotel industry, basically," said Farley. "The 6% excise tax, along with the other taxes, would actually be a higher tax - anywhere between 5% and 7% for short-term rentals - than it would for an actual, traditional hotel."

Farley added that short-term rentals aren't just for tourists - they're also an affordable option for professionals who need a temporary place to stay while in town on business.

In New Buffalo, a lakefront community with a population of about 1,800, Mayor John Humphrey said he doesn't agree with every aspect of the bills - but he's all for taxing short-term rentals.

Humphrey said his community has suffered for year due to what he calls the "gigantic" unrecovered tourism costs generated by these rentals - including negative affects on roads, sewer, water, and other public infrastructure.

"Every short-term rental has a residential use of 10 - residential use means the number of people that use the home - where a standard residence is only 2.2," said Humphrey. "And those costs are not recovered because there are no excise taxes, there are no use taxes, there are no lodging taxes on short-term rental."

If passed, the legislation could generate between $35 and $70 million. Backers say that money would be distributed to the local governments where the rental properties are located.

The bills have been referred to the Committee on Local Government and Municipal Finance.

Minnesota lawmakers are considering a measure which would force employers to properly classify certain trade union workers and others as employees rather than independent contractors.

The bill aims to ensure worker's rights to overtime, minimum wages, safe workplaces and other benefits are protected.

Richard Kododziejski, director of government affairs for the North Central States Regional Council of Carpenters, said fraud and wage theft is rampant among certain employers.

"It maximizes the ability to fight employer misclassification fraud in Minnesota," Kododziejski stressed, as he explained the union's support for the measure. "While it was already illegal to misclassify employees, the law was not as strong as this bill will make it."

Versions of the bill have been filed in both the Minnesota House and Senate. Kododziejski noted both measures have cleared relevant committees and he expects them to go to a floor vote next week.

Kododziejski emphasized while misclassifying employees has always been illegal in Minnesota, the new law would give state regulators a stronger hand in dealing with bad actors.

"The Department of Labor and Industry has not had the ability to enforce it to the extent that they would through this piece of legislation," Kododziejski pointed out. "It levels the playing field for honest contractors who are not cheating the system and are properly treating their workers as employees."

Kododziejski observed when workers are improperly misclassified as independent contractors, it deprives them of overtime, minimum wages, safe workplaces and other benefits. He believes the bill will make it too expensive for employers to cut corners on paying their employees.

"Significant elements of this bill provide large fines to employers that definitely is steeper than what we've seen in the past," Kododziejski added. "When you say, well, why can't they make a dent in this? Why can't we stop this once and for all?"