Good morning! It’s Daniel de Visé with your Daily Money.
U.S. stocks plunged Monday, with the tech-heavy Nasdaq and broad S&P 500 posting their biggest one-day drop since September 2022, amid heightened risk of recession after President Donald Trump declined to rule one out.
Investors freaked out, essentially, after Trump refused to rule out a recession during a Fox News interview on Sunday.
Here’s how stocks are shaping up on Tuesday.
What happens now to student loans?
President Trump is expected to act soon on his promise to dismantle the federal Department of Education, the agency that supplies funding to public schools, enforces anti-discrimination laws and administers the Student Aid Program.
It also oversees federal student loans held by nearly 43 million people, or one in six American adults. Now, borrowers are wondering what a shutdown will mean for their loans and repayment plans.
Which states depend the most on federal funds?
Four southern states rank in the top five nationally for their dependence on federal dollars, according to a new report. And a very northern state, Alaska, is the most “federally dependent” in the union, according to WalletHub.
The report has currency in light of the Trump administration’s recent efforts to freeze federal funding to programs that do not align with the Republican agenda.
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About The Daily Money
Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.
Daniel de Visé covers personal finance for USA Today.
