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Missing Your August Child Tax Credit Direct Deposit Payment? This May Be Why



The IRS just began issuing the August Child Tax Credit payment last week, but the federal agency has already mailed out or directly deposited tens of millions of checks into bank accounts across the nation. Thus far, about 36 million American families have been on the receiving end of the payments from the second batch of monthly advance tax credits, which are worth about $15 billion in total.

The direct monthly payments, which are worth $250 to $300 per dependent, just began rolling out in July as part of President Joe Biden’s American Rescue Plan, but the money has already proven to be a big help to lower- and middle-income families across the country. A recent study showed that food insecurity and financial hardships decreased shortly after the July Child Tax Credit payment was issued — a trend that is likely to continue over the next few months.

But, while millions of households have already received their August tax credit payments, not every family has been so lucky. Some families who received direct deposit payments for July are now missing their August direct deposits, despite the IRS having their bank account information on file. The good news is that the issue isn’t permanent, and the money will be on the way in the near future. If you’re one of the families who’s missing their August Child Tax Credit payment, here’s what you should know.

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Why some families are missing their Child Tax Credit direct deposits

Most Child Tax Credit payments are made by direct deposit, though there are millions of paper checks issued by the IRS each month for the advance payment. If you received your July Child Tax Credit payment directly to your bank account, you likely expected to receive your August payment in the same way. But, that may not be the case this month.

Per the IRS, some families who received a July direct deposit for their payments will not be receiving a direct deposit payment for the month of August. These families will have to wait to get their payments by paper check, which comes via USPS, instead.

This issue, which was reportedly caused by a system glitch, affected about 15% of the people who were slated to receive direct deposit payments for the August Child Tax Credit money. So, if you’re wondering where your August payment is and you received your first payment by direct deposit, the glitch may be to blame.

The good news is that the issue appears to be temporary. If your bank account information is on file with the IRS, your payment for September should be made via direct deposit, just like it was in July. The bad news is that it can take a lot longer to receive your paper check, so if you were relying on the money to pay an essential bill or buy groceries, you may be looking at a much longer wait than normal.

It isn’t uncommon for paper checks to take an extra week or two to arrive in your mailbox after they’re issued. So, if you’re missing your direct deposit, be sure to keep an eye out for an envelope from the IRS, which will likely land in your mailbox by the end of the month.

Who receives the Child Tax Credit payments via direct deposit

Not sure whether you were supposed to receive your payment via direct deposit for August? You are typically slated to receive your Child Tax Credit payments by direct deposit if your bank account information is on file with the IRS. Your bank account information is updated with the IRS via your:

If your bank account information is not on file with the IRS by one of these three methods, you’ll likely get a paper check in the mail if you qualify.

How to track payments or update your information with the IRS

If you want to track your payment, you can use the IRS Child Tax Credit Update Portal to get information about where your money is — and whether your August payment has been issued. Note, though, that if you’ve created an IRS username or account in the past, you’ll need your login information to check on your payment. If you don’t have an account, you can create one on the login page.

If you are a non-filer and think you may qualify for the advance Child Tax Credit payments, you can use the IRS non-filer portal to make sure the IRS has your information on file. You’ll need to provide your name, mailing address, birth date, the Social Security number for you and your dependents (or your other taxpayer ID), and your bank account and routing information to the IRS to take advantage of the monthly payments.

If you had a loss of income recently or have added a new dependent to your household, you may also need to update the information on file with the IRS. You can do that via the non-filer portal. It’s important to make sure that the information on file with the IRS is up to date as it could affect your eligibility for the advanced payments or increase your monthly Child Tax Credit payment.

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Are Sallie Mae Student Loans Federal or Private?



When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances



Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit



Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.



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