How can you lower your bills and save? Try these mid-year money moves for your finances.
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4 Ways Trump’s ‘Big, Beautiful Bill’ Will Make College More Expensive
President Donald Trump’s “Big Beautiful Bill’ could reshape how millions of Americans pay for college. The bill proposes slashing the maximum Pell Grant award by nearly 23%, dropping it from $7,395 to $5,710 starting in the 2026 to 2027 school year. The required course load would jump from 24 to 30 credits per year, meaning students would have to take 15 credit hours per semester to receive the full award. These changes could disproportionately affect part-time students, working students and community college students, who often balance jobs and caregiving responsibilities with school. These caps mean that students who reach the limit before completing their degrees will be forced to turn to private loans, which often come with higher interest rates, fewer repayment protections and less flexibilitythan federal loans. The House would cap graduate borrowing at $100,000 total (or $150,000 for professional degrees). At the same time, the Senate allows a higher cap of $200,00 for professional programs but maintains the current undergraduate caps.
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President Donald Trump’s “Big Beautiful Bill” could reshape how millions of Americans pay for college.
Among its most controversial changes are deep cuts to Pell Grants, the elimination of subsidized student loans, and the introduction of lifetime borrowing caps for both students and parents — primary pathways that make college more affordable for individuals and families.
While the changes are designed to reduce federal spending, here are fourways Trump’s “Big Beautiful Bill” will make college more expensive.
Higher Out-of-Pocket Costs
The bill proposes slashing the maximum Pell Grant award by nearly 23%, dropping it from $7,395 to $5,710 starting in the 2026 to 2027 school year. That’s nearly $1,700 less per year that low-income students can use to cover tuition, fees and living costs, leaving families to either borrow more or pay out of pocket.
It also makes Pell Grants harder to qualify for. The required course load would jump from 24 to 30 credits per year, meaning students would have to take 15 credit hours per semester to receive the full award. Students enrolled less than half-time would lose access altogether.
Experts said these changes could disproportionately affect part-time students, working students and community college students, who often balance jobs and caregiving responsibilities with school.
“Increasing the credit hour requirement from 12 to 15 for Pell Grant eligibility will affect 25% or more of students at community colleges and technical schools,” said Tom O’Hare, a college planning coach at Get College Going.
“Extending the credit hours will lower access to financing resources, resulting in an extended timeline to complete their programs, a double financial hit for a family or individual.”
Loan Caps Push Students to Private Debt
The bill would impose lifetime borrowing caps on federal student loans: $50,000 for undergraduate students, $100,000 for graduate students and up to $150,000 for professional students,such as those in law or medical school.
These caps mean that students who reach the limit before completing their degrees will be forced to turn to private loans, which often come with higher interest rates, fewer repayment protections and less flexibilitythan federal loans.
The House and Senate versions differ slightly. The House would cap graduate borrowing at $100,000 total (or $150,000 for professional degrees). At the same time, the Senate allows a higher cap of $200,000 for professional programs but maintains the current undergraduate caps ($31,000 for dependent students and $57,500 for independent students).
“Families would need to look outside direct loan options, which could mean more borrowing in the private market,” said Jonathan Sparling, a director at CollegeWell, an educational platform that helps families plan and save for college.
According to the U.S. Department of Education, “private student loans can have variable or fixed interest rates, which may be higher or lower than the rates on federal loans depending on your circumstances.”
Higher Borrowing Costs
The bill proposes eliminating subsidized federal loans for undergraduates, a key benefit that currently keeps borrowing costs lower.
Right now, subsidized loans don’t accrue interest while a student is in school, during grace periods, or in deferment, effectively saving borrowers hundreds or even thousands of dollars.
“In practical terms, the elimination of the interest subsidy would mean immediate accrual of interest after loan disbursement, adding to total costs,” Sparling said.
This would directly increase the total amount students owe over the life of the loan. In addition, without this subsidy, students would leave school owing more than they do now before even making their first payment.
Paying More Over Time
The legislation would scrap current repayment options and replace them with just two: A standard fixed-payment plan and a new income-driven plan called the Repayment Assistance Plan (RAP).
Under RAP, borrowers would pay 1% to 10% of their income, with a minimum monthly payment of $10. While this may lower monthly payments for some, it extends the repayment timeline: Loan forgiveness wouldn’t kick in until after 30 years of payments, compared to 20 or 25 years under many current plans.
Dan Rubin, CEO of Yelo Funding, said income-driven repayment plans like SAVE (Saving on a Valuable Education) and PAYE (Pay As You Earn) have allowed millions of borrowers to manage their loan repayments. Getting rid of those options may negatively affect how people fund their education.
“Ending those options would remove the only federal safeguard that adjusts repayment to earnings,” Rubin said. “Faced with the prospect of higher debt and fewer repayment protections, many students will be forced to delay, forgo or abandon their graduate studies altogether.”
Editor’s note: An earlier version of this post included a quote noting eliminating income-driven repayment plans allowed borrowers to manage their repayments. It’s been updated to state how these plans benefit borrowers and the impact if they’re eliminated with upcoming legislation.
9 States With No Income Tax: Will You Save Money?
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Moving to a state with no income tax may seem like a smart money move, but other factors such as cost of living, local taxes and job opportunities should also be considered.
Tax experts advise looking at the whole picture and not basing your decision solely on taxes when deciding to move to a different state.
Burned by hot inflation and a steep cost of living over the past few years, many Americans have fled high-priced cities for more affordable places to call home.
One criterion some have used to select their new location: income taxes (or the lack thereof). Nine states exclude all or most of their residents’ income from taxation:
Eight states charge no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. (New Hampshire used to tax dividend and interest income, but repealed that tax effective Jan. 1, 2025.)
Washington taxes long-term capital gains income for high earners. For any capital gains that exceed the state’s $270,000 standard deduction (that’s the amount for tax year 2024), you’ll face a 7 percent tax rate. But there are plenty of exceptions; for example, capital gains from real estate are excluded from this tax.
Income-tax-free Texas and Florida were the two most popular states where Americans moved in 2023, according to the most recent data on state migration patterns by the U.S. Census Bureau. Some 7.6 million people, or more than 2% of the U.S. population, moved in total.
But while moving to one of these tax-friendly states might seem like the ultimate way to reduce your expenses, you might not always save money in the long run.
For starters, states collect revenue through levies on more than just income, such as sales and property taxes. Plus, other considerations — including proximity to family as well as the local job and housing markets — may need to take precedence over taxation, tax preparers and wealth planners interviewed by Bankrate say.
“It’s nice not having taxes taken out of a paycheck, but you can’t look just at the income tax,” says Lisa Featherngill, senior vice president and national director of wealth planning at Comerica Wealth Management. “You have to look at the real estate tax, the sales tax, and then the other taxes that you’re going to pay to the state or county where you’re going to live.”
State taxes: It’s not just about income tax
Fully seven of the top 10 states on the Tax Foundation’s 2025 list of most competitive states for taxes are states that don’t levy an income tax. But there are some interesting anomalies:
There are two no-income-tax states that aren’t on that “most competitive” list: Washington and Nevada. While Nevada is fairly close to the top at No. 17, Washington is at the other end of the Tax Foundation’s list, landing as one of the 10 least competitive tax states, partly because of its relatively high corporate and sales taxes.
There are three states that do levy an income tax yet still landed in the top 10 for most-tax-competitive: Indiana, Montana and North Dakota. Read the Tax Foundation’s 2025 list of most tax-competitive states.
Taking a step back from taxes, a broader measure of affordability is overall cost of living. The Council for Community and Economic Research, or C2ER, looked at the 10 best states for cost of living, which includes taxes but also housing, utilities, health care and other costs.
Of the 10 states that win on C2ER’s cost-of-living measure, only one — Tennessee — is a no-income-tax state. Here is C2ER’s list of top 10 states for lowest cost of living: West Virginia, Oklahoma, Kansas, Mississippi, Arkansas, Alabama, Missouri, Iowa, Tennessee and Nebraska.
While many states that don’t have an income tax do have lower tax burdens, that’s not true for all no-income-tax states. Here’s what you need to know about the nine states with no income tax, including the competitiveness of each state’s tax structure, according to the Tax Foundation’s annual study.
Alaska
Alaska ranks third for tax competitiveness, according to the Tax Foundation, in large part because it has no income tax or state-level sales tax (local areas are still allowed to charge sales tax). However, its remote location can make the state a more expensive place to live, and it boasts one of the highest corporate tax rates in the country (a maximum of 9.4 percent).
Overall rank (from most to least competitive out of 50): 3
Property tax rank: 30
Sales tax rank: 5
Gas tax rank: 1
Florida
Florida is a popular tax and retirement haven, but high home prices and insurance costs have led to state-wide affordability constraints. In October, the median price of a single-family home in the state, for example, was $433,600, according to data from Redfin. That’s almost 8.8 percent higher than the national median for an existing home. In the absence of an income tax, the state relies on sales taxes and property taxes. Some household essentials, however, are excluded from taxation, such as groceries.
Overall rank (from most to least competitive out of 50): 4
Property tax rank: 21
Sales tax rank: 14
Gas tax rank: 39
Nevada
Nevada’s treasury collects much of its revenue from above-average sales taxes and fees. With a tourism-driven economy, however, out-of-state visitors may end up bearing the brunt of those costs.
Overall rank (from most to least competitive out of 50): 17
Property tax rank: 7
Sales tax rank: 40
Gas tax rank: 11
New Hampshire
New Hampshire doesn’t tax wage income and it has no sales tax. Through tax year 2024 it collected taxes on interest and dividend income, but the state ended that tax effective January 2025. Meanwhile, the state has one of the highest property tax rates in the country (1.61 percent).
Overall rank (from most to least competitive out of 50): 6
Property tax rank: 39
Sales tax rank: 1
Gas tax rank: 12
South Dakota
Not only does South Dakota not collect income taxes, but its state sales tax rate is 4.2 percent, among the lowest in the country. But municipalities can collect another 1 to 2 percent on top of that, capping off the combined state and average local sales tax rate at 6.11 percent.
Overall rank (from most to least competitive out of 50): 2
Property tax rank: 10
Sales tax rank: 31
Gas tax rank: 26
Tennessee
Tennessee residents don’t have to pay state taxes on their wages. The Volunteer State used to tax dividends and interest in a levy known as the “Hall Tax,” but that was phased out for the 2022 tax year. However, Tennessee has one of the highest state and local sales tax rates in the country at a combined 9.55 percent.
Overall rank (from most to least competitive out of 50): 3
Property tax rank: 33
Sales tax rank: 47
Gas tax rank: 20
Texas
Texas doesn’t have an income tax, but it does levy a state sales tax of 6.25 percent. Local jurisdictions can levy up to 1.95 percent in additional taxes, for a combined rate of 8.2 percent. Texas also has a high property tax rate of 1.47 percent.
Overall rank (from most to least competitive out of 50): 7
Property tax rank: 40
Sales tax rank: 36
Gas tax rank: 7
Washington
Washington doesn’t charge an income tax, but it levies a 7 percent tax on capital gains for high earners (taxpayers can exclude up to $270,000 in gains for tax year 2024; that standard deduction adjusts for inflation each year). A 6.5 percent state sales tax combined with the average local sales tax rate results in a combined tax of 9.38 percent. Washington also has the third-highest median single-family home price in the country, at $658,700, 65 percent higher than the nationwide median price for an existing home.
Overall rank (from most to least competitive out of 50): 45
Property tax rank: 25
Sales tax rank: 50
Gas tax rank: 47
Wyoming
In addition to not charging an income tax, Wyoming doesn’t charge corporate levies, nor estate or inheritance taxes, making it the most tax competitive state in the U.S. It has a 4 percent sales tax and an average local sales tax of 1.44 percent, for a combined state and local tax rate of 5.44 percent.
Overall rank (from most to least competitive out of 50): 1
Property tax rank: 44
Sales tax rank: 7
Gas tax rank: 13
Should you move to a state with no income tax?
Mark Steber, chief tax information officer at Jackson Hewitt, moved to a state without an income tax: Florida. Initially, he liked the extra 3 to 4 percent per paycheck. He also enjoyed paying less for gas and saving on groceries. Then, his car and home insurance came due. “I thought, ‘Great goodness, what the heck?’” Steber says. “Income taxes are your largest single financial transaction each and every year, so it’s an important factor to pay attention to, but it’s not the one deciding factor if you’re making good decisions. Taxes never work the way you think they will.”
If you’re trying to determine whether moving to a state with no income tax is financially worth it, start by taking a look at your most recent tax return. Calculate how much you paid in state income taxes (some states have a flat rate, while others have a graduated rate) and determine your effective income tax rate. Then, compare that total with what you would be paying in the state where you wish to move.
Typically, higher-income earners and retirees can stand to save, Featherngill says. She’s also seen clients consider timing a move to a lower-tax state with a major financial event, such as selling a business or an asset.
But taxation never gives you the full picture, both Steber and Featherngill say. Compare the property tax and sales tax rates of both locations, along with cost-of-living considerations, such as housing and food. Moving costs or locking in a new mortgage in a high-rate era can also add up.
“If property taxes are so high on my house and I have to move and buy something, that might be more expensive, and I might not be in as good a situation as I think,” Featherngill says. “The personal issues become as dominant as the tax issues.”
Family considerations might matter as well. Road trips and plane tickets can quickly add up if you’ll be traveling home to visit loved ones.
Steber, who moved solely because he was transferred for work, also recommends looking into the local job market. If you lose a job and your local area doesn’t have many gigs in your industry, it might be harder to find new work.
“If someone says to me, ‘I’m moving to Texas. It’s free income down there.’ I say, ‘Well, how are you going to live? Are you going to work?’” Steber says. “No income tax can quickly be offset by no job.”
Bottom line
If you’re a retiree, a high-income earner or living in a state that has a high cost-of-living and tax burden, you might stand to save by moving to a tax-friendly state, though be wary about making taxes the sole reason for your move.
“You have to look at the whole picture,” Steber says. “Start with your own simple analysis and have a tax pro kick the tires. Taxes are simply never a reason to make a total financial decision.”
How Smart Entrepreneurs Turn Mid-Year Tax Reviews Into Long-Term Financial Wins
Take these four steps to set yourself up for financial success at the end of the year and beyond. Carve out a day or a few afternoons to look at these four areas, then schedule a meeting with your tax advisor. Take a few hours to revisit your numbers, check for missed opportunities, and talk strategy could save you thousands — and set your business up for a stronger finish to the year. The tax code is full of incentives designed to reward entrepreneurs. That’s not a loophole — it’s a signal: the government wants you to grow, because you create jobs and fuel the economy.. Find an entrepreneurial advisor who can help you build a lasting, proactive strategy — someone who acts as a true financial partner, not just a form-filler, not a CPA. The most lucrative move you make all year is a mid-year review.
Opinions expressed by Entrepreneur contributors are their own.
We’re halfway through the year. The plans you set in motion back in January are hopefully moving along — and let’s be honest, the sunshine is calling. For most entrepreneurs, tax planning won’t resurface until the year-end scramble or next spring’s filing season.
But if you’re serious about improving your financial picture, now is the time for a mid-year tax strategy check-in. It doesn’t have to eat up your summer. Carve out a day or a few afternoons to look at these four areas, then schedule a meeting with your tax advisor. You might be surprised how far a little mid-year focus can take your business — and your finances.
Related: 5 Tips for Finding the Tax Advisor Who Will Save You Millions
1. Know your numbers
You can’t improve what you don’t understand. Start by reviewing your core financial metrics — revenue, expenses, cash flow and customer acquisition costs. Compare these to your business plan. Are you on track? Are there red flags or overlooked opportunities?
Also, come prepared to your advisor meeting with a clear estimate of your taxable income and projected tax liability. The last thing you want is a nasty surprise in April.
2. Maximize your deductions
Running a business comes with plenty of expenses — and many of them are deductible. That means they reduce your taxable income and, ultimately, your tax bill. It’s the government’s way of incentivizing reinvestment into your business.
Common deductible expenses include:
A reasonable salary for yourself
Travel related to business
Equipment, software, and other depreciable assets
Home office expenses
Continuing education
To prepare, make a list of your 2025 business expenses so far, plus projected spending through year-end. Then ask:
Is there a clear business purpose?
Is this a typical expense in your industry?
Is it necessary (i.e., does it drive profit or growth)?
Do you have proper documentation?
Bring any questionable items to your advisor for clarification. There could be savings you’re missing.
3. Explore available tax credits
While deductions reduce your taxable income, tax credits reduce your tax bill dollar-for-dollar — and in some cases, can even increase your refund.
Ask your advisor if you’re eligible for any of these common credits:
Providing child care for employees
Offering paid family and medical leave
Using individual-choice HRAs
Creating jobs in economically distressed areas
Investing in research and development
Tax credits are often underutilized, and a knowledgeable advisor will help you take full advantage of them.
Related: Why Mid-Year Tax Reviews Are a Must for First-Time Entrepreneurs
4. Think beyond this year
Yes, this review should help lower your 2025 tax bill. But the bigger win is long-term planning. Use this mid-year moment to zoom out: Are you building a system for long-term, tax-efficient wealth? Are you investing in ways that align with your growth strategy and the broader economy?
The tax code is full of incentives designed to reward entrepreneurs. That’s not a loophole — it’s a signal: the government wants you to grow, because you create jobs and fuel the economy.
So don’t settle for a CPA who just files your paperwork. Find an entrepreneurial advisor who can help you build a lasting, proactive strategy — someone who acts as a true financial partner, not just a form-filler.
A mid-year review could be the most lucrative move you make all year Taking a few hours to revisit your numbers, check for missed opportunities, and talk strategy could save you thousands — and set your business up for a stronger finish to the year. More than that, it helps you lead with clarity, confidence, and control over your financial future.
Breaking down Trump’s ‘Big Beautiful Bill’ and its impact on the deficit and national debt
The Congressional Budget Office says, the tax cuts in this bill add up to $3.7 trillion. That’s good news, in that that’s money taxpayers could keep, but it’s also bad news because it comes out of the federal budget and potentially could add to deficits. The money saved from the cuts, the spending cuts, is $1.3 trillion.
Right.
For Republicans, this is part of answering what they see as a potential crisis, the end of the Trump tax cuts. The question is, is this something that adds to a different potential crisis, an American debt crisis?
So let’s look at the money flow in this bill, and let’s start with the tax cuts. First of all, Republicans are in fact adding some new tax cuts here. Those are the no taxes on tips, overtime, some benefits for seniors. These tax cuts are significant. However, they pale in comparison to the biggest cost in the bill. That is extending those Trump tax cuts.
All together, the Congressional Budget Office says, the tax cuts in this bill add up to $3.7 trillion. That’s good news, in that that’s money taxpayers could keep, but it’s also bad news because it comes out of the federal budget and potentially could add to deficits.
So did Republicans pay for this in the bill? According to CBO, no. The money saved in this bill from the cuts, the spending cuts, is $1.3 trillion. Now, this is a significant, historically large number of spending cuts, health care cuts, we have been talking about Medicaid, green energy, student loans. This is a big number, but it is much smaller than the amount being spent here.
So, overall, Congressional Budget Office says, this bill would add $2.4 trillion to the deficit, and that is even before you consider interest costs.
Student loan borrowers could see payments spike under Trump’s ‘big, beautiful’ bill: ‘People are panicking right now’
The GOP spending bill will cut down a handful of repayment options to just two: the Repayment Assistance Plan or the standard plan. The most drastic change is the end of the SAVE plan, which is used by millions of low- and middle-income Americans in debt. The new standard plan will give borrowers a fixed monthly payment to have their loans paid off between 10 to 25 years, depending on the size of the loans. But unlike SAVE, this new plan does not use a payment cap, meaning many could end up paying a higher cut of their income than they previously did. The changes are still up in the air, as the budget – which narrowly passed the Senate Tuesday – heads to the House for final approval, which Trump is expecting on his desk by a self-imposed Fourth of July deadline.
Changes under the GOP spending bill will hit borrowers taking out loans next summer and any point after – as well as the 8 million Americans stuck in limbo on the Biden-era SAVE plan, also known as Saving on a Valuable Education, which has been on a repayment pause for a year.
Under the proposed budget, which is awaiting final approval in the House, a typical borrower will see their monthly student loan payments jump by hundreds of dollars, according to an analysis from research nonprofit Student Borrower Protection Center.
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3 Sens. John Barrasso, John Thune and Mike Crapo speak to reporters following the budget approval on Tuesday. AP
“People are panicking right now. I am getting the calls, the emails from friends and family members to strangers. People are naturally really super scared,” Erica Sandberg, consumer finance expert at BadCredit.org, told The Post.
The most drastic change is the end of the SAVE plan, which is used by millions of low- and middle-income Americans in debt. Monthly payments for this plan are calculated as 10%, 15% or 20% of a borrower’s discretionary income.
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Its Trump-era replacement, the Repayment Assistance Plan or RAP, will calculate monthly costs as between 1% to 10% of a borrower’s discretionary income.
That might sound like an improvement – but unlike SAVE, this new plan does not use a payment cap, meaning many could end up paying a higher cut of their income than they previously did.
“There’s some misinterpretation of who is in those low-income budgets,” said Sandberg, adding that her sister, a college professor with knowledge of the financial system, used the SAVE plan and now has to pivot or foot a higher bill.
The only other option for borrowers if the GOP bill passes would be the standard plan, which already exists but will see some tweaks.
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The new standard plan will give borrowers a fixed monthly payment to have their loans paid off between 10 to 25 years, depending on the size of the loans.
3 The GOP spending bill will leave borrowers with two options: the Repayment Assistance Plan or the standard plan. REUTERS
The current standard plan uses a 10-year period, regardless of loan size.
“Now you actually do have an option with those standard plans,” Sandberg told The Post, though she warned borrowers to use caution when selecting a repayment plan.
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“The one that offers the lowest payments may not be to your financial benefit. Are you going to be in debt for twice the amount of time and more than twice the amount in finance fees?”
Borrowers will also lose the ability to petition for their remaining balance to be waived after 25 years under the new plans, Sandberg said.
3 President Trump, accompanied by House Speaker Mike Johnson, speaks to reporters in May. Getty Images
But these changes are still up in the air, as the budget – which narrowly passed the Senate Tuesday – heads to the House for final approval, which Trump is expecting on his desk by a self-imposed Fourth of July deadline.
In the meantime, borrowers should focus on keeping their accounts in good standing. That means working with a lender on forbearances or deferments if it’s impossible for you to make payments on time, Sandberg said.
Fearful student loan borrowers should use calculators, like the government’s loan simulator on studentaid.gov, and “try to fit your budget within the most feasible and affordable plan for you,” she said.