
Loading summary
WIX Advertisement
It's time to turn your daydream into your dream job. WIX gives you the power to turn your passion into a moneymaker with a website that fits your unique vision and drives you towards your goals. Let your ideas flow with AI tools that guide you, but give you full control and flexibility. Manage your business from one dashboard and keep it growing with built in marketing features. Get everything you need to turn your part time passion into a full time business. Go to wix.com pay back federal student.
David Brancaccio
LOANS or else starts Monday. I'm David Brancaccio in Los Angeles. First, the jobs report is in. And while it was better than low expectations, hiring in the month just ended was less than in March. Still, 177,000 more people were on payrolls in April. The unemployment rate holds steady at a quite low 4.2%. Christopher Lowe, chief economist at FHN Financial, joins us now. Given the whiplash of trade policy and cuts to the federal workforce, the report is not bad. Chris?
Christopher Lowe
Yeah, I think that's about right. It's not good either, though. And I think it is important to note that there's a few things that have been percolating this year, continued in April, people clearly frozen in terms of hiring and probably in terms of expansion as well while they're trying to figure out the economic environment. And then, of course, government hiring, while it's not as weak as you might expect given federal layoffs, those layoffs are evident to some extent as well.
David Brancaccio
What does this mean for the people who have to decide on interest rates next week?
Christopher Lowe
Yeah, I tell you, the market reaction was interesting. Market interest rates rose and the logic there is that for the Fed, which is worried both about an economic slowdown is and a pickup in inflation because of the tariffs, this sort of tips the balance in favor of worrying about inflation. So the market expects that's the emphasis the Fed will put on next week.
David Brancaccio
All right. We shall see. Christopher Lowe at FHN Financial, chief economist there. Thank you.
Christopher Lowe
Thank you, David.
David Brancaccio
The U.S. department of Education will resume action against student loan borrowers who are in default. Collections start this Monday. Marketplace's Nancy Marshall Genzer joins us now.
Nancy Marshall Genzer
A little background here. First, David. We're only talking about federal student loans, that is loans funded by the federal government, not private loans. The first Trump administration paused federal student loan payments at the start of the pandemic. President Joe Biden extended those pauses repeatedly, but most borrowers were required to restart payments again in 2023. The Education Department says, though more than 5 million borrowers are now in default that is, they haven't made a monthly payment in over 360.
David Brancaccio
Now, the government says it hasn't collected on those loans since the first march of the pandemic. But what changes exactly? Three days from now, the Treasury Department.
Nancy Marshall Genzer
Will start withholding money from government payments like tax refunds, and starting early this summer from Social Security payments. The Education Department will start sending wage garnishment notices. This summer, the government can order your employer to withhold up to 15% of your paycheck as repayment of your student loan.
David Brancaccio
We like to keep it practical on this program. Nancy Wright, what can people do today and over the weekend to prepare for Monday?
Nancy Marshall Genzer
Well, the Education Department says you can enter into a payment agreement or rehabilitate your loan, which means making nine on time monthly payments. You can also consolidate your defaulted federal student loans into a direct consolidation loan that can have a longer repayment period. But be careful, you may end up with a higher interest rate and wind up paying more in the end.
David Brancaccio
Nancy, thank you. The Delta blues infused vampire film Sinners, starring Michael B. Jordan, keeps raking it in after bringing in more money at the box office in its first weekend of any film since before the pandemic. Its second weekend was almost as strong. A rare achievement for a business program like this. Let's focus here on the rare deal that Center's director Ryan Coogler won from the studio. I want to consult Dan Runcy. He's founder of the media research firm Trapital, which analyzes the intersection of business and culture. Good morning.
Dan Runcy
Morning. Thanks for having me.
David Brancaccio
The idea was to get people into real theaters. I don't know if you saw this 10 minute video in which the director, Mr. Coogler himself makes the pitch. Here's a little piece for select sections.
Ryan Coogler
Of the film, sections of emotional intensity, musical intensity or horror intensity. We chose to film those sequences with a bigger aspect ratio and the film will pop out and expand for those moments. Be a really, really immersive way to watch the movie.
David Brancaccio
That's part of this, getting people not to wait for streaming, getting them into theaters, and it seems to be working right.
Dan Runcy
That 10 minute clip was some of the best marketing that you can possibly do for a movie like this. Coogler is someone that a lot of people have season tickets to. He's a director that can bring in box office. He's done this with franchises, his own original IP as well. So people were really excited about Sinners.
David Brancaccio
The director has set up for himself a very interesting deal worth remarking upon because most directors don't get this. He starts to earn money when the first ticket is sold. He doesn't have to wait.
Dan Runcy
That's right. There's three things that make Coogler's deal stand out. First, as you mentioned, he has first dollar gross. So he starts making from the first dollar that comes in, which is very different from most directors where even some of the higher profile names, maybe they'll get their money after the theaters or other distributors get their cut or back end profits. But no, he's getting first dollar cut there. He's also getting final cut on the actual film itself. That's something that not all directors get and the rights revert back to him after 25 years.
David Brancaccio
So do you think the deal that Ryan Coogler has gotten for this film makes studio executives uncomfortable?
Dan Runcy
Whether it makes studio executives uncomfortable, I can't necessarily speak to, but I can say that it doesn't necessarily stand out from the unique deals that other top directors get. If you dig into the numbers that James Cameron has gotten for films like Avatar, what Nolan got for Oppenheimer, even some of Spielberg's stuff, or specifically Quentin Tarantino with Once Upon a Time in Hollywood, if you're a director at that level, these type of deals become table stakes. And I do think that Ryan Coogler, especially for someone that says, successful as he is, his movies have brought in over $2 billion thus far into his career. That's the level that he's at.
David Brancaccio
Dan Runcy is founder of the media research firm Trapital. T R A P I T A L Dan, always good to catch up.
Dan Runcy
Likewise, always great to be here.
David Brancaccio
And when you see sinners. Wunmi Mosaku playing the character Annie. Amazing you will see. In Los Angeles, I'm David Brancaccio. Marketplace Morning report from APM American Public Media.
Jannelli Espinal
If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Jannelli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined wherever you get your podcasts.
Marketplace Morning Report Summary Episode Title: Education Department to Go After Student Loan Defaulters Release Date: May 2, 2025
In this episode of Marketplace Morning Report, host David Brancaccio delves into critical updates on the U.S. job market, the Education Department's renewed efforts to collect on defaulted student loans, and an insightful discussion on the unexpected box office success of the film Sinners. The episode offers a comprehensive overview of these topics, enriched with expert opinions and notable quotes to provide listeners with a clear understanding of the current economic and cultural landscape.
Overview: David Brancaccio opens the episode by discussing the latest jobs report, which reveals that while the employment numbers exceeded low expectations, the growth in hiring has slowed compared to March. Specifically, April saw an addition of 177,000 jobs, with the unemployment rate remaining steady at a low 4.2%.
Expert Insight: Christopher Lowe, Chief Economist at FHN Financial, joins the conversation to interpret the implications of the report.
Notable Discussion:
Hiring Trends: Lowe emphasizes that the job market shows signs of stagnation, with hiring and expansion activities "frozen" as businesses navigate a fluctuating economic environment (01:02).
Federal Workforce Cuts: He also highlights the impact of federal layoffs, noting that government hiring remains weaker than expected due to ongoing reductions in the workforce (01:02).
Interest Rate Decisions: When questioned about the potential effects on Federal Reserve interest rate decisions, Lowe explains that rising market interest rates suggest the Fed may prioritize combating inflation over mitigating economic slowdown (01:40).
Key Takeaway: Despite a robust unemployment rate, the slowing pace of job growth and cautious hiring practices indicate underlying economic uncertainties that may influence future monetary policies.
Overview: The Education Department is set to intensify its collection efforts against federal student loan borrowers who are in default. This move marks a significant shift after a prolonged pause in enforcement actions that began during the pandemic.
Key Points:
Scope of Action: The focus is exclusively on federal student loans, excluding private loans. Over 5 million borrowers have fallen into default by not making a monthly payment in over 360 days (02:25).
Reinstated Collections: Starting the following Monday, the Treasury Department will begin withholding funds from government payments such as tax refunds and, later in the summer, Social Security benefits (03:07).
Wage Garnishment: Additionally, the Education Department will issue wage garnishment notices, allowing employers to withhold up to 15% of borrowers' paychecks for loan repayment starting early summer (03:07).
Practical Advice: Nancy Marshall Genzer from Marketplace provides actionable steps for borrowers to mitigate the impact:
Payment Agreements: Entering into a repayment plan or rehabilitating the loan by making nine on-time monthly payments.
Loan Consolidation: Consolidating defaulted loans into a direct consolidation loan can extend the repayment period, though it may result in higher interest rates and increased total payments (03:34).
Notable Quote: Nancy Marshall Genzer advises borrowers, “You can enter into a payment agreement or rehabilitate your loan... But be careful, you may end up with a higher interest rate and wind up paying more in the end” (03:34).
Key Takeaway: The Education Department's renewed focus on collecting defaulted federal student loans underscores the importance for borrowers to proactively address their repayment options to avoid financial repercussions.
Overview: Transitioning from economics to the film industry, Brancaccio highlights the unexpected box office success of Sinners, a Delta blues-infused vampire film starring Michael B. Jordan. The film not only garnered strong numbers in its opening weekend but also maintained its momentum into the second weekend— a rare feat for a business-oriented program.
In-Depth Discussion:
Marketing Strategy: Dan Runcy, founder of media research firm Trapital, discusses Director Ryan Coogler's unique deal with the studio. Coogler's strategic marketing involved an immersive 10-minute pitch video where he explained the film's dynamic aspect ratio, enhancing emotional and sensory experiences (04:56).
First Dollar Gross: Coogler secured a deal where he begins earning revenue from the first dollar of ticket sales, bypassing the traditional model where directors receive payments after theaters and distributors take their cuts (05:47).
Final Cut and Rights: Additionally, Coogler retains final cut on the film and the rights revert back to him after 25 years, granting him significant creative and financial control (06:19).
Industry Implications: Runcy points out that such deals have become commonplace among top-tier directors, comparing Coogler's agreement to those of James Cameron and Christopher Nolan. This trend reflects the increasing clout directors hold in negotiating favorable terms that align their financial interests with the film's success (06:26).
Notable Quote: Runcy states, “Coogler is someone that a lot of people have season tickets to... So people were really excited about Sinners” (05:34).
Key Takeaway: Ryan Coogler's advantageous deal with the studio not only underscores his status in the film industry but also highlights a broader shift in how top directors negotiate contracts to maximize both creative freedom and financial rewards.
Conclusion: This episode of Marketplace Morning Report provides listeners with vital updates on the U.S. job market, the Education Department's enforcement actions on student loans, and an intriguing case study on successful film marketing and director negotiations. By weaving together economic data, policy changes, and cultural phenomena, the report equips its audience with a nuanced understanding of the factors shaping today's societal and economic landscape.
Notable Quotes:
Marketplace Morning Report continues to deliver timely and insightful news, ensuring listeners are well-informed to start their day.