The Clark Howard Podcast
The Clark Howard Podcast

07.08.26 The Clark Smart Way To Buy A Mattress / Student Loan Update

July 8, 2026

AI Summary

5 min read

The Mattress Shakeout and the New Reality of College Costs

Mattress prices are falling, student loan interest rates are rising, and the way families pay for college is being fundamentally reshaped. On this episode of the Clark Howard Podcast, Clark walked through two major consumer shifts that demand a different kind of thinking from buyers and parents alike.

The Mattress Industry's Great Shakeout

The mattress business is in turmoil, and that is creating a rare opportunity for consumers. Clark explained that the industry is "going through a shakeout" with "way too many providers of mattresses" both in the United States and globally. The result: mattress prices have been falling steadily even as inflation has pushed up costs for nearly everything else.

The revolution started with Casper, which popularized the process of compressing a mattress in the factory so it could be shipped in a box small enough to fit in a Honda Civic. That innovation upended the entire industry. Traditional mattress stores have become largely obsolete, and many have filed for bankruptcy—including Sleep Number, a well-known brand. The market is overwhelmed with manufacturers, and the industry is "in bankruptcy court so much right now."

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What you'll learn

  • 1 (01:17) **Mattress Market Shakeout: Opportunity & Hazard** - Clark explains why mattress prices are falling due to industry oversupply and bankruptcies, and the new risk of buying from a company that goes bust before you can return it.
  • 2 (07:01) **Listener Q: Best Place for a $30K Inheritance** - Advice on high-yield savings accounts vs. brokerage CDs and money market funds for a lump sum.
  • 3 (09:11) **Listener Q: How Long to Keep Tax Returns** - Clark explains his personal rule for retaining tax documents and supporting paperwork.
  • 4 (11:19) **Listener Tip: The Subscription Credit Card Strategy** - A listener suggests using a single, non-everyday credit card for all subscriptions to easily track and cancel them.
  • 5 (17:12) **Student Loan Update: The End of Unlimited Borrowing** - Clark details the new reality of higher interest rates and federal borrowing caps, and how this is forcing a change in college pricing.
  • 6 (19:53) **The Parental Guilt Trap & The 2+2 Strategy** - A frank discussion on the emotional cost of college decisions and a practical compromise.
  • 7 (22:52) **529 Plan Deep Dive: Best Practices & a Mega-Account Problem** - Advice on choosing a good 529 plan and handling a large, unused balance.

+ Full timestamped outline available in the app

Show Notes

The mattress industry is in chaos, and major brands like Sleep Number are facing bankruptcy. Clark breaks down how the mattress market became incredibly oversaturated and why traditional mattress stores have seen their business models become obsolete. While online shopping and warehouse clubs have revolutionized how we buy beds, the wave of recent bankruptcies poses a risk to consumers. Clark reveals his ultimate rule for buying a new mattress safely. Also, Clark addresses the looming crisis in higher education as federal student loan interest rates spike to 6.5%. With college costs and inflation stretching family budgets to the limit, Clark explains why you should never sacrifice your own retirement savings or saddle your children with a lifetime of crushing debt just to attend a "dream" school. Clark delivers a heavy dose of tough love and practical strategies for parents.

Plus, Christa shares your #AskClark questions and Clark gives his take. All this and more on the July 8, 2026, episode of The Clark Howard Show. Submit your questions: Ask Clark.

  • Buying A Mattress: Segment 1
  • Ask Clark: Segment 2
  • Student Loans: Segment 3
  • Ask Clark: Segment 4

Mentioned on the show: