PSLF

[NewEnglandLiving_33]

I work for a 501C3 organization and was looking a taking advantage of Public Student Loan Forgiveness after 10 yrs. I know I qualify and have approximately 95k in Fed Direct Loans 6.8% interest.

News today shows that the program may get cut. Any thoughts on this program? Thank you!

[Sibley]

Well, if congress cuts PSLF or other SL programs, they might actually manage to get the 20-30 demographic out to vote in beyond record breaking numbers. SLs are a demographic problem - they're impacting when people have children and buy houses, among other things. Realistically, they can kick the can down the road some but at some point they'll have to address it. They're too dumb to actually deal with it now before things get worse of course.

In other words, if you're eligible and would otherwise sign up, go for it.

[Proud Foot]

If you are eligible and would sign up for it then you should do it now. Yes there is talk about cutting PSLF programs but I do not believe they will go completely away. Most likely some of the requirements will change but I'm not going to guess what. I also highly doubt (just my opinion) any changes will effect those who are already enrolled in the programs with exception to possibly those in the first few years of it. 

If you are eligible now you should sign up for it before congress actually addresses these programs and make you no longer eligible.

[thingamabobs]

1.make sure your loans are held by the right loan service for forgiveness. I think you are.
2. Start repaying under one of the assist programs such as REPAYE, PAYE, IBR. Studentloanplanner.com has a good calculator to figure out which program is best.
3. Set asides savings that will cover the loan if pslf goes bust.

[wonkette]

They can't pull the rug out from under you, they can only end it going forward. That said, get all your ducks in a row. File your employment certification form, make sure you're with FedLoan refile it every year to make sure you're on track. Make sure you have Direct loans and if you don't do a Direct Consolidation right now. If they end the program do not consolidate them as that will effectively create a new loan with a promissory note that prohibits PSLF. Never fall out of your income driven repayment program, because they may make it difficult to get back in as a way to prevent people from getting PSLF. Make sure you're paying on time, set up automatic payments.

If you were thinking you would wait until closer to the ~10 year forgiveness threshold to get all of this done, don't. Do it now.

[BTDretire]

OK, just looked up what a PSLF is. Looks like it may be to late for my family, but I want to ask about it.
 My daughter just got excepted to Dental College. I'm looking at about $200k in Dental College costs.
  I wonder about getting the loans just in case she gets in a PSLF and if not, pay off the loans.
My daughter says, she would probably not go the PSLF route, but who knows.
 Any discussion?


  Edit to add,
http://money.cnn.com/2018/01/02/pf/college/public-service-loan-forgiveness-lawsuits/index.html

[inline five]

I actually mostly support this. Good on Trump. No need for a masters degree to teach first grade kids. Yet we have a system that "requires" a masters in many states just to apply to be a teacher. With less people getting those degrees due to costs, requirements will drop. Win/win. Wow and to think I voted for Hillary...I'm liking stuff this admin does a lot.

I'd assume doctors and other such professions will at least remain in the program if it's curtailed at all.

[kimmarg]

OK, just looked up what a PSLF is. Looks like it may be to late for my family, but I want to ask about it.
 My daughter just got excepted to Dental College. I'm looking at about $200k in Dental College costs.
  I wonder about getting the loans just in case she gets in a PSLF and if not, pay off the loans.
My daughter says, she would probably not go the PSLF route, but who knows.
 Any discussion?


  Edit to add,
http://money.cnn.com/2018/01/02/pf/college/public-service-loan-forgiveness-lawsuits/index.html

Probably not the right program for that scenario. You may want to see about underserved Health care provider loan forgiveness programs. https://www.nhsc.hrsa.gov/

[Sean Og]

I actually mostly support this. Good on Trump. No need for a masters degree to teach first grade kids. Yet we have a system that "requires" a masters in many states just to apply to be a teacher. With less people getting those degrees due to costs, requirements will drop. Win/win. Wow and to think I voted for Hillary...I'm liking stuff this admin does a lot.

I'd assume doctors and other such professions will at least remain in the program if it's curtailed at all.

Except that's the only way this countries underpaid teachers can get a minuscule bump in pay, and still not have anything near parity with other professionals with a mere bachelors degree!

As for the statement that many states require a masters just to apply, I'd need to see the numbers on that but I'm extremely skeptical. Hell in my state they even passed a bill to remove the license requirement as they can't attract people into the profession!

[BTDretire]

OK, just looked up what a PSLF is. Looks like it may be to late for my family, but I want to ask about it.
 My daughter just got excepted to Dental College. I'm looking at about $200k in Dental College costs.
  I wonder about getting the loans just in case she gets in a PSLF and if not, pay off the loans.
My daughter says, she would probably not go the PSLF route, but who knows.
 Any discussion?


  Edit to add,
http://money.cnn.com/2018/01/02/pf/college/public-service-loan-forgiveness-lawsuits/index.html

Probably not the right program for that scenario. You may want to see about underserved Health care provider loan forgiveness programs. https://www.nhsc.hrsa.gov/

   Thanks for the info.

[NoStacheOhio]

I actually mostly support this. Good on Trump. No need for a masters degree to teach first grade kids. Yet we have a system that "requires" a masters in many states just to apply to be a teacher. With less people getting those degrees due to costs, requirements will drop. Win/win. Wow and to think I voted for Hillary...I'm liking stuff this admin does a lot.

I'd assume doctors and other such professions will at least remain in the program if it's curtailed at all.

Yes, because that's exactly how that will go. :eyeroll:

OP, just sign up. It's not like there's a downside. If they end the program, you're exactly where you'd be without it. If they don't, then you've made qualifying payments.

[PDXTabs]

I actually mostly support this. Good on Trump.

Good luck getting any more lawyers to work for the federal government.

[rothwem]

OP, just sign up. It's not like there's a downside. If they end the program, you're exactly where you'd be without it. If they don't, then you've made qualifying payments.

Nostache, I agree with this, with one caveat. I have friends that signed up for the pslf program, and it’s an excuse for them to only pay the minimum payment, because, well, it’s going to be forgiven anyways! It seems like a way to end up paying more interest than needed.

If you pay a bunch of principal, do you get that back? How exactly does the program work? Nobody I’ve talked to seems to actually know, even the people who signed up for it.

[NoStacheOhio]

OP, just sign up. It's not like there's a downside. If they end the program, you're exactly where you'd be without it. If they don't, then you've made qualifying payments.

Nostache, I agree with this, with one caveat. I have friends that signed up for the pslf program, and it’s an excuse for them to only pay the minimum payment, because, well, it’s going to be forgiven anyways! It seems like a way to end up paying more interest than needed.

If you pay a bunch of principal, do you get that back? How exactly does the program work? Nobody I’ve talked to seems to actually know, even the people who signed up for it.

No, payments are payments. Whatever balance remains when you reach forgiveness goes away and that's it. PSLF is not taxable (unlike non-PSLF forgiveness).

All things being equal, and assuming PSLF remains in its current form, making the minimum payments is the most advantageous choice for borrowers.

[GU]

I'm pretty sure this has been addressed on the forums before, but PSLF is in the master promissory note you signed when you took out your loans (if they were taken out during the period when PSLF has been available). The only way they could legally get rid of PSLF is to cut off the benefits for future debtors.

If Congress really wanted to stick it to the PSLF crowd, perhaps they would attempt the blatantly illegal move of getting rid of PSLF mid-stream. But I'm not sure that would survive legal challenges. 

Here is some more speculation:  https://www.biglawinvestor.com/pslf-promissory-note/