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2015 Obama Administration Budget and Proposed Student Loan Changes


MaxwellAlum

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The Obama administration is proposing changes to Income-Based Repayment (IBR) and the Public Service Loan Forgiveness (PSLF) program for federal student loans.  The New America Foundation has summarized those changes:

 

http://www.edcentral.org/obama-administration-announces-major-reforms-income-based-repayment/

 

http://www.edcentral.org/case-obamas-fixes-income-based-repayment/

 

These proposals would limit the dollar amount that can be forgiven under PSLF, require borrowers to pay more when their income increases, and require married borrowers to have their household income used in calculating their IBR payments (right now if you file taxes married filing separately you can just have your own income counted).  What are your thoughts?

 

There's a White House petition out now to ask the administration to keep PSLF in its current form:

https://petitions.whitehouse.gov/petition/retain-public-interest-loan-forgiveness-program-its-current-form-forgiving-all-qualifying-student/wkqnqBCH

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I also read that the vote would be April 5, but haven't heard anything. Does anyone have news on this? 

Also, I'm trying to figure out the math here and what would be the real cost. I plugged in a few different scenarios into the PSLF calculator online, and it seems to suggest that I'd be paying the same in loans at all of my choice schools - even though one costs 3x more than the other - and that simply more would be forgiven if I went to a more expensive school. I was really surprised by this, does it sound right?

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