Trump potentially eliminating Public Student Loan Forgiveness

[Mr. Government]

Something to keep an eye on if this was your plan for repayment. Link

[MaxwellAlum]

In discussing the various reforms to student loans including the elimination of PSLF, the President's budget proposal states, "All student loan proposals apply to loans originated on or after July 1, 2018, except those provided to borrowers to finish their current course of study."  So conceivably if you have already started your master's program by next year, you could still be eligible for forgiveness.  However, since the President's proposed budget is really more of a wish list than anything else, we really don't know for sure whether PSLF will be eliminated by Congress and if so, whether existing borrowers will be grandfathered in.  Refer to page 20 of: https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/budget/fy2018/budget.pdf

[MasterPublicPolicy]

Scary stuff. At any rate, taking out a gargantuan amount of debt in the hope that it will be forgiven later probably isn't something I'd recommend anyway.

That said, this is potentially devastating if people who had expected this benefit aren't grandfathered in.

[Mr. Government]

This month marks the first period of eligibility for PSFL and it's looking like a disaster. 

"October 2017 was supposed to represent the first glimmer of light at the end of this tunnel. This month marks the 10th anniversary of the Public Service Loan Forgiveness program, one of the few avenues for wiping out student debt. The idea, launched by George W. Bush, was pretty simple: Students could pledge to work 10 years for the government or a nonprofit and have their debt forgiven. In order to qualify, borrowers had to make payments for 10 years using a complex formula. This month, then, was to start the first mass wipeouts of debt in the history of American student lending. But more than half of the 700,000 enrollees have already been expunged from the program for, among other things, failing to certify their incomes on time, one of many bureaucratic tricks employed to limit forgiveness eligibility. To date, fewer than 500 participants are scheduled to receive loan forgiveness in this first round."

http://www.rollingstone.com/politics/features/taibbi-the-great-college-loan-swindle-w510880

[MaxwellAlum]

On 11/10/2017 at 12:22 PM, Mr. Government said:

This month marks the first period of eligibility for PSFL and it's looking like a disaster. 

"October 2017 was supposed to represent the first glimmer of light at the end of this tunnel. This month marks the 10th anniversary of the Public Service Loan Forgiveness program, one of the few avenues for wiping out student debt. The idea, launched by George W. Bush, was pretty simple: Students could pledge to work 10 years for the government or a nonprofit and have their debt forgiven. In order to qualify, borrowers had to make payments for 10 years using a complex formula. This month, then, was to start the first mass wipeouts of debt in the history of American student lending. But more than half of the 700,000 enrollees have already been expunged from the program for, among other things, failing to certify their incomes on time, one of many bureaucratic tricks employed to limit forgiveness eligibility. To date, fewer than 500 participants are scheduled to receive loan forgiveness in this first round."

http://www.rollingstone.com/politics/features/taibbi-the-great-college-loan-swindle-w510880

That's weird.  PSLF doesn't have income requirements.  The reason most people have to certify their income is to continue to qualify for income-based repayment (IBR), which is a qualifying repayment plan for PSLF.  If you don't recertify, you should be placed on a standard 10-year plan, which is also a qualifying repayment plan, but if you are on it for 10 years there will be nothing left to forgive. It sounds like Taibbi is confusing PSFL with IBR perhaps?