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How to handle PSLF going forward

Started by goody687, November 09, 2016, 08:26:28 am

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goody687

I graduated law school 5 years ago with 100,000 in debt. I have been working at a not for profit organization and making payments under an IBR plan. My payments are reasonable and do not cover the growing interest. I have been comfortable with this because of the promise of forgiveness. Given the Trump election and Republican control over Congress, how would you guys handle your debt going forward? In theory I could start paying more (my wife and I file separately) or just start making side payments to hedge against the program going away and not being grandfathered in.

TheCollegeInvestor

If you're already 5 years into your PSLF, just continue with the remaining 5 years.

The only difference with Trump is that he's proposed changing IBR forgiveness from 20 years to 15 years. I highly doubt it will impact many people, because:
1. Many Republicans are concerned about his budget
2. Even if it does go through, it will typically only impact new borrowers after a date in the future. So you likely wouldn't qualify anyway.

goody687

I read that too. Did you see the House Republican proposed budget last year? They advocated eliminating the program all together (though they didn't mention whether people would be grandfathered). I was concerned with Republican control that would find its way into the new budget.

TheCollegeInvestor

I did see that, but like most programs with student loan debt - it typically only applies to new borrowers going forward (so if they passed the law, it would say something like Only Applies to New Borrowers After July 1, 2017). So if you're already going down that route, I highly doubt they will change it.

swimnow

I would like to find out how best to see if my wife's student loans could be discharged. She has worked for state government in the Department of Public Health for the past 5 years. If she qualifies for any type of debt relief I would like to find an organization that can handle this for us or just receive a simple explanation on hoe to receive the required form(s). Thanks!

TheCollegeInvestor

It's really easy to do PSLF. Just follow the directions on the form here (and fill out the form): https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf

Remember, the requirements are:
1. Must work in public service (sounds like this is happening)
2. Must be on an income-driven repayment plan or the standard 10 year plan (IBR, PAYE, RePAYE)
3. Must have a Direct Loan (you need to go online to StudentLoans.gov and check if you don't know)