Student loans: 'Landmark settlement' reached in lawsuit over Public Servant Forgiveness Program

[alpha12]

Student loans: 'Landmark settlement' reached in lawsuit over Public Servant Forgiveness Program

One of America's largest teacher's unions and the Department of Education (ED) announced a settlement on a key loan forgiveness program used by public service workers.

www.yahoo.com

Might be helpful for some pharmacists that got screwed over.

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[owlegrad]

Ok now I do miss MBM.

 

[mentos]

How did pharmacists get screwed over? No one forced them to take out a mortgage to attend pharmacy school. They could have become an RN for 20k and gotten paid more than some pharmacists.

 

[alpha12]

How did pharmacists get screwed over? No one forced them to take out a mortgage to attend pharmacy school. They could have become an RN for 20k and gotten paid more than some pharmacists.

I agree but if they met the requirements for pslf and still didn't get it they did get screwed over. The accepted a **** salary for 10 years for the program.

 

[BC_89]

This was something I forewarned soldiers in my company about - when you fill out the annual application/certification, you'll need a signature to verify the accommodated time frame with an actual email / phone call confirmation addressing the listed supervisor.

They'll attempt to reach out "once" or call "once" and generally ask if the applicant worked full time for DOD/VA/501(c)(3) company/IHS/whatever-401b-teaching job once application is submitted. If no follow up is done or email got "junked" or (most common) it is redefined a few years down the road why your job is no longer considered under their umbrella system (certain teaching facilities), you're out without anyone telling you until the very last second.

Although I agree PSLF is a better program than IBR or REPAYE, the qualifications are up to interpretation (despite seeming direct). I have my own thoughts on loan forgiveness programs but glad to know at least some people made it through the risky ring-of-fire.

 

[PharmtoCS]

The real pharmacists who got screwed over are those of us who busted ourselves at CVS to pay off our loans ASAP. The ones who took out tons of loans and are getting them discharged through cush PSLF qualifying jobs are extremely lucky.

 

[mentos]

The real pharmacists who got screwed over are those of us who busted ourselves at CVS to pay off our loans ASAP. The ones who took out tons of loans and are getting them discharged through cush PSLF qualifying jobs are extremely lucky.

Yup we could have thrown that student loan money into a house or stocks or whatever, like the ones who had loans forgiven did.

 

[owlegrad]

Haters gonna hate I guess. Might as well be mad about literally any money that anyone gets that you don’t.

 

[PharmtoCS]

Haters gonna hate I guess. Might as well be mad about literally any money that anyone gets that you don’t.

Money that other people get handed will inevitably compete with mine (which I earned) for the same foods and services. That means I pay more for the same goods and services.

It’s not a something-for-nothing deal.

 

[mentos]

Haters gonna hate I guess. Might as well be mad about literally any money that anyone gets that you don’t.

I mean our retirement accounts will be next. After this student loan crisis, there will be a retirement crisis. Will it make you mad when they take away your tax advantaged benefits to subsidize irresponsible people who didn't save for retirement? I'm driving a 12 year old Accord while they're buying Teslas. Congress is already planning to get rid of backdoor Roth soon. I wouldn't be surprised if 401k or HSA is next. If that makes me a hater then it is what it is.

 

[owlegrad]

I mean our retirement accounts will be next. After this student loan crisis, there will be a retirement crisis. Will it make you mad when they take away your tax advantaged benefits to subsidize irresponsible people who didn't save for retirement? I'm driving a 12 year old Accord while they're buying Teslas. Congress is already planning to get rid of backdoor Roth soon. I wouldn't be surprised if 401k or HSA is next. If that makes me a hater then it is what it is.

If you really believe that than you should stop investing and start spending every dollar.

Clearly you don’t really think that will happen and you know your retirement is going to be far superior to anyone who plans on relying on the government for their retirement. As it should be.

But to answer your question, I will not object to improved social security or other means to allow people to retire. My contribution will be minimal and that safety net will be in place in case I need it. Sounds like a great deal to me and I fully accept/desire it.

 

[mentos]

If you really believe that than you should stop investing and start spending every dollar.

Clearly you don’t really think that will happen and you know your retirement is going to be far superior to anyone who plans on relying on the government for their retirement. As it should be.

But to answer your question, I will not object to improved social security or other means to allow people to retire. My contribution will be minimal and that safety net will be in place in case I need it. Sounds like a great deal to me and I fully accept/desire it.

It's already proposed. The backdoor Roth will be gone soon. So I should stop investing in my 401k and HSA now?

Backdoor Roth IRA 2024: 3 Simple Steps

A backdoor Roth IRA is a way to accumulate money in a Roth even if you’re no longer eligible to contribute to a Roth IRA.

districtcapitalmanagement.com

 

[confettiflyer]

I’m loving these PSLF changes, takes some uncertainty off the table. I didn’t read that above article (looks like Yahoo), there’s better ones from WSJ and NYT.

I paused for a few years using up parts of my 3 year deferral to amass the down payment to my house, so I’m a few years away from final forgiveness (~2024).

If it makes anyone feel better, my total/overall payment roughly pays off all the principal I took out…functionally making my student loan an interest free loan (like $1500/mo x 101 payments since ~19 months were covered under CARES).

People are going to look back at COVID PSLF payment credit like the way we pharmacists look back at 2005’s RPh shortage/free flowing bonuses, lol.

 

[owlegrad]

It's already proposed. The backdoor Roth will be gone soon. So I should stop investing in my 401k and HSA now?

Backdoor Roth IRA 2024: 3 Simple Steps

A backdoor Roth IRA is a way to accumulate money in a Roth even if you’re no longer eligible to contribute to a Roth IRA.

districtcapitalmanagement.com

I know it’s purposed. There is a reason it’s called “back door” Roth, right? When people talk about “closing loopholes” this is what they are referring to, isn’t it?

My point is the same. If you think the government is going to steal all your savings and give it to poor people the logical thing to do is become one of those poor people, no? Why be the sucker when you can be one of the ones who enjoys all their money and doesn’t save anything?

I get it. It’s fun to complain about taxes and say it’s unfair for anyone else to get something you didn’t get and denigrate them for not saving the way you did. But I am sure you know that you are going to be rich when you retire and anyone who doesn’t save is going to have a rough time.

Paying a slightly higher marginal tax rate due to changing taw laws to ensure that everyone (including you if something goes wrong) has a little dignity in retirement is a pretty good deal if you ask me.

Also right now it’s just been purposed. Things get purposed all the time. We will see what actually happens.

 

[PharmtoCS]

My point is the same. If you think the government is going to steal all your savings and give it to poor people the logical thing to do is become one of those poor people, no? Why be the sucker when you can be one of the ones who enjoys all their money and doesn’t save anything?

Which is what is happening to some extent during the pandemic. There is all the incentive to consume and spend while little incentive to work and save due to the pauses on student loan payments, rents, mortages + enhanced unemployment + stimulus checks. Prices of goods and services are through the roof because there is too much money going around and not enough goods and people (labor) to provide services.