So...loan forgiveness..probably done now?

someresident · Aug 2, 2011

So is it right to assume that there is little chance for PSLF now with the likely demise of subsidized grad student loans? If anything the subsidized staffords made more sense than the PSLF-so I'm guessing there is no way it will be around in the 7 or so years when the first people get eligible?

Brachyury · Aug 2, 2011

someresident said:
So is it right to assume that there is little chance for PSLF now with the likely demise of subsidized grad student loans? If anything the subsidized staffords made more sense than the PSLF-so I'm guessing there is no way it will be around in the 7 or so years when the first people get eligible?

No one can tell you; all we can do is conjecture. PSLF was created as a way to address rising college and graduate school costs, and without it, the nation could face a shortage of teachers, social workers, and librarians. Honestly, I'm not worried about PSLF disappearing: I'm worried that physicians will be excluded from PSLF.

Also, graduate student subsidized Stafford loans were cut as part of a compromise on the debt ceiling, and not as part of a re-tooling of the financing of higher education. Point is, don't assume that PSLF will be taken off the books just because subsidized Staffords for grad students were. Also pray that the Democrats control both Houses and the White House in 7 years

SoundofSilver · Aug 2, 2011

I think it's likely that PSLF will be on the chopping block. Students are a very easy target. This climate of fiscal austerity is not going away anytime soon (or ever). Things are going to keep getting worse. I think people are starting to wake up and realize the downturn in our economy is not just some temporary thing.

But anyways, the whole student loan system is broken at a fundamental level. The reason we have sky high tuition that increases every year is largely due to very easy access to unlimited amounts of money that students are able to borrow. Schools have no incentive to control costs because they know their students will always be able to pay.

The intelligent thing to do would be to reform the student loan system so students wouldn't have to hold out hopes for false promises like PSLF.

SoundofSilver · Aug 2, 2011

Brachyury said:
Also, graduate student subsidized Stafford loans were cut as part of a compromise on the debt ceiling, and not as part of a re-tooling of the financing of higher education. Point is, don't assume that PSLF will be taken off the books just because subsidized Staffords for grad students were. Also pray that the Democrats control both Houses and the White House in 7 years

Obama was the first one to propose ending subsidized Stafford loans for grad students in his budget proposal released this past winter.

Also, Bush is the one who signed the PSLF and IBR bills.

Not attacking Democrats or defending Republicans here. Don't really like either party too much. Just want to set the record straight and assert that Democratic control of Washington in 7 years does not mean that students are going to fare any better.

Brachyury · Aug 2, 2011

SoundofSilver said:
Obama was the first one to propose ending subsidized Stafford loans for grad students in his budget proposal released this past winter.

Also, Bush is the one who signed the PSLF and IBR bills.

Not attacking Democrats or defending Republicans here. Don't really like either party too much. Just want to set the record straight and assert that Democratic control of Washington in 7 years does not mean that students are going to fare any better.

True, but Democrats controlled both houses when PSLF and IBR were passed.

Brachyury · Aug 2, 2011

SoundofSilver said:
I think it's likely that PSLF will be on the chopping block. Students are a very easy target. This climate of fiscal austerity is not going away anytime soon (or ever). Things are going to keep getting worse. I think people are starting to wake up and realize the downturn in our economy is not just some temporary thing.

But anyways, the whole student loan system is broken at a fundamental level. The reason we have sky high tuition that increases every year is largely due to very easy access to unlimited amounts of money that students are able to borrow. Schools have no incentive to control costs because they know their students will always be able to pay.

The intelligent thing to do would be to reform the student loan system so students wouldn't have to hold out hopes for false promises like PSLF.

True, but IBR and PSLF were created as an allternative to dealing with a reform of higher education costs

deleted116380 · Aug 2, 2011

I never thought IBR or PSLF would be sticking around long even before all this stuff went down recently. The first time I heard about these programs a few years ago I already started thinking how long it would last due to the rise in tuition that I was already seeing. Expect the worst, hope for the best.

Hey, at least you can default on your loans and practice in another country debt free.

...I wouldn't be surprised if residency didn't get any funding from Medicare in 10 years time. They would put the financial burden on hospitals. Loans for residents for living expenses? lol

Kevin Baker · Aug 2, 2011

Brachyury said:
Also pray that the Democrats control both Houses and the White House in 7 years

Why? The dems had plenty of opportunity to raise the debt ceiling on their own without a compromise, and specifically in the case of subsidized grad loans, 75% of the money saved from screwing grad students goes to financing $17 bln more for Pell grants at the undergrad level (this was based verbatim on the Boehner plan). The Reid plan put ALL of the grad student cuts towards Pell Grants. Both parties screwed grad students but at least the Republican plan put some of that money towards lowering the debt.

We're still in Iraq and Afghanistan, we just finished QE2, and there is serious talk of a new QE3. Don't give any brownie pts to the dems!

patel2 · Aug 2, 2011

Kevin Baker said:
Why? The dems had plenty of opportunity to raise the debt ceiling on their own without a compromise, and specifically in the case of subsidized grad loans, 75% of the money saved from screwing grad students goes to financing $17 bln more for Pell grants at the undergrad level (this was based verbatim on the Boehner plan). The Reid plan put ALL of the grad student cuts towards Pell Grants. Both parties screwed grad students but at least the Republican plan put some of that money towards lowering the debt.

We're still in Iraq and Afghanistan, we just finished QE2, and there is serious talk of a new QE3. Don't give any brownie pts to the dems!

this....really it doesn't matter if we have an "R" or "D" in power, as we are headed for a sovereign debt crisis in the next decade and so the issue of student loans won't matter then. Keep in mind the debt ceiling negotiation didn't cut ANYTHING...it was a debate about adding 7 trillion (boehner plan) versus 8 trillion (reid plan) to the debt over the next decade, with no actual reductions anywhere.

Sadly they managed to fool the American public into thinking that minor cuts into proposed increases in spending is the same thing as actually cutting spending.

Dr Gerrard · Aug 3, 2011

If they do happen to cut out PSLF... would those already in the track of doing it be able to continue, or do you think they would completely stop it?

Suncrusher · Aug 3, 2011

Dr Gerrard said:
If they do happen to cut out PSLF... would those already in the track of doing it be able to continue, or do you think they would completely stop it?

it's my understanding (I talked to my med school financial aid advisor a lot about this program in general) that being "on the track" simply means not missing any of your income-based payments and making sure you are working at a hospital that qualifies. According to her, only at the end of the 10 years of compliance with the program do you actually apply have your loans forgiven. So it's my understanding that during the 10 years of compliance, you arent really in any sort of program--you are just like any other physician who is doing the income-based payment plan, except you are restricting yourself to working for a public or non-profit hospital while they are not. So if PSLF was cut, my guess is that you would not have any hope of continuing from the middle. :shrug:

I might be totally wrong though, but that is based on what my med school fin aid advisor told me

So...loan forgiveness..probably done now?

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