It might actually help more out, because then about 90% of residents would get PSLF credit for their time in residency and get $30-50k forgiven. As many of us aren't in PSLF-eligible jobs, that little bit of tax-free forgiveness is better than none.
I'd argue that's the better policy for the gov't to pursue if they plan to keep PSLF around. It's meant for social workers/teachers/etc who have lower incomes (and typically much lower debt burdens). It's not meant to forgive the debt of your DA's, judges, neurosurgeons, etc.
I don't have much faith however that Congress will actually fix the underlying problem, which is the cost of college. Some of us will benefit from whatever changes Biden announces, but the trust is almost any action he takes, while helping many of us out now (including many who truly need it), it's actually going to worsen the problem going forward. But at least it's an attempt to address the issue. Still, action really needs to start up-front with the cost of college, and not after-the-fact with the debt we owe.
If they do that then it is what it is, but I would argue that it should definitely not affect the current PLSF people. I work in a community healthcare setting that can not get competent physicians and I was the only board certified physician, let alone physician who actually did residency for what they're practicing medicine in, lol. To give the promise of loan forgiveness after 10 years, then 5 years in that gets dropped from under you seems a bit cruel. But I would think they would make it for future PLSF candidates, not those already in the program.
But honestly, I think if there is going to be loan forgiveness it shouldnt be income based, whether its plsf or not. For one, it doesnt solve the root of the problem, which is the cost of tuition. Second thing, no one forces people to choose the career path/degree they choose. If someone works hard, makes significant sacrifices and does all the right things, then why should preclude them from help, just because they made good decisions/worked hard?
The cost of tuition sets people up to fail along with the associated interest rate and people make bad decisions when they're young, but the cost of tuition is equally predatory to those who worked hard and did well.
Obviously something needs to be done but the government's response is pretty weak, seems like everyones just shuffling their feet or burying their heads in the sand.
Needs to be a cap on the amount a school can charge for tuition and I would argue that federal loan should factor in credit score to a degree. Don't deny someone with no credit, but if you have perfect credit, perhaps you should be entitled to the same interest rate you would get from a car or house loan. If you have a 200 credit score, then that's a different story. Teaching the younger generation about financial responsibility while also not setting them up to fail would be ideal.
