President Obama's 2015 budget to alter loan payback and forgiveness

[thirstyscholar]

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http://blogs.wsj.com/washwire/2014/...oposes-broader-debt-forgiveness-for-students/

Currently, the program limits the monthly payment on a borrower’s loans to 10% of discretionary income. After 20 years of payments, any remaining debt is forgiven. For workers in government and certain nonprofit jobs, debt is forgiven after 10 years.

Among the changes proposed Tuesday, individual borrowers would face new limits on how much debt that could have forgiven. The amount forgiven for public-sector workers would be capped at $57,500. Borrowers with debt loads above $57,500 would make payments for 25 years. And payments for married borrowers filing separately would be calculated on their combined household adjusted gross income.

So for those higher price loan recipients, legislation could be introduced that 10 years of under-served service would be capped at $57,500 in loan forgiveness rather than forgiving the whole amount. That's chump change when looking at the price tags of a lot of private schools.

 

[Combine33]

I wouldn't worry abut it, the presidents budget is largely ceremonial and represents what he would like to see happen

 

[Illfavor]

This is incredibly important for

I wouldn't worry abut it, the presidents budget is largely ceremonial and represents what he would like to see happen

It's good to read, and good to know. The message here is "don't rely on anything from the government".

 

[sjv]

Yeap, wait until the final budget passes, Congress has yet to go through it.

 

[TheWeeIceMan]

I wouldn't worry abut it, the presidents budget is largely ceremonial and represents what he would like to see happen

The proposal by the White House most likely represents the best case scenario (for borrowers) of what actually passes. It's not a done deal, but it would be smart to understand what this could mean.

 

[Combine33]

The proposal by the White House most likely represents the best case scenario (for borrowers) of what actually passes. It's not a done deal, but it would be smart to understand what this could mean.

Yes it is important to understand the implications of this type of thinking, but we can all be sure to hear the proposal hit the floor as soon as it arrives in Congress. Too much opposition and a lot of this coming years budget was already decided upon.