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PSLF and the new budget

Discussion in 'Psychology [Psy.D. / Ph.D.]' started by WisNeuro, Feb 13, 2018.

  1. WisNeuro

    WisNeuro Board Certified Neuropsychologist Psychologist 7+ Year Member

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    Trump's budget ends student loan forgiveness program, slashes repayment options

    Now it's just the WH version and Congress still has to actually vote and approve things, but I can't imagine that loan repayment/forgiveness programs survive in the form that they currently are. These programs are now losing money and they're looking for anyway that they can offset the huge tax cuts that they've already approved. People already in will likely be grandfathered....maybe. But, I wonder how people who have yet to pick a grad program will look at this when they are considering 6 figure debt?
     
    NeuroLady likes this.
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  3. NeuroLady

    NeuroLady 2+ Year Member

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    I believe the changes would take place in FY2019 for those who haven't yet entered a university program but would continue beyond for those who have already started a program.
     
  4. Pragma

    Pragma Neuropsychologist Psychologist 5+ Year Member

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    Hopefully they are at least looking. Doesn't seem to be the case a lot of the time. I'll be interested in how the marketing will change for the FSPS programs.
     
  5. WisNeuro

    WisNeuro Board Certified Neuropsychologist Psychologist 7+ Year Member

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    I imagine they'll tout new "fellowships/scholarships" that make the smallest dent in the tuition costs, to keep their admission numbers up and continue to skirt the line in deceptive marketing.
     
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  6. Psycycle

    Psycycle Psychologist 10+ Year Member

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    Wow. Eliminates subsidized loans.
    There has been much discussion on this board about the influence on FSPS programs etc. but I was struck today by how this would impact people in service professions like teaching.
     
  7. WisNeuro

    WisNeuro Board Certified Neuropsychologist Psychologist 7+ Year Member

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    Certain professions will definitely be impacted. Although, maybe for the better. Perhaps when some shortages occur, such as in pediatricians for example, we will think about how we fund education and the runaway costs of some higher ed. There is no real shortage of psychologists, so I imagine the mills will continue to accept cohorts of 40+ and charge 40k+ in tuition until the tap of easy to secure loans runs dry.
     
    Fan_of_Meehl and psych.meout like this.
  8. ClinicalABA

    ClinicalABA Psychologist 5+ Year Member

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    You'd hope some would reconsider. I don't, however, hold out hope that those who thought 200K in tuition, with 4 figure montlhy payements, and no understanding of compound interest or lifetime career earnings/re-payment capacity will give it much of a thought either way.
     
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  9. psych.meout

    psych.meout 2+ Year Member

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    They'll still probably be convinced that they'll have fully booked private practices netting $200/hour, so it doesn't matter to them that PSLF and subsidized loans are going away. They think they'll be making so much money that it doesn't matter how much debt they'll accrue. It doesn't help that FSPS and other unfunded institutions basically mislead applicants about their finances.

    Just look at people who post to this board. Many of them are convinced that it doesn't matter that the tuition costs alone will put them $140,000 in debt before factoring in living expenses and travel, because it's "the right choice for them." These people are at least conscientious and forward-thinking enough to do some research and post here. Think about all the people who don't do this kind of research. They are to whom I was referring earlier. They have no idea the financial and career ramifications of their choices.
     
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