Public Service Loan Forgiveness- does the VA count?

[Anxiety]

Hi. Would working at the VA qualify me for the Public Service Loan Forgiveness Program?

If yes and I do the Income-Based Repayment program, my remainder of my loan will be forgiven after ten years?

Thank you.


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[Pragma]

The VA qualifies.

Your second question is a little more complicated. In theory, yes, but there is no guarantee the program will still be there in 10 years.

 

[psych.meout]

Hi. Would working at the VA qualify me for the Public Service Loan Forgiveness Program?

If yes and I do the Income-Based Repayment program, my remainder of my loan will be forgiven after ten years?

Thank you.


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Yes, it would, though I don't know that I would rely on that to pay off large amounts of grad school debt, especially in this political climate.

 

[Anxiety]

I have over $300k in student loan debt. Really sad face.


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[MAClinician]

I have over $300k in student loan debt. Really sad face.


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[WisNeuro]

I have over $300k in student loan debt. Really sad face.


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How on earth did that ever happen in a non-MD degree?

 

[BuckeyeLove]

I heard of an individual that didn't match something like three years in a row, then continued to take out loans for both school and living, and then used living expense loans to travel the world. last I heard, this person finally matched, but has 450 plus. ohh..and all they want to do is PP therapy.

 

[Justanothergrad]

I have met two people with 350k+ in debt for a PhD in psyc. I don't understand that decision- any part of it

 

[AcronymAllergy]

As was mentioned above, the answers are "yes" and "technically yes." There was talk under Obama of capping the amount that would be forgiven, although that didn't go into effect. No clue how things will be in 4 years. I believe the first "class" of PSLF forgiveness recipients is coming up soon, though, so we'll see how that turns out.

There's also the forgiveness that occurs at 25 (or was it 20?) years for non-PSLF IBR/ICR repayment plans. Downside there is that the forgiven amount is currently slated to be taxed as income.

 

[erg923]

Can we say, "government dependency?"

 

[psych.meout]

Can we say, "government dependency?"

And don't they enable the for-profit, unfunded, and FSPS programs to exist by offering these programs ways of convincing prospective students to ignore their reservations about the costs of the programs, because they can use these government programs to deal with their otherwise insurmountable debt?

 

[erg923]

And don't they enable the for-profit, unfunded, and FSPS programs to exist by offering these programs ways of convincing prospective students to ignore their reservations about the costs of the programs, because they can use these government programs to deal with their otherwise insurmountable debt?

Ask the OP. 🙂

 

[Anxiety]

How on earth did that ever happen in a non-MD degree?

I went to a private Christian university for my BA and then wasted two years in chiropractic school. Dropped out because I hated it and now I'm completing my PsyD at a really expensive school that you guys all hate. Principle is actually $250kish and the rest are the interest I've accrued over the years (there was a long gap between my chiro days and my PsyD). Needless to say, I made some pretty bad choices.


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[ellenew]

I went to a private Christian university for my BA and then wasted two years in chiropractic school. Dropped out because I hated it and now I'm completing my PsyD at a really expensive school that you guys all hate. Principle is actually $250kish and the rest are the interest I've accrued over the years (there was a long gap between my chiro days and my PsyD). Needless to say, I made some pretty bad choices.


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Like others have said, I hope that the program is still around in 10 years for it to work. I really wish there was a way for my clinical work now in graduate school (all in a very low SES area with little to no mental health resources) could count toward those years since I'm already in repayment using ICR. I looked into it, but it looks like we need to be licensed for the payments to apply. At this point, I'm making small payments each month even though I don't have to based on ICR.I hope that it will help to ease the taxed amount when loans are forgiven in 20-25 years (if PLFP doesn't pan out).

 

[Pragma]

Like others have said, I hope that the program is still around in 10 years for it to work. I really wish there was a way for my clinical work now in graduate school (all in a very low SES area with little to no mental health resources) could count toward those years since I'm already in repayment using ICR. I looked into it, but it looks like we need to be licensed for the payments to apply. At this point, I'm making small payments each month even though I don't have to based on ICR.I hope that it will help to ease the taxed amount when loans are forgiven in 20-25 years (if PLFP doesn't pan out).

I would take another look at that. Licensure is not required. You may have to be done with your graduate program. But you also have to be employed full time.

 

[psychrat]

Hi. Would working at the VA qualify me for the Public Service Loan Forgiveness Program?

If yes and I do the Income-Based Repayment program, my remainder of my loan will be forgiven after ten years?

Thank you.


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The VA does qualify, but from what I understand interest is not covered. Perhaps others have insight into this?

 

[eremitestar]

The VA does qualify, but from what I understand interest is not covered. Perhaps others have insight into this?

I haven't heard that. However, even if that is the case, there are a couple things to keep in mind. First, FedLoan Servicing is the only lender you can use if you sign up for PSLF (at least, that was the case when I signed up). That means you have to consolidate all of your loans under their umbrella, and all of your accrued interest becomes principal when you do. Second, FedLoan applies your payments to interest before principal. The nice thing about that is that you can write off all interest paid on student loans on your taxes (up to $2500, I believe). Also, by the end of 10 years there should really only be principal left to be forgiven. I'm not holding my breath that my loans will actually be forgiven when the time comes, but I am keeping my fingers crossed that when the program is inevitably cancelled or scaled back I'll be grandfathered in.

 

[AcronymAllergy]

I've not heard that, either, about interest not being covered. My understanding, limited as it might be, is that as things currently stand, PSLF forgives the entire outstanding balance after 120 qualifying payments. I wonder if you may be confusing it with the forgiveness that occurs after either 20 or 25 years' worth of payments on an income-based repayment plan...which I believe also forgives interest (if there's any outstanding), but taxes the forgiven amount as income?

 

[deleted407083]

Just wanted to add in this thread from the medical student forum on SDN (https://forums.studentdoctor.net/th...-and-public-service-loan-forgiveness.1235640/). I found this interesting:

PSLF has been written into the MPN for all eligible federal loans since 2007. There is nothing to worry about for people who have already taken out loans. The MPN is a binding document on both sides. They would get sued by tens of thousands of people if they tried to go back and retroactively cap the amount forgiven, as no such cap is mentioned in the MPN. The exact wording has changed slightly over the years, but it's always been something similar to,

"A Public Service Loan Forgiveness program is also available. Under this program, we will forgive the remaining balance due on your eligible Direct Loan Program loans after you have made 120 payments on those loans (after October 1, 2007) under certain repayment plans while you are employed full-time in certain public service jobs. The required 120 payments do not have to be consecutive."

With that wording, it would be very difficult to go back and try to cap the amount forgiven. Now for people taking out future loans, I wouldn't count on this program in it's current form being around for much longer...

I've seen this a few times now searching about PSLF. I am planning on consolidating at the end of this year since you have to wait until graduation. I am planning on starting repayment immediately since IBR is obviously much cheaper monthly during post-doc and the beginning of your career.

Looking at some websites, Trump had a "campaign promise" (whatever that means) for a student loan forgiveness program after 15 years at between 10-12.5% of discretionary income for everyone. Which is not bad!

 

[psych.meout]

Just wanted to add in this thread from the medical student forum on SDN (https://forums.studentdoctor.net/th...-and-public-service-loan-forgiveness.1235640/). I found this interesting:


I've seen this a few times now searching about PSLF. I am planning on consolidating at the end of this year since you have to wait until graduation. I am planning on starting repayment immediately since IBR is obviously much cheaper monthly during post-doc and the beginning of your career.

Looking at some websites, Trump had a "campaign promise" (whatever that means) for a student loan forgiveness program after 15 years at between 10-12.5% of discretionary income for everyone. Which is not bad!

Aww, bless your heart.

 

[deleted407083]

Aww, bless your heart.

Yeah. Not holding my breath...definitely hoping the MPN do hold up as being grandfsthered.