Should I count on PSLF / Public Service Loan Forgiveness?

[Windpt21]

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I've been participating in PSLF for less than 6 months, I have a qualifying employer, job and loans. Do I continue to bank on PSLF or should I abort and figure out another option?

 

[frosted2]

+1

 

[wholeheartedly]

I wouldn't bank on it. They're already trying to scrap it, but i think there's talk about allowing people who are already doing it to continue in the program

 

[Windpt21]

I just can’t imagine them discontinuing PSLF for borrowers that took loans out knowing they could have that program. I feel like there would be a lot of litigation associated with terminating the program for people already in it.

On the other hand if I work 10 years on IBR the interest accrued will be so substantial that I will never be able to pay it off if PSLF goes away or I don’t get approved.

 

[GypsyHummus]

I can see them grandfathering people in who are making payments right now, but if you are planning on this program in the future, I’d say it’s a no go.

The people who expect the government to come and rescue them like a knight in shinning Armour are in for a rude awakening when the money runs out.

I know I am taking out money based on my future ability to pay it back. I’m only going to take out 300k if I know I’m going to make 150k/year. Interest never takes a break. I go by the 1:3 rule. If the amount you take out is more than three times the income (before taxes) that I make, I would not take out that loan. I apply this to big financial purchases considered an “investment” like a house, educational debt, buying a practice, etc. in which you can make money back.

 

[wholeheartedly]

I can see them grandfathering people in who are making payments right now, but if you are planning on this program in the future, I’d say it’s a no go.

The people who expect the government to come and rescue them like a knight in shinning Armour are in for a rude awakening when the money runs out.

I know I am taking out money based on my future ability to pay it back. I’m only going to take out 300k if I know I’m going to make 150k/year. Interest never takes a break. I go by the 1:3 rule. If the amount you take out is more than three times the income (before taxes) that I make, I would not take out that loan. I apply this to big financial purchases considered an “investment” like a house, educational debt, buying a practice, etc. in which you can make money back.

what are your plans if med school costs more than that?

 

[GypsyHummus]

Well, currently the average salary of a primary care doc is around 180k. 180K X 3= 540k. The most expensive medical school in the country that I know of is CCOM which is about 68K for tuition. round up to 70K, Add on 20K for living expeses and you got 90K/year. 90K X 4= 360K. With intrest, I can see it creeping up to 400K in residency.

Still worth it.

what are your plans if med school costs more than that?