Sutdent loan repayment and PSLF

[pedstar09]

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First year resident here. Just consolidated my loans to fedloans and was able to be approved for REPAYE with monthly $0. Total loans are 200K at 6%. With changing political circumstances, should I still try and pay 10% of my income?

My concerns are that in new administration by president-elect, they might get away with PSLF and that may lead to accruing of unnecessary interest on the loans which I think I can pay based on my income right now. If I continued to pay, I can also deduct the interest that I pay.

 

[Raryn]

First year resident here. Just consolidated my loans to fedloans and was able to be approved for REPAYE with monthly $0. Total loans are 200K at 6%. With changing political circumstances, should I still try and pay 10% of my income?

My concerns are that in new administration by president-elect, they might get away with PSLF and that may lead to accruing of unnecessary interest on the loans which I think I can pay based on my income right now. If I continued to pay, I can also deduct the interest that I pay.

The big question is not whether PSLF will be changed (it certainly will be, even Obama wanted to cap it at a total of like $60k forgiveness or something) but whether the current people already signed up for it and in the process of making their 120 payments will be grandfathered in.

It's entirely possible that they would be...

 

[the argus]

It's pretty unlikely that the terms would change for people who already have loans. Public Service Loan Forgiveness is written into the Master Promissory Note, which is a legally binding document that explains the terms and conditions of the loan. The ones I have (from 2010-2014) specifically say,

"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 difficult for them to try and cap the amount forgiven. They would most certainly be taken to court by thousands of people. I don't think it would even matter if you hadn't started making the 120 qualifying payments yet. Those are the terms of the loan, and it says nothing about a required time period for starting the 120 payments.

EDIT: looked at all of my MPNs. The wording changed slightly in 2014. Don't think it changes the issue though. Above is 2014, below is pre-2014,
"A public service loan forgiveness program is also available. Under this program, the remaining balance due on your eligible Direct Loan Program loans may be cancelled after you have made 120 payments on those loans (after October 1, 2007) under certain repayment plans while you are employed in certain public service jobs."