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Yea dude that’s what I said... Benyay...
And I think it’s actually pronounced - Bengay... or is it two words? Ben Gay?
I need to bring out the sarcasm tag again
Yea dude that’s what I said... Benyay...
And I think it’s actually pronounced - Bengay... or is it two words? Ben Gay?
2. 10-25 years is a long time, and political winds can change. . . so can your forgiveness.
3. People warp their lives to get forgiveness, rather than be successful. (ie. if you lost $50k a year to work a non-profit, then forgiveness cost you $500,000)
This whole "stimulus" thing is similar to Caesar throwing bread to the masses to keep them pacified. It didn't exactly work out well for the Romans. . . . .
Wonder if we can get a coliseum to hold these political rallies.
To wit:
1) When was the last time there was a proposal to retroactively revoke PSLF? Never. Even the most conservative proposal put forward calls for grandfathering. I suppose that can change, but that’s like saying it’s possible to be annihilated by an asteroid tomorrow. Plus, PSLF was born from a republican president and is not part of annual congressional appropriations.
Your thinking is wrong on this point. This was the whole reason PSLF was passed by bipartisan votes in the first place in 2007 -- to encourage new grads to NOT pursue more lucrative careers and work in public and non-profit sectors. Not everyone just wants to make money. Nothing wrong with wanting to work for the government or a non-profit but new grads with high loan payments were shunning these sectors because they couldn't afford it.3. People warp their lives to get forgiveness, rather than be successful. (ie. if you lost $50k a year to work a non-profit, then forgiveness cost you $500,000)
This is so logical that it could never happen.I agree about PSLF changes, my thoughts:
1) 12 years for full forgiveness, not 10.
2) 25% of debt forgiven in equal 3 year tranches (or 33.33% per 4 years) not the all-or-nothing game we have now.
3) Total lifetime maximum forgiveness is limited to $250,000 pegged to inflation
Personal opinion: all student loans should be based off the 10yr treasury bill, aka the actual cost of financing.
For non-PSLF: 15yrs for undergraduate and 20 years for graduates.
Way out there idea: let people pay 3.5% of income for LIFE (student loan is just never forgiven, ever).
A pharmacist making $150,000 a year, minus a $25k expenses deduction, would pay $364.58/mo in present dollars. A 40 year career would yield $175,000 in total payment (present dollars).
This is so logical that it could never happen.
@confettiflyer , always need new ideas but I think your ideas don't address the two major problems; 1) moral hazard of borrowing the maximum and spending all you want; and 2) the tuition gouging by the schools.
I would propose a new loan class, let's call it for fun GradMinus loans which are never forgivable. Anything for living expenses has to be borrowed on GradMinus. For schools that charge too much tuition (and that is a scheme that needs to be worked out), some portion can be GradPlus starting at 90% and the remainder is GradMinus, and the GradPlus goes down 10% each tranche until it hits zero and everything is now unforgivable GradMinus loans. So students may finally balk at tuition gouging.
It's official, the extra three months COUNTS for PSLF!!!
Secretary DeVos Fully Implements President Trump's Presidential Memorandum Extending Student Loan Relief to Borrowers Through End of Year | U.S. Department of Education
"Non-payments by borrowers working full-time for qualifying employers will count toward the 120 payments required by the Public Service Loan Forgiveness program and as payments that are required to receive forgiveness under an income-driven repayment plan."
There are easy ways to avoid the tax bomb. And you have 20-25 years to plan for it so I doubt anyone would actually be paying taxes on 1099-C income.Too bad you are not doing PSLF. You get the tax bomb
Trust me, it's still easier to take on extra debt and move assets out of your name than it is to grow your 401k over 20-25 years.Not if you have a retirement fund like 401 k.
It's official, the extra three months COUNTS for PSLF!!!
Secretary DeVos Fully Implements President Trump's Presidential Memorandum Extending Student Loan Relief to Borrowers Through End of Year | U.S. Department of Education
"Non-payments by borrowers working full-time for qualifying employers will count toward the 120 payments required by the Public Service Loan Forgiveness program and as payments that are required to receive forgiveness under an income-driven repayment plan."
Too bad you are not doing PSLF. You get the tax bomb
What the hell, hahah...pleasant surprise.
Hello 9yr PSLF
Also, if we consider the inflation, probably good to pay as little as possible and delay paying off the loan.There are easy ways to avoid the tax bomb. And you have 20-25 years to plan for it so I doubt anyone would actually be paying taxes on 1099-C income.
Congrats to all on some more forgiveness. Condolences that you still hold loans in a more precarious work environment.
I feel like I would be crazy to pay anything more than the bare minimum on my student loans. Pay my debts or I’m a deadbeat? Please...
I would so much rather go to Disneyland - they got those mint julip things and the benyays that I can eat like a million of. If I aggressively paid off my loans I would have no idea what it’s like eating 6 benyays and and riding the haunted mansion feels like.. Screw you Dave Ramsey.
I paid my loans within 3 years. Still went to Disneyland. It can be done.