Result of Obama's proposed cap for PSLF?

[pickledcucumbers]

Any word on whether this passed or not? I'm going to be starting med school next month so I am very interested in hearing if a cap will be applied starting my year.

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[TBV]

Haven't seen a decision on it but sounds like it will go through. Combating the doctor shortage by making it more difficult/ less desirable to become one. Should work.

 

[pickledcucumbers]

Haven't seen a decision on it but sounds like it will go through. Combating the doctor shortage by making it more difficult/ less desirable to become one. Should work.

I thought it was supposed to be effective starting july 1st if passed?

 

[Red Lobster Actual]

Haven't seen a decision on it but sounds like it will go through. Combating the doctor shortage by making it more difficult/ less desirable to become one. Should work.

Interesting. Source please?

 

[TBV]

Interesting. Source please?

Source: cynicism

 

[baxt1412]

I'm not crossing my fingers for it, but I'm hoping the backdoor Roth sticks around.

 

[Red Lobster Actual]

Source: cynicism

Oh haha, thanks dude. I was wondering if there was a recent new development. From what I've been gathering Congress so far hasn't implemented the PSLF cap President Obama proposed last year. All the news sort of petered out...

Well I do believe winter is coming but I am just wondering how fast.

 

[Cytarabine]

Really hope it sticks around. I like to think it going away wouldn't have an effect on my eventual subspecialty choice and consideration of ped heme onc... but as the burden of debt becomes more real I have to imagine it'll be on my mind

 

[NickNaylor]

Here was a source I found using the Googles. I've never heard of this source, so take it for what you will. However, they seem to believe that under the current proposal, anyone that receives any kind of loan prior to July 1st will still be eligible for current repayment plans and will not be subject to the proposed ~$55k cap, even if future loans are made after July 2015.

http://educatedrisk.org/analysis/ed...oposals-combined-incomes-pslf-caps-paye-terms

 

[Cytarabine]

Here was a source I found using the Googles. I've never heard of this source, so take it for what you will. However, they seem to believe that under the current proposal, anyone that receives any kind of loan prior to July 1st will still be eligible for current repayment plans and will not be subject to the proposed ~$55k cap, even if future loans are made after July 2015.

http://educatedrisk.org/analysis/ed...oposals-combined-incomes-pslf-caps-paye-terms

I've read mixed things. The conclusion I recall is that there is no legal guarantee that grandfathers old loans signed while PSLF wasn't capped

 

[pathologyDO]

You know what they say about things that sound too good to be true...

 

[Narmerguy]

To be fair, they would have spent a crazy amount of money forgiving debt of doctors who, for the majority at least, spend little time practicing in the "public service" scheme that they envisioned.

 

[slopes23]

I guess every school can cut their Financial aid presentations from 15 minutes to 8.

 

[Red Lobster Actual]

Here was a source I found using the Googles. I've never heard of this source, so take it for what you will. However, they seem to believe that under the current proposal, anyone that receives any kind of loan prior to July 1st will still be eligible for current repayment plans and will not be subject to the proposed ~$55k cap, even if future loans are made after July 2015.

http://educatedrisk.org/analysis/ed...oposals-combined-incomes-pslf-caps-paye-terms

Thanks Dr. NickNaylor! I remember reading that exact article back in Spring semester 2014.

Ah, here we go. http://www.gpo.gov/fdsys/pkg/CRPT-114hrpt47/pdf/CRPT-114hrpt47.pdf

Concurrent Resolution on the Budget by the Budget Committee, House of Representatives. Dated 3/20/2015 (or the House of Representin'...Idiocracy?...anyone?)
Pg. 115
"Simplify the Existing Higher Education Programs to Protect Students and Taxpayers. The way the current Federal aid system is set up, it is unduly complicated and contains some provisions that result in disparate treatment for some students. Given the numerous other repayment options available, and the disparate treatment inherent in its design, actions taken by the committee of jurisdiction to streamline, reform, and simplify the current system could include ending the Public Service Loan Forgiveness Program."

The fiscal year is ending Sept. 31 and we'll see what happens when the budget fight in Congress begins again. Winter is coming.

 

[mw18]

Basically from what I have read and what I understand, it did not make it into the budget. When the process starts over, it could. The Department of Education, while not being intimately involved with PSLF, has stated that it is more than likely that all that have borrowed before the effective date will not be subject to the cap. Grandfathered in. There is no guarantee this will happen, but it is the way they see it happening. If they get rid of the program altogether, before 2017 where anyone could take advantage, that would probably elicit some outrage. From what I understand it will take an act of congress to change it. I am truly hoping for some grandfathering.

 

[NickNaylor]

I've read mixed things. The conclusion I recall is that there is no legal guarantee that grandfathers old loans signed while PSLF wasn't capped

Indeed there isn't, but grandfathering does typically happen, and most people that I've spoken with (including the financial aid director at my medical school who follows this stuff pretty closely) think grandfathering is more likely than not. But you're right, there's certainly no guarantee that grandfathering has to happen.

 

[Cytarabine]

Indeed there isn't, but grandfathering does typically happen, and most people that I've spoken with (including the financial aid director at my medical school who follows this stuff pretty closely) think grandfathering is more likely than not. But you're right, there's certainly no guarantee that grandfathering has to happen.

Fingers crossed

 

[deleted547631]

http://blogs.wsj.com/economics/2016...000-in-student-debt-for-thousands-of-doctors/

 

[Stagg737]

I'm not crossing my fingers for it, but I'm hoping the backdoor Roth sticks around.

I wouldn't plan on it or any forgiveness plans existing, things can change pretty quickly and when it comes to finances it always pays to be more conservative when it comes to debt and long-term investments. Why wouldn't backdoor Roths be around though? Have there been talks of eliminating them?