Has anyone seen this news story floating around the interwebs?
The headline reads: “Trump to Propose Scrapping Beleaguered Student Loan Forgiveness Program.” It’s got a big picture of Betsy DeVos face floating around with the headline.
In the story, reporter Jillian Berman discusses how a leaked education budget shows plans to eventually chop the Public Service Loan Forgiveness program (PSLF). Its not a sure thing. The budget plans are not yet finalized and, even if they were, it would require Congress’ approval.
I’ve seen lots of panic and political drama surrounding it on Facebook. My mom tagged me in one such post to get my thoughts on the issue.
And here I am, sitting on the sidelines. I graduated with nearly $100,000 in student loan debt (now sitting right at $65,000 – latest debt update here). I’m taking the position that I’ve never wanted to depend on any of the government loan forgiveness programs. For many years – long before Trump took the presidency and appointed Betsy DeVos as Secretary of Education – I’ve been saying that I didn’t trust these government programs. I’ve always maintained the position that I don’t want to depend on the government and that the PSLF program (or any of the loan forgiveness programs) could ultimately just disappear one day. I don’t want to make major career decisions on the basis that I need to go into this field or work for that sector in order to qualify for PSLF because WHAT IF the program ends up discontinued?? Then what? Where would that leave me? Up shit creek with no paddle, that’s where!!!
Instead, I personally have always taken the view that I just want to PAY OFF my loans as quickly as possible. Don’t get me wrong – I have nothing against the loan forgiveness programs. If I were already on a career-trajectory where I intended to be in public service I would certainly be looking into it – I just don’t want to force myself down that road simply for the hope of possible loan forgiveness at the end of it. Actually, I’m on an income-based payment plan where any unpaid interest on my subsidized loans has been forgiveness. It’s not loan forgiveness (it’s only interest forgiveness…and only on some of my loans), but it’s a related student loan program and I’m taking 100% advantage of it while I can. But in terms of the major government-backed loan forgiveness programs (like PSLF), they have never sounded like appealing options for me.
What are your thoughts on the controversy? Is anyone signed up for the PSLF program that would be directly impacted if it were to be discontinued? How scary!