PSLF Cap and Grandfather clause

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
Long_Time_Lurker
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PSLF Cap and Grandfather clause

Postby Long_Time_Lurker » Wed Nov 26, 2014 9:40 am

I've read that the proposed cap on PSLF will only affect new borrowers starting in July 2015. As a 0L with existing student loan debt from undergrad (though I have made minimum monthly payments starting law December), will I still be eligible for the uncapped PSLF if I start law school in August 2015?

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swampman
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Re: PSLF Cap and Grandfather clause

Postby swampman » Wed Nov 26, 2014 6:14 pm

No, your new loans wouldn't be grandfathered in. Your undergrad loans (assuming they're eligible) would not be capped, but any "new course of study" started after that date would be subject to the cap. I think it's ambiguous as to whether the undergrad loans would count towards the capped amount for your law school loan forgiveness.

BUT these are the terms of Obama's proposed budget, so probably have little to no bearing on a bill that the Republicans may or may not pass in the next two years.

Long_Time_Lurker
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Re: PSLF Cap and Grandfather clause

Postby Long_Time_Lurker » Wed Nov 26, 2014 6:24 pm

swampman wrote: BUT these are the terms of Obama's proposed budget, so probably have little to no bearing on a bill that the Republicans may or may not pass in the next two years.


My concern is that the Republican budget might look quite a bit worse for PSLF.

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kay2016
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Re: PSLF Cap and Grandfather clause

Postby kay2016 » Sun Nov 30, 2014 1:42 pm

There was a lot of talk about this months ago when the President proposed his budget... But the truth is no one knows what will happen.

A lot of people think that old loans will be grandfathered, but I wouldn't count on it and so I'm trying to plan accordingly




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