PSLF revisions: New budget proposal screws anyone in PI. Forum

[Young Marino]

Very concerned that the administration is willing to compromise on this. I think its important that we let them know how we feel. Particularly in regard to retroactive modification. The higher ed lobby might push hard on keeping certain aspects of IBR/PSLF, but preventing retroactive modification probably isn't a plausible alternative to them . . . we've already paid tuition, I doubt they care about us.

Oh, believe me, my elected reps have already been notified. I'm not sanguine at all. It's just kind of lulzy, in a sad way, that DOE is actually being challenged by freaked out students to clarify what the hell they're on about in re: something they clearly just threw out there without thinking through much of anything.

It's also quite clear they either don't give a damn or do not understand the drastic consequences this would have on our lives.

My GF emailed the White House about this last week. "Obama" sent her a response that said if she has any concerns about paying her loans, he would encourage her to visit the relevant websites and look into the option of having her loans forgiven after 10 years of public interest work. LOL

Lmao. Wtf?

[Nomo]

Very concerned that the administration is willing to compromise on this. I think its important that we let them know how we feel. Particularly in regard to retroactive modification. The higher ed lobby might push hard on keeping certain aspects of IBR/PSLF, but preventing retroactive modification probably isn't a plausible alternative to them . . . we've already paid tuition, I doubt they care about us.

Oh, believe me, my elected reps have already been notified. I'm not sanguine at all. It's just kind of lulzy, in a sad way, that DOE is actually being challenged by freaked out students to clarify what the hell they're on about in re: something they clearly just threw out there without thinking through much of anything.

It's also quite clear they either don't give a damn or do not understand the drastic consequences this would have on our lives.

My GF emailed the White House about this last week. "Obama" sent her a response that said if she has any concerns about paying her loans, he would encourage her to visit the relevant websites and look into the option of having her loans forgiven after 10 years of public interest work. LOL

Amazing . . . but not surprising.

[FinanceStudent28]

I have never wanted to poast a "thanks obama" gif nonironically before, but this almost put me over the edge

http://i.imgur.com/3Dhp5HQ.gif

[hattrick87]

Any 0Ls actually reconsidering their final decision given the proposed changes? Even if the forgiveness program isn't changed this year with the 2015 budget, it's a pretty good guess that it will within the next 5-10 years.

[twenty]

I know I am. Very PI minded, and now strongly considering a solid regional with lots of money over a top school at sticker.

[dresden doll]

I know I am. Very PI minded, and now strongly considering a solid regional with lots of money over a top school at sticker.

Smart. I probably wouldn't take anything at sticker save maybe Yale if I were a 0L.

[Nomo]

I know I am. Very PI minded, and now strongly considering a solid regional with lots of money over a top school at sticker.

Smart. I probably wouldn't take anything at sticker save maybe Yale if I were a 0L.

Any school with an LRAP indpendent of IBR might be ok at sticker. I think that adds Harvard, Stanford, and Columiba to the list. I think all the others tied in with IBR.

[swampman]

Any 0Ls actually reconsidering their final decision given the proposed changes? Even if the forgiveness program isn't changed this year with the 2015 budget, it's a pretty good guess that it will within the next 5-10 years.

If I hadn't EDed then I absolutely would be. But waiting another year sounds awful right now so I'm going to gamble on PSLF staying in place.

I will almost certainly regret this decision.

[dresden doll]

I know I am. Very PI minded, and now strongly considering a solid regional with lots of money over a top school at sticker.

Smart. I probably wouldn't take anything at sticker save maybe Yale if I were a 0L.

Any school with an LRAP indpendent of IBR might be ok at sticker. I think that adds Harvard, Stanford, and Columiba to the list. I think all the others tied in with IBR.

Not sure I'm following. Would having LRAP independent of IBR be helpful even with the PSLF cap?

[swampman]

I know I am. Very PI minded, and now strongly considering a solid regional with lots of money over a top school at sticker.

Smart. I probably wouldn't take anything at sticker save maybe Yale if I were a 0L.

Any school with an LRAP indpendent of IBR might be ok at sticker. I think that adds Harvard, Stanford, and Columiba to the list. I think all the others tied in with IBR.

Not sure I'm following. Would having LRAP independent of IBR be helpful even with the PSLF cap?

They are independent of PSLF too. I believe they just help you with your payments on a standard 10-year repayment plan.

[dresden doll]

They are independent of PSLF too. I believe they just help you with your payments on a standard 10-year repayment plan.

Oh, the school makes the 10 year standard payments for you for as long as you're in PI? Damn, that's amazing. Didn't know that.

ETA: Asked my boyfriend who went to CLS and he says that, as far as he knows, their LRAP is in fact tied to IBR (wasn't in the past pre-PSLF). If he's wrong, I'm so jealous of all CLS grads in PI.

[swampman]

They are independent of PSLF too. I believe they just help you with your payments on a standard 10-year repayment plan.

Oh, the school makes the 10 year standard payments for you for as long as you're in PI? Damn, that's amazing. Didn't know that.

ETA: Asked my boyfriend who went to CLS and he says that, as far as he knows, their LRAP is in fact tied to IBR (wasn't in the past pre-PSLF). If he's wrong, I'm so jealous of all CLS grads in PI.

Yeah I think it's just HYS, and the details and percentage they pay varies, but it's definitely a sweet deal.

[dresden doll]

Yeah I think it's just HYS, and the details and percentage they pay varies, but it's definitely a sweet deal.

I thought they made standard payments while you were below a given cap (60k for Yale, I think), and then phased you out gradually. I don't believe any school would just totally repay your loans (unless you somehow managed to stay below that 60k cap for 10 years), but that's still much, much better than just linking you to IBR. If the cap does get retroactively eliminated, those people won't be nearly as screwed as the rest of us who are saddled with negative amortization.

[calle_25]

.

[Dingo Starr]

Attended ASW at regional today because full ride.
I would have to commute by train 1.5 hrs each way to attend.
Not happy.

[Tiago Splitter]

Columbia has an LRAP option that is not tied in with PSLF. If you choose to take the PSLF option they will make 100% of your payments up to 71k in salary, while they only make 100% up to 50k if you choose the non-PSLF option.

[dresden doll]

Columbia has an LRAP option that is not tied in with PSLF. If you choose to take the PSLF option they will make 100% of your payments up to 71k in salary, while they only make 100% up to 50k if you choose the non-PSLF option.

That's really not bad at all. Much better than what we have. How does the phase out work?

[Tiago Splitter]

Columbia has an LRAP option that is not tied in with PSLF. If you choose to take the PSLF option they will make 100% of your payments up to 71k in salary, while they only make 100% up to 50k if you choose the non-PSLF option.

That's really not bad at all. Much better than what we have. How does the phase out work?

34.5% of anything above 50k, which from what I understand is on the high side. You also have to stay in qualifying employment for at least five years or a portion of their contributions must be paid back.

[EducatedRisk]

From the responses in this thread, seems like it won't affect borrowers that are already in repayment, right? 1L here, hoping it won't pass ever but if it does, after 2016 please.

Seems like it. From the link bouakedojo posted on the last page:

"For all new borrowers (with minor exceptions) starting with the 2015-2016 academic year the new expanded PAYE program will be the only income-based repayment plan available so the cap applies. For any other existing borrowers they retain the income-based repayment plan in their promissory note but if they choose to switch to the new expanded PAYE program, they have to accept all the conditions including the caps."

My email to the Department of Education was routed to the Research and Customer Care Center. They said they have not released any specifics and have no information to provide. Not saying the people at "Educated Risk" (bouakedojo's link) are making stuff up. But, it does make me think Dep. of Ed. has no idea what its really doing. I don't think those of us who have already graduated are really in the clear with this proposal yet.

Thank you for contacting the U.S. Department of Education’s – Research and Customer Care Center (RCCC). We appreciate you taking the time to contact us.

In regards to your inquiry, the Department has not released any specifics to items discussed in the President’s 2015 Budget. When information is available, updates will be provided on IFAP or through other means. At this time, we do not have any information to share at the present time.

If I can be of any further assistance on this subject, please feel free to contact me. However, if you have any new inquiries on other topics, please feel free to contact us at fsa.customer.support@ed.gov, or directly at 1-800-433-7327. Thank you again for contacting the U.S. Department of Education’s – Research and Customer Care Center.

Thank you,
Mr. M. DeCosta
Supervisor
Research and Customer Care Center (RCCC)
Call Center Oversight Branch
Tel: 800-433-7327

Greetings top-law-schools.com, this is Educated Risk (http://www.educatedrisk.org).

I happened upon your discussion about the PSLF caps. I just wanted to confirm that the statement on our website came directly from the Department of Education Press Office. The staffer requested that I attribute the statement to the Department of Education, generally.

I am following up on how the combined incomes will be calculated (whether its only new borrowers after 2015 for PAYE or all programs). Also, another issue I am following up on is that PAYE is not in the Master Promissory Note so its not clear if it is guaranteed from the MPN perspective.

I hope this clarifies things some. Great discussion here about PSLF issues!

[dresden doll]

Well, I guess I'll be staying tuned for this.

[twenty]

So if that's true, it sounds like people that borrow $2,000 to take an online community college class if they're not planning on going to law school this year would be grandfathered into old-PAYE.

The combined income thing is almost definitely grandfathered in if PSLF is.

[sidhesadie]

So if that's true, it sounds like people that borrow $2,000 to take an online community college class if they're not planning on going to law school this year would be grandfathered into old-PAYE.

The combined income thing is almost definitely grandfathered in if PSLF is.

What do you mean by "the combined income thing"?

If you mean spousal income being included, I think it's almost definitely not grandfathered in, since they are calling eliminating it "closing a loophole", as if people have been getting away with something sneaky.

[Dingo Starr]

Just get a divorce, if your SO is willing. It's just a piece of paper from the gubmint.

[twenty]

So if that's true, it sounds like people that borrow $2,000 to take an online community college class if they're not planning on going to law school this year would be grandfathered into old-PAYE.

The combined income thing is almost definitely grandfathered in if PSLF is.

What do you mean by "the combined income thing"?

If you mean spousal income being included, I think it's almost definitely not grandfathered in, since they are calling eliminating it "closing a loophole", as if people have been getting away with something sneaky.

Maybe I'm misreading this, but it seems really unlikely. If the old plans are set in stone and maintain the unlimited PSLF status, I can't see why the plans would be modified to obligatorily include spousal income.

[sidhesadie]

So if that's true, it sounds like people that borrow $2,000 to take an online community college class if they're not planning on going to law school this year would be grandfathered into old-PAYE.

The combined income thing is almost definitely grandfathered in if PSLF is.

What do you mean by "the combined income thing"?

If you mean spousal income being included, I think it's almost definitely not grandfathered in, since they are calling eliminating it "closing a loophole", as if people have been getting away with something sneaky.

Maybe I'm misreading this, but it seems really unlikely. If the old plans are set in stone and maintain the unlimited PSLF status, I can't see why the plans would be modified to obligatorily include spousal income.

Because it doesn't have anything to do with PSLF, it's part of IBR/PAYE. Also, it has nothing to do with the terms of the repayment plan, it's how your available income is calculated. As of now, you can avoid having your spouse's income calculated as part of the income for repayment by filing your taxes separately, and this plan "closes that loophole". I saw no indication that "loophole closure" would not apply to people who already have loans. If you have seen such an indication, please, point it out to me.