Public Service Forgiveness

[dubbsco]

There is nothing in the language that says it can be altered. Once you have entered the program, and work towards the 120 payments, the loans are forgiven.

From most of the reading I've done, it looks like people who are currently in the system won't be screwed over, but who knows.

 

[dubbsco]

To my initial post to any republicans about my language, I apologize. You have your own beliefs and I understand that.

Just understand that for most of my life, politicians really haven't impacted me. This is the first time in my life I have been genuinely scared about my future.

 

[tinselwolverine]

There is nothing in the language that says it can be altered. Once you have entered the program, and work towards the 120 payments, the loans are forgiven.

From most of the reading I've done, it looks like people who are currently in the system won't be screwed over, but who knows.

Yep. It looks like George W would've been president when this program was initiated, I don't know how much or how little he would've had to do with it.

The federal government established these agreements order to motivate people to engage in careers designed for promoting the General welfare.

If the new administration thinks this program didn't work as well as had been hoped for, they are never the less obligated to step up and honor the agreements they inherited.

Perhaps somebody needs to remind Betsy divorce that nothing is free.
,

 

[dubbsco]

When you say 5k-7k Tinsel, that may have been your phone messing up. The agreement was initially capped at something like 55k. And in all honesty, that would have been totally fine with me.

 

[tinselwolverine]

When you say 5k-7k Tinsel, that may have been your phone messing up. The agreement was initially capped at something like 55k. And in all honesty, that would have been totally fine with me.

Right, typo. The Slate article stated Obama had proposed a cap at $57.5 K.

According to the Slate article, some borrowers had somehow maneuvered to be protected from loan repayments up to the amount of $150 K.

 

[KAWDUP]

A little bit off topic, and certainly just some anecdotal evidence, but thought I would share anyway. Many people that have graduated from college (undergrad) in the last 5 years have not been able to get decent jobs, but have ended up with debts of way more than 40K. A lot of those individuals have made the conscious decision to quit really trying to get better paying jobs, because then they would have to start repaying their student loans. You can actually delay the start of repayment for very long periods of time.

When I asked why, I was told that they were hoping that someone in power would come along and forgive the debt outright. While you are not allowed to retire the debt through bankruptcy, you can live at home, work at a low paying job, and just let it default. Their logic is that if enough people default, at some point there will be a program to help them out.

In total dollars, the highest debt owed in this country is for real estate. The second highest debt owed is for student loan debt. More than credit cards, and more than car loans.

For the people that started repayment under the Public Service Forgiveness program, or just those really honest types who can't stand having debt hanging over them, could end getting royally screwed, because after you start paying, they (the government) put extra effort into collecting from you, especially after late payments, defaults, and the like.

The question is - what is the answer? I feel for Dubbs and others who got into this program hoping they could be both honest and get a much needed break from the crushing debt. I personally have a wife and child both expecting to have benefitted from this plan. My child wants to quit, move home, and default like many of her friends. I have two or three choices - just say nope, sorry you have to repay your debts, let her move home, and encourage her to stay in the public service job, or help with payments so she doesn't decide to give up and/or move home.

What would you'all do? Is there a better answer? Whether they end this program or not, we are headed for some serious debt headaches in this country. Eventually we will reach a breaking point. Then what?

 

[Michchamp]

A little bit off topic, and certainly just some anecdotal evidence, but thought I would share anyway. Many people that have graduated from college (undergrad) in the last 5 years have not been able to get decent jobs, but have ended up with debts of way more than 40K. A lot of those individuals have made the conscious decision to quit really trying to get better paying jobs, because then they would have to start repaying their student loans. You can actually delay the start of repayment for very long periods of time.

When I asked why, I was told that they were hoping that someone in power would come along and forgive the debt outright. While you are not allowed to retire the debt through bankruptcy, you can live at home, work at a low paying job, and just let it default. Their logic is that if enough people default, at some point there will be a program to help them out.

In total dollars, the highest debt owed in this country is for real estate. The second highest debt owed is for student loan debt. More than credit cards, and more than car loans.

For the people that started repayment under the Public Service Forgiveness program, or just those really honest types who can't stand having debt hanging over them, could end getting royally screwed, because after you start paying, they (the government) put extra effort into collecting from you, especially after late payments, defaults, and the like.

The question is - what is the answer? I feel for Dubbs and others who got into this program hoping they could be both honest and get a much needed break from the crushing debt. I personally have a wife and child both expecting to have benefitted from this plan. My child wants to quit, move home, and default like many of her friends. I have two or three choices - just say nope, sorry you have to repay your debts, let her move home, and encourage her to stay in the public service job, or help with payments so she doesn't decide to give up and/or move home.

What would you'all do? Is there a better answer? Whether they end this program or not, we are headed for some serious debt headaches in this country. Eventually we will reach a breaking point. Then what?

kids today just ain't got no gumption.

they need to roll up their sleeves and get to work.

 

[tomdalton22]

A little bit off topic, and certainly just some anecdotal evidence, but thought I would share anyway. Many people that have graduated from college (undergrad) in the last 5 years have not been able to get decent jobs, but have ended up with debts of way more than 40K. A lot of those individuals have made the conscious decision to quit really trying to get better paying jobs, because then they would have to start repaying their student loans. You can actually delay the start of repayment for very long periods of time.

When I asked why, I was told that they were hoping that someone in power would come along and forgive the debt outright. While you are not allowed to retire the debt through bankruptcy, you can live at home, work at a low paying job, and just let it default. Their logic is that if enough people default, at some point there will be a program to help them out.

In total dollars, the highest debt owed in this country is for real estate. The second highest debt owed is for student loan debt. More than credit cards, and more than car loans.

For the people that started repayment under the Public Service Forgiveness program, or just those really honest types who can't stand having debt hanging over them, could end getting royally screwed, because after you start paying, they (the government) put extra effort into collecting from you, especially after late payments, defaults, and the like.

The question is - what is the answer? I feel for Dubbs and others who got into this program hoping they could be both honest and get a much needed break from the crushing debt. I personally have a wife and child both expecting to have benefitted from this plan. My child wants to quit, move home, and default like many of her friends. I have two or three choices - just say nope, sorry you have to repay your debts, let her move home, and encourage her to stay in the public service job, or help with payments so she doesn't decide to give up and/or move home.

What would you'all do? Is there a better answer? Whether they end this program or not, we are headed for some serious debt headaches in this country. Eventually we will reach a breaking point. Then what?

If moving home is an option, have her get a job, move home and pay her debt. Have her get a 2nd job working weekends. The last thing I would advise my kid was to work less / make less and let someone else bail them out.

 

[dubbsco]

Super, so now I get to work 7 days a week, basically just not have ANY time to enjoy my life for the next 20 years.

It's not that easy Tom.

I'm not working less. I don't make horrible money, it's decent. If I would have never known about the PSLF, so be it. But this was given to us as an option to incentivize people like myself to help others for a living. And now it's potentially being pulled away.

It's not 1958. I can't go get a job at Ford and work 6 days a week and retire when I'm 50. Times have changed.

 

[tomdalton22]

Super, so now I get to work 7 days a week, basically just not have ANY time to enjoy my life for the next 20 years.

It's not that easy Tom.

I'm not working less. I don't make horrible money, it's decent. If I would have never known about the PSLF, so be it. But this was given to us as an option to incentivize people like myself to help others for a living. And now it's potentially being pulled away.

It's not 1958. I can't go get a job at Ford and work 6 days a week and retire when I'm 50. Times have changed.

I wasn't talking to you. I was talking about the girl who just got out of college and has debt.

 

[KAWDUP]

If moving home is an option, have her get a job, move home and pay her debt. Have her get a 2nd job working weekends. The last thing I would advise my kid was to work less / make less and let someone else bail them out.

She has a job as substitute teacher. Pay is pretty low, but she is close to making enough that they (the gov) will want her to start paying. I can't stop her from enacting some bad plan, but do I also want to be the parent that says tough love, start paying kid.

It is probably better for her to get with paying and get a second job, but I have long since been able to get to her to do anything like getting a second job. LOL. Moving home is an option, but also the one that allows her maybe too much "relief". I could make a second job a condition of moving home, but I am pretty sure that is the same as saying "nope start paying your debts."

I think either way, I am going to be stuck helping her pay. The life of a parent that doesn't have the guts to let their child fail. I guess I am part of the problem.

 

[KAWDUP]

kids today just ain't got no gumption.

they need to roll up their sleeves and get to work.

Be happy you still have the chance to instill that value in your son. I thought I had. I have never been without a job since I was 16, but it seems even the best laid plans can be "brainwashed" out of her. :*)

 

[KAWDUP]

Super, so now I get to work 7 days a week, basically just not have ANY time to enjoy my life for the next 20 years.

It's not that easy Tom.

I'm not working less. I don't make horrible money, it's decent. If I would have never known about the PSLF, so be it. But this was given to us as an option to incentivize people like myself to help others for a living. And now it's potentially being pulled away.

It's not 1958. I can't go get a job at Ford and work 6 days a week and retire when I'm 50. Times have changed.

Everything I have read on this, is if you have started paying, you will get to continue paying and get the relief. No matter what idiot politician is in office, I am with ya.

 

[dubbsco]

Tom, I gotcha. Sorry for mixing up people.

Kawdup, that's the intention I get. I would imagine they are going to cover their ass because they would have lawsuits a plenty of they pulled the rug out.

But there are plenty of people that decided to getting into the public sector to help because of this. And now they really can't.

 

[tinselwolverine]

Tom, I gotcha. Sorry for mixing up people.

Kawdup, that's the intention I get. I would imagine they are going to cover their ass because they would have lawsuits a plenty of they pulled the rug out.

But there are plenty of people that decided to getting into the public sector to help because of this. And now they really can't.

Well the program hasn't been shelved yet.

Some of the other links from the Slate article indicated that there were some pretty pricey graduate degrees-possibly JDs and MBA's- in the program that really weren't what the program was intended to be for.

So maybe the program is going to be revised rather than entirely shelved.

That's assuming that the program is still viewed as having merit-there's lots of people who work for nonprofits and work for the government at the municipal state and federal levels who don't necessarily need undergraduate or graduate degrees To do that kind of work.