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WSJ Article on PSLF

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  • WSJ Article on PSLF



  • #2
    Interesting article.  I would be scared of this being "reformed" away.  The general public does not really care about young docs crushing student loan burden or tort reform.


    • #3
      Agreed. I have little doubt the PSLF program will change from its current form. The question is when and how...


      • #4
        I think the writer should have actually done some math.  They may forgive a lot more than 130k depending on training length etc.


        • #5

          I think the writer should have actually done some math.  They may forgive a lot more than 130k depending on training length etc.
          Click to expand...

          Articles math was bad but served to rile folks up and worked that way. However, the government is still making out no matter what unless you dont practice. People have a hard time seeing the big picture.

          Who cares about 130k one time forgiven when that is around may physicians yearly taxes and doesnt include payments made up until that point.


          • #6
            Agree w the funny math comment. The PSLF program makes the most sense for docs who will be having way more than $130k forgiven (by the time forgiveness happens, since the strategy would be to pay back as little as possible and maximize forgiveness).


            • #7
              To the policy geeks out there.... pressure is building for a Higher Education Act (HEA) Reauthorization. Experts believe that nothing will happen on it until at least mid 2017. A lot depends on the results of the elections, of course! In general in Washington (please don't shoot the messenger), Democrats tend to favor PSLF and Republicans tend to oppose it.

              For ten years earlier in my career I was a registered lobbyist. I've seen that personal stories have the power to shift an elected official's perspective. When necessary, I'm hopeful readers of WCI will be willing to connect with their U.S. Senators and Reps.


              • #8
                Yeah, extreme anecdotal examples, but I know more than a few people who went to private undergrad and private med school all on loans, doing long GME terms, and only paying 3-4 years of full payments which never touch principal and having >$400k forgiven tax-free under the current program.


                • #9
                  I think PSLF is useful in that it brings down cost of education to what it really should be.  Cost increases have been unreasonable. At my undergrad institution engineering degree (instate tuition only) in 2003 was 8k/yr in 2016 its 18k/yr. And believe me there is not much difference, same building, same professors, same courses.


                  Good podcast on student loan issue.  They note that British student loan system is such that one pays for student loans once your income goes past $30k/yr. And that payments are caped at 9%. If you loose your job the payments stop. The government services all of this and keeps track of payments and your employment status. Essentially it allows students to go into fields that are true to their personal interests. And this is important for overall health of society.