PSLF NYT Article

[Sergio Estavillo]

Disturbing NYT article regarding PSLF.  If you're pursuing PSLF, please submit your annual employment certification form (attached) and hedge against interest accrual by selecting REPAYE.  Keep in mind there are limited circumstances (i.e., a spouse with little to no federal student loans and income) where REPAYE may not be the most financially suitable income driven repayment option.

http://www.nytimes.com/2016/12/20/your-money/student-loans/they-thought-they-qualified-for-loan-forgiveness-years-later-the-answer-is-no.html?_r=0

[jfoxcpacfp]

Thanks for the information, Sergio Estavillo.

[Dilaudidopenia]

I keep holding out on my wife's loans (mine are already privately re-financed) and have kept them federal while she pursues PSLF in a relatively lower paying specialty with a long training track.  Nothing is for certain, but honestly, how can this program survive?  It will likely be trashed or capped - at least for all us "rich" docs...

[FCP]

Sergio Estavillo wrote:

Disturbing NYT article regarding PSLF.  If you’re pursuing PSLF, please submit your annual employment certification form (attached) and hedge against interest accrual by selecting REPAYE.  Keep in mind there are limited circumstances (i.e., a spouse with little to no student loans and income) where REPAYE may not be the most financially suitable income driven repayment option.

http://www.nytimes.com/2016/12/20/your-money/student-loans/they-thought-they-qualified-for-loan-forgiveness-years-later-the-answer-is-no.html?_r=0

Click to expand...

This is EXACTLY why I refinanced my 340k in loans and threw the idea of PSLF out the window.  The wording is too vague, there is no contract, they don't pay you one penny before 10 years; it's just too big of a risk.

[Dilaudidopenia]

RePAYE is also not a great option if one partner has privately refinanced loans and earns a large income as the gov't does not consider spousal private loans in their calculation of "discretionary income."  In addition you are no longer able to file taxes as "married filing separately" and expect that the high earner's income will not be used in the calculation as well.  This, combined with with elimination of the payment ceiling results in a ballooning of monthly payments and destroys the benefit derived from the enhanced interest subsidy.