The Future of Public Service Loan Forgiveness

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The opportunity to serve your community or country, and at the same time, tackle student loan debt makes the Public Service Loan Forgiveness a really positive resource for a number of college graduates, particularly if you have gone to medical school or are in the healthcare field.

This program is one of the most beneficial resources for borrowers who may not otherwise be able to afford to work lower-paying public service jobs due to the high cost of education and mounting debt.  However, the forgiveness program has recently come under fire, due to allegations of waste and abuse.

A proposed cap on the program by President Obama was dropped in order to fit the 2015 budget. Had it passed, the cap would have been set at around $57,500, leaving many graduates in a lot of trouble. For example, some estimates say the average law school graduate carries a debt of $140,000.

The Congressional Budget Office estimated in 2014 that the cap would save $265 million over the next 10 years, but a report by Brookings in September noted this figure had been revised to $6.7 billion.

However, some efforts by Republican lawmakers regarding the budget have included calls to scrap the Public Service Loan Forgiveness program altogether. Part of the 2016 Republican budget proposal included getting rid of the program, along with freezing Pell Grant awards and ending subsidized loans for undergrads.

Even with no current plans to modify or get rid of Public Service Loan Forgiveness, there is still cause for concern. Public Service Loan Forgiveness could be changed easily, and there are no guarantees that current borrowers would be grandfathered in.

It is too soon to tell what President-Elect Trump’s plans are in regards to Public Service Loan Forgiveness. However, student debt is projected to play a pivotal role in future financial crises, meaning the program is certain to make its way into discussion circles sooner rather than later.

For more information on the Public Service Loan Forgiveness program and the process of signing up, read the articles listed below :

Student Loan Forgiveness Program: Guide for Healthcare Professionals

Public Service Loan Forgiveness for Healthcare Providers

Income Driven Repayment Plans for Student Loans

Are You a Healthcare Professional and Interested in Public Service Loan Forgiveness?

The Public Service Loan Forgiveness Application Process

Public Service Loan Forgiveness: Frequently Asked Questions



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