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PSLF - Proposed Cap for Forgiveness / PAYE Changes

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Total Posts: 6

Joined 2011-05-23

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Hi Heather!

I have been catching up on the recent release of the Dept of Ed budget proposal for fiscal year 2015, which I found here: http://www2.ed.gov/about/overview/budget/budget15/justifications/s-loansoverview.pdf 

I then found this article http://educatedrisk.org/analysis/ed-further-clarifies-2015-budget-proposals-combined-incomes-pslf-caps-paye-terms .

I am now really concerned about the possible noted cap on PSLF that is noted. I have been on PSLF, and by this December, I should be 3/10 years completed and certified with FedLoan Servicing, so i have about 7 years to go.

Do you think they will have the cap for people currently on PSLF? Do you think we will be grandfathered into cover our full amount? I am very confused by the article and budget.

Also, it mentions about it possibly being bad thing if someone were to switch to the new PAYE when it comes in Dec 2015 for those that are on another plan like I am on IBR. I was thinking about switching to PAYE when it becomes available, but this scares me.

I would love to hear your thoughts on this and the article.

Thanks so much,

A VERY worried loan borrower (Brad)