Hi,

I just started researching the proposed PSLF cap, so I have HUGE gaps in my understanding and am hoping someone could help straighten one out for me!

If the proposed PSLF cap at $57,500 goes into effect in 2017, would the cap apply to anyone who had not yet applied for forgiveness (the finalizing requirement at the end of the 10 years/120 payments) or would it include anyone who had started the process by having their qualifying employment documented as required regardless of number of years/payments into the process?

Any info would be appreciated - thanks!

Hello,

First of all there is no cap. So, it is rather difficult to say how a cap will be applied when there isn’t anything in writing except a small suggestion in the 2015 Obama budget to add one, which didn’t happen. No one knows how a cap in 2017 would play out, but most likely (and hopefully), people who are already on the path to forgiveness won’t be affected. I’m not sure how they’d track who is and who isn’t on the path already, because there’s no official way to enroll in it, except for the employment certification forms which only let you know that you are on the right path. My guess is that if a cap were implemented, they’d do it by rolling out a new income based plan that contains the cap, and make the old repayment plans unavailable for new borrowers, meaning that if you are on one of the older plans, you can remain on it and still be eligible for full forgiveness.

Thank you for replying! In the article I read on this website, it sounded like the proposed cap was still being considered for 2017. For people like myself who are either not yet employed with an eligible organization or not close to the 120 payments, it’s worrisome to not yet know any concrete information about such a major proposed policy change. I appreciate your input!