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Public Service Loan Forgiveness to be Eliminated Under Trump 2018 Budget

By on May 23, 2017

It wasn’t that long ago I wrote Public Service Loan Forgiveness Program Teters With Unmitigated Disaster but the new Trump 2018 proposed budget drive that worry into lightspeed.

According the the budget titled A New Foundation For American Greatness, “To support this streamlined pathway to debt relief for undergraduate borrowers, and to generate savings that help put the Nation on a more sustainable fiscal path, the Budget eliminates the Public Service Loan Forgiveness program, establishes reforms to guarantee that all borrowers in IDR pay an equitable share of their income, and eliminates subsidized loans.” – Source

The proposed program elimination would apply to loans originated on or after July 1, 2018.

The role of the PSLF program was signed into law by President George W. Bush as an effort to encourage people to work in government, military, non-profits, and health fields.

By the way, here is an interesting PSLF document I discovered recently, it’s the Public Service Loan Forgiveness Processing Manual. It will come in handy for all the people who are sure to face issues with PSLF in the future.

READ  Military Servicemembers Get Hosed by Student Loan Servicers

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

4 Comments

  1. Lee Dyroen

    May 24, 2017 at 7:48 pm

    The headline is sensationalized bait. It is a true lie. It should say, “New Public….”. After all your articles about the student loan catastrophe which is, you put click bait out with this headline and falsely slanted thought against the President.

  2. Mike

    May 24, 2017 at 5:42 pm

    Steve – Does this mean that those of us who took new loans out prior to July 1, 2018 continue on as normal (if there is such a thing)? I just went through the time and energy to move from an FFEL to DIRECT and am currently in the REPAYE program paying 10% of my discretionary income and qualify for the PSLF program. In fact, I’m on my 8th payment of 120. Definitely worrisome. Thank you for your insights.

    • Steve Rhode

      May 24, 2017 at 5:50 pm

      The administration says loans before July 1, 2018 will be eligible for PSLF but I’m very concerned the Department of Education is playing fast and loose with who will ultimately be approved for forgiveness. They seem to be changing the rules along the way. See https://getoutofdebt.org/101403/public-service-loan-forgiveness-program-teters-unmitigated-disaster

      • Mike

        May 26, 2017 at 11:11 am

        I guess it’s another one of those things to keep an eye on. Monitoring all of this is a part-time job itself. Thanks for keeping all of us informed as to the latest coming out of DC Steve. Your efforts are much appreciated.

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