Trump to propose scrapping student loan forgiveness program

[CriticalThought]

A student loan forgiveness program for teachers, social workers and other public servants could be in jeopardy.

The Trump administration will propose ending the Public Service Loan Forgiveness program (PSLF), according to preliminary Education Department budget documents obtained by The Washington Post.

The program, which allows borrowers working in public service to have their federal student loans forgiven after 10 years of payments, has been a subject of concern for borrowers and advocates over the past several months amid signals that borrowers may not get the forgiveness they’ve been counting on.

Trump to propose scrapping beleaguered student loan forgiveness program ? report - MarketWatch

Well that royally sucks. This is a program that was contractually included in every loan promissory note I signed. I made major financial decisions based on the federal government's promise with this program. I could have refinanced my student loans at a lower interest rate through a private lender. I could have gone into a more lucrative field in the private sector. I could have put off buying a house until I paid down my balance. And now two billionaires are going to make the federal government renege on its contracts with people who made the apparent mistake of believing in going into the poorly paid public sector.

I am not saying the program isn't flawed and that caps should not have been put in place a long time ago but when you are talking about a program that people made huge life altering decisions about and it looks like you aren't even going to grandfather in those who have been doing their part, well...I think I have reached my limit. I am going to find Maggie's old post about things I can be doing and I am fully joining the resistance.

 

[Beaudreaux]

Trump to propose scrapping beleaguered student loan forgiveness program ? report - MarketWatch

Well that royally sucks. This is a program that was contractually included in every loan promissory note I signed. I made major financial decisions based on the federal government's promise with this program. I could have refinanced my student loans at a lower interest rate through a private lender. I could have gone into a more lucrative field in the private sector. I could have put off buying a house until I paid down my balance. And now two billionaires are going to make the federal government renege on its contracts with people who made the apparent mistake of believing in going into the poorly paid public sector.

I am not saying the program isn't flawed and that caps should not have been put in place a long time ago but when you are talking about a program that people made huge life altering decisions about and it looks like you aren't even going to grandfather in those who have been doing their part, well...I think I have reached my limit. I am going to find Maggie's old post about things I can be doing and I am fully joining the resistance.

This program, which was difficult for me to agree with at first because of being a fiscal conservative, has grown on me because it seems in line with the GI Bill, Bootstrap Program, and other similar programs the government uses to recruit and keep people that serve the nation.

I don't have a problem with improving the program with changes going forward, but whatever agreements that were made and acted upon already, should be honored without change.

 

[Henrin]

So a libertarian loves that welfare, eh?

 

[CriticalThought]

So a libertarian loves that welfare, eh?

How on earth is it welfare?

It is a program where if you agree to work in public service, usually at lower pay and harsher conditions, and you pay on your student loans for 120 monthly payments without defaulting, then the government will pay the remaining balance, as stipulated by a CONTRACT, your loan promissory note. Some companies do the exact same thing.

You literally earn it by...

A: working
B: making payments
C: limiting your career options to specific fields and options.

This is not handouts to people in need, it is a contract.

 

[RetiredUSN]

How on earth is it welfare?

It is a program where if you agree to work in public service, usually at lower pay and harsher conditions, and you pay on your student loans for 120 monthly payments without defaulting, then the government will pay the remaining balance, as stipulated by a CONTRACT, your loan promissory note. Some companies do the exact same thing.

You literally earn it by...

A: working
B: making payments
C: limiting your career options to specific fields and options.

What are these harsher conditions that you speak of?

 

[CriticalThought]

What are these harsher conditions that you speak of?

My first job out of graduate school I worked for 2 years at a state prison providing substance abuse treatment to inmates so they would have a better shot at reintegration into the community. I was paid about the same as an average Wal-Mart associate and had to drive about an hour each way. It was rewarding work but dangerous because they were always understaffed.

 

[Greenbeard]

This is why protest votes or non-votes are a bad idea, kids. Elections do indeed have consequences.

 

[DA60]

I don't know all the details.

But I do not think it is right that the generation before had to pay up in full, while this one gets a pass.

And I am 100% against government paid tuition for post-secondary education. All it does is send tuition's skyward because schools know that since the government is paying, they can ask for almost whatever they want...so they do.

I went to university and I learned NOTHING scholastically that I could use in the real world...NOTHING.

Waste of time.

Unless you know EXACTLY what you want to be and you have to have a degree to do that job (like a doctor, lawyer, engineer, etc.) OR someone else is paying for it - university is a near-complete waste of time to me.

And people who have no interest in college should not have to fork over their hard earned tax dollars so some schmuck they will never meet can go and 'find himself' by taking Elizabethan Poetry for four years.


What little I know of this is a rare time I agree with Trump.

 

[ludin]

all existing agreements should be honored I agree.

going forward it could be on the hook though.

I have been paying on my student loans for 10 years and have another 10 years go to.
I know people in the government that make more than I do. yet they will get a free ride.

I have no problem with the GI bill etc ...

in any event we will see where this goes. I think it will be harder to recruit for some positions but then
again they could just transfer that to more pay.

I am looking at the full education budget. there are a ton of cuts. made to various programs.
some I don't agree with.

I doubt any of this will get through congress though.

 

[ludin]

I don't know all the details.

But I do not think it is right that the generation before had to pay up in full, while this one gets a pass.

And I am 100% against government paid tuition for post-secondary education. All it does is send tuition's skyward because schools know that since the government is paying, they can ask for almost whatever they want...so they do.

I went to university and I learned NOTHING scholastically that I could use in the real world...NOTHING.

Waste of time.

Unless you know EXACTLY what you want to be and you have to have a degree to do that job (like a doctor, lawyer, engineer, etc.) OR someone else is paying for it - university is a near-complete waste of time to me.

And people who have no interest in college should not have to fork over their hard earned tax dollars so some schmuck they will never meet can go and 'find himself' by taking Elizabethan Poetry for four years.


What little I know of this is a rare time I agree with Trump.

well certain professions this always existed.
teachers teaching in underserved schools, doctor, and lawyers that would do community work or be a public defender for I think 5 years.

they could get their student loan forgiven.
Obama expanded that for every government worker out there.

Unless you have massive prior experience then good luck getting a job without a degree.

 

[DA60]

well certain professions this always existed.
teachers teaching in underserved schools, doctor, and lawyers that would do community work or be a public defender for I think 5 years.

they could get their student loan forgiven.
Obama expanded that for every government worker out there.

Unless you have massive prior experience then good luck getting a job without a degree.

What? More and more businesses could care less about a university degree unless the degree directly applies to the job.

Report: College degrees mean less in job market | State-and-regional | azdailysun.com

And that trend is just going to continue - I bet - as people realize more and more that college degrees are pretty much useless UNLESS they are for the specific area you studied.

Like I said, I took economics in university and learned NOTHING that I have been able to use in my investments career. Other than a few terminologies and definitions (which anyone can learn in a few hours on their own), I had to pretty much un-learn everything I was taught because the prof's were utterly clueless - as it turned out.

 

[Hawkeye10]

Trump to propose scrapping beleaguered student loan forgiveness program ? report - MarketWatch

Well that royally sucks. This is a program that was contractually included in every loan promissory note I signed. I made major financial decisions based on the federal government's promise with this program. I could have refinanced my student loans at a lower interest rate through a private lender. I could have gone into a more lucrative field in the private sector. I could have put off buying a house until I paid down my balance. And now two billionaires are going to make the federal government renege on its contracts with people who made the apparent mistake of believing in going into the poorly paid public sector.

I am not saying the program isn't flawed and that caps should not have been put in place a long time ago but when you are talking about a program that people made huge life altering decisions about and it looks like you aren't even going to grandfather in those who have been doing their part, well...I think I have reached my limit. I am going to find Maggie's old post about things I can be doing and I am fully joining the resistance.

I noticed a study a few months back that said something like 40% of those taking loans expect to never have to pay on any or most, they expect someone to come in and relieve them of the debt.

Maybe that is a bad thing, maybe if people know that they will be on the hook they will be more responsible.

Just Maybe.

 

[ludin]

What? More and more businesses could care less about a university degree unless the degree directly applies to the job.

Report: College degrees mean less in job market | State-and-regional | azdailysun.com

And that trend is just going to continue - I bet - as people realize more and more that college degrees are pretty much useless UNLESS they are for the specific area you studied.

Like I said, I took economics in university and learned NOTHING that I have been able to use in my investments career. Other than a few terminologies and definitions (which anyone can learn in a few hours on their own), I had to pretty much un-learn everything I was taught because the prof's were utterly clueless - as it turned out.

tell a high school kid to apply for a job with no experience and no degree for a finance job like you have.
your company wouldn't hire him.

you got hired because you had a degree. you had basic knowledge of your field of study. you understood basic concepts
and applications.

 

[ludin]

I noticed a study a few months back that said something like 40% of those taking loans expect to never have to pay on any or most, they expect someone to come in and relieve them of the debt.

Maybe that is a bad thing, maybe if people know that they will be on the hook they will be more responsible.

Just Maybe.

it is a horrible thing more so if they are not getting a STEM degree.
taking on debt that is not needed is always a bad thing.

 

[Hawkeye10]

it is a horrible thing more so if they are not getting a STEM degree.
taking on debt that is not needed is always a bad thing.

My boys GF and her sister both have degrees, the sister is a wedding make-up artist and the GF is going to work for a catering company. She said that her parents were insistent that both go get degrees, and the parents made it clear years ago that they did not give one tinkers damn what the girls did after.

I too have a problem with that, money should generally be spent wisely, and the "University Experience" is not worth $100,000+, especially if it is mostly other peoples money.

 

[Absentglare]

Trump to propose scrapping beleaguered student loan forgiveness program ? report - MarketWatch

Well that royally sucks. This is a program that was contractually included in every loan promissory note I signed. I made major financial decisions based on the federal government's promise with this program. I could have refinanced my student loans at a lower interest rate through a private lender. I could have gone into a more lucrative field in the private sector. I could have put off buying a house until I paid down my balance. And now two billionaires are going to make the federal government renege on its contracts with people who made the apparent mistake of believing in going into the poorly paid public sector.

I am not saying the program isn't flawed and that caps should not have been put in place a long time ago but when you are talking about a program that people made huge life altering decisions about and it looks like you aren't even going to grandfather in those who have been doing their part, well...I think I have reached my limit. I am going to find Maggie's old post about things I can be doing and I am fully joining the resistance.

DeVos is poised to do the most policy damage to this country that we've seen in generations. She's essentially stealing from the future knowledge and opportunity of our children for the sake of corporate profits.

Her proposals in Michigan were objective failures.

DeVos' Michigan schools experiment gets poor grades - POLITICO

Her approach is about as tone deaf as "let them eat lead".

 

[ludin]

My boys GF and her sister both have degrees, the sister is a wedding make-up artist and the GF is going to work for a catering company. She said that her parents were insistent that both go get degrees, and the parents made it clear years ago that they did not give one tinkers damn what the girls did after.

I too have a problem with that, money should generally be spent wisely, and the "University Experience" is not worth $100,000+, especially if it is mostly other peoples money.

that was stupid of them to do. she could have gone to cosmetic school and the other pastry school.

student loans are loans and have to be paid back. if someone wants to party hardy for 100k then that is on them and no one else.
they shouldn't get off the hook.

I never would have been able to get my 4 year without SL. best decision I ever made.

since then my company has paid for me to get my PMP and my ITIL. both of which I passed.
the PMP was one of the hardest tests I had ever taken.

 

[CriticalThought]

I noticed a study a few months back that said something like 40% of those taking loans expect to never have to pay on any or most, they expect someone to come in and relieve them of the debt.

Maybe that is a bad thing, maybe if people know that they will be on the hook they will be more responsible.

Just Maybe.

Wow. Imagine that people sign a contract saying if they do certain things that their student loan will be forgiven. Wait...why is that hard to believe?

 

[CriticalThought]

that was stupid of them to do. she could have gone to cosmetic school and the other pastry school.

student loans are loans and have to be paid back. if someone wants to party hardy for 100k then that is on them and no one else.
they shouldn't get off the hook.

I never would have been able to get my 4 year without SL. best decision I ever made.

since then my company has paid for me to get my PMP and my ITIL. both of which I passed.
the PMP was one of the hardest tests I had ever taken.

My husband has his PMP and now I call him a pimp.

 

[Henrin]

How on earth is it welfare?

It is a program where if you agree to work in public service, usually at lower pay and harsher conditions, and you pay on your student loans for 120 monthly payments without defaulting, then the government will pay the remaining balance, as stipulated by a CONTRACT, your loan promissory note. Some companies do the exact same thing.

You literally earn it by...

A: working
B: making payments
C: limiting your career options to specific fields and options.

This is not handouts to people in need, it is a contract.

Because the government is paying for your education. Sure it's by contract, but that doesn't change much of the reality of the thing. All it means is that the government agreed to use other peoples money to pay for that persons loan by contract.

And why in the world would making payments matter at all? So what, you get to pay well below the needed amount to pay back the debt for ten years and somehow I'm supposed to care about that? Nope, I don't.

 

[Henrin]

Wow. Imagine that people sign a contract saying if they do certain things that their student loan will be forgiven. Wait...why is that hard to believe?

Yes, people are taking out these loans with the knowledge they have no obligation to pay them back. How is that ok?

 

[jimbo]

Trump to propose scrapping beleaguered student loan forgiveness program ? report - MarketWatch

Well that royally sucks. This is a program that was contractually included in every loan promissory note I signed. I made major financial decisions based on the federal government's promise with this program. I could have refinanced my student loans at a lower interest rate through a private lender. I could have gone into a more lucrative field in the private sector. I could have put off buying a house until I paid down my balance. And now two billionaires are going to make the federal government renege on its contracts with people who made the apparent mistake of believing in going into the poorly paid public sector.

I am not saying the program isn't flawed and that caps should not have been put in place a long time ago but when you are talking about a program that people made huge life altering decisions about and it looks like you aren't even going to grandfather in those who have been doing their part, well...I think I have reached my limit. I am going to find Maggie's old post about things I can be doing and I am fully joining the resistance.

From what I read, this is a WaPo story based on some documents obtained, and at best is a preliminary floating of a proposed change in regulations not yet even published. In other words, nothing to see here.

I expect this has more to do with the story than any real threat:

We are the Shadow Government. We are the deep state hierarchy out to undermine Trump and sow discord and chaos in the White House. Join the cause!

 

[holbritter]

DeVos is poised to do the most policy damage to this country that we've seen in generations. She's essentially stealing from the future knowledge and opportunity of our children for the sake of corporate profits.

Her proposals in Michigan were objective failures.

DeVos' Michigan schools experiment gets poor grades - POLITICO

Her approach is about as tone deaf as "let them eat lead".

We're talking college here.

 

[Absentglare]

We're talking college here.

Yes, we are. Reducing the ability for money-conscientious kids to acquire college educations applies a very unique filter to higher education: you either have students who are careless with money/debt, or who have inherited considerable wealth.

I don't see any benefit there except that it gives rich kids have an even more unequal playing field to dominate everyone else with.

 

[countryboy]

Trump to propose scrapping beleaguered student loan forgiveness program ? report - MarketWatch

Well that royally sucks. This is a program that was contractually included in every loan promissory note I signed. I made major financial decisions based on the federal government's promise with this program. I could have refinanced my student loans at a lower interest rate through a private lender. I could have gone into a more lucrative field in the private sector. I could have put off buying a house until I paid down my balance. And now two billionaires are going to make the federal government renege on its contracts with people who made the apparent mistake of believing in going into the poorly paid public sector.

I am not saying the program isn't flawed and that caps should not have been put in place a long time ago but when you are talking about a program that people made huge life altering decisions about and it looks like you aren't even going to grandfather in those who have been doing their part, well...I think I have reached my limit. I am going to find Maggie's old post about things I can be doing and I am fully joining the resistance.

Good. Why should taxpayers be on the hook for career students who study unmarketable subjects, and then whine and cry when they ​can't find a job?