January 2, 2018
Should I bank on the PSLF program and take a job with at a not for profit hospital or go with private practice and consolidate my loans and repay them in whole?
May 3, 2014
This is a loaded question. I think when you compare your private practice options against the not for profit hospital, it should be a consideration, but in addition to the long term certainty of the program, you also need to factor in potential life changes that could alter your employment. Examples would include moving to a new city or deciding after 5 years that you must be in private practice. All I can really do is offer my thoughts on the long term viability of PSLF.
In order for PSLF to be eliminated, I count three main roadblocks:
– Political – Eliminating this program would likely be an extremely unpopular move.
– Legislative – PSLF is currently the law. It will take an act of Congress to change it.
– Contractual – Many Master Promissory Notes (federal student loan contracts) include the PSLF language.
The current proposed legislation that would eliminate PSLF (called the PROSPER act) would only apply to new student loan borrowers. I have no idea how much support there is out there for the bill.
I’d also note that despite the fact that both the house and senate tax bills eliminated the student loan interest deduction but the final version of the bill preserved it. Student loan advocates still have some pull in the legislative process.
My personal opinion is that people are probably safe making job choices based upon the continued existence of PSLF, but it is not an absolute certainty by any means. Up until the debt is forgiven, borrowers should be prepared for the possibility of a law change.
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