The future of Public Service Loan Forgiveness?

[lawsman92]

So im gonna have roughly 30k or 40k of student loan debt by the time I graduate next year. Before I get into the field of emergency management (where I want to be), I most likely have to work in public safety for around 5 years for experience. I am already an EMT-B so I will work in EMS, where I want to work to be a paramedic. Since I will be working in EMS and then govt emergency management, id be eligible for PSLF the whole time. Sounds good and all, but what happens if they cancel the program within the next 10years? Would I have just wasted a bunch of money, and accured a lot more interest on the loans? Can the govt just cancel PSLF at anytime for the people who have been on the plan for multiple years. I would be really mad if I got 9yrs into the plan and the program gets cancelled all of a sudden.

[lorraineb]

You need to ask the government program that runs the program and ask them specifically what would happen if the funding gets cancelled. That is where you'll get the best answer.

[SeanH]

This is a frequent discussion among medical students and its a hard topic. There's no sign-up or opt-in - you just follow the plan and hope the system in still in place down the road. You are probably aware of this, but I'll bring it up regardless. There are tax implications should you qualify and receive forgiveness (occasionally referred to as some sort of cheesy combination of forgiveness and Armageddon, "forgivageddon"). Essentially you owe taxes on whatever is forgiven.

[snafu]

Do you think the government can afford to forgive the sums owed under the existing program?