Since President Trump has been in office, we have seen a rise in concerns of the future PSLF.
We do not believe PSLF will be retroactively eliminated, for a number of reasons, some of which we blogged about earlier.
We do not see President Trump eliminating the PSLF program also because during his campaign, he basically offered a student loan plan that would be almost as generous as the PSLF program, capping repayment at 12.5% of a borrower’s income with forgiveness after 15 years of payment.
President Trump’s student loan plan reduces the payment period from 20/25 years under IBR/REPAYE/PAYE to 15 years. In comparison, the 10 year forgiveness under PSLF is merely 5 years less than 15 years (oh math!).
We believe that the extreme reduction in the payment period from 20/25 years to 15 years is an indicator that President Trump does not view the PSLF 10 year forgiveness term unfavorably.