Federal Proposal to Change the Public Service Loan Forgiveness and Federal Student Loan Programs
As a constituent, I urge you to reject provisions in the President's Budget for FY 2021 that call for the elimination of both the Public Service Loan Forgiveness (PSLF) program and federally subsidized student loans.
The President's Budget seeks to do away with these two programs, and instead offers a new loan forgiveness program that would allow all undergraduates to be eligible for loan forgiveness if they make 15 years of on-time payments in an income-driven repayment plan.
However, these proposed monthly payments would be higher than they are in the current monthly income-driven plans. People in loan repayment plans are already burdened by high payments, which limit their ability to purchase homes, access credit, save for their retirement and put money aside. This new plan could exacerbate these problems for many people.
Of course, unlike PSLF, this would not encourage individuals to pursue careers of public service, such as education or health care.
The elimination of federally subsidized loans would put a higher debt burden on student borrowers as they would only have the option of taking private or unsubsidized loans, on which interest accrues during their time in college.
Thank you for your consideration of this important matter. I respectfully ask that you bring up these issues with your conference. I look forward to a reply to my letter.
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