One of my worst nightmares may be on the verge of coming true.
In 2007 the Public Service Loan Forgiveness Act was passed, and boy was it mostly useless.
It states that if you work in the broadly defined ‘public service‘ field for 10 years, you can get the government to forgive the balance of your government loans. You also had to be making your loans payments consistently for 10 years on one of several approved plans.
The income contingency plans, which were for people making lower salaries that would not allow them to make regular payments. (Kudos to you people, I am glad you are going to get this!)
The other repayment plan that was acceptable, was the 10 year repayment plan. Yes folks, make monthly payments on your loans for 10 years on the 10 year plan and we will forget whatever is left. If you do not have the math for this, it means you will have ZERO dollars forgiven.
The vast majority of us were on an extended plan (25 years). It did not count for that plan and therefore did not count for me or my wife.
I stewed for years over this dumb law with good intentions.
Fast forward to 2017, we came into a sizable chunk of money all at the same time. And like any good FIREbug, I looked around for the best way to use that windfall. Long story short, I used it to pay off the remaining $80,000 worth of law school student debt we still had even after making payments steadily for over 16 years. My heart soared with joy and a heavy weight had lifted off my shoulders. No more debt except for mortgages.
Fast forward to the 2018 budget showdown and lo and behold somebody has a bright idea. They are now going to fix the glaring faux pas. Of course we meant to include that extended plan in our original scheme. Sorry for the overlooked detail. And let’s set aside 350 million to clear up that little oversight.
I am sitting here of two minds.
Grateful that the loans are dead and I have the life I have.
Quietly raging about all the lovely things I could have done with that money. Se La Guerre