re: Draft Education Dept. budget to possibly cut Public Service Loan Forgiveness Program

This program doesn't bail anyone out.

It's typically geared towards professionals who can pay off their loan in order to remove the penalty for working for a non-profit: lower salary.

Like I said, this will blow up healthcare and piss off a lot of white collar workers. Total loser for the GOP.

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I've heard that's a good route. I'm clerking at a similar firm to your's at the moment, really liking it.

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I've been in 24 years, been a jag the last 12 or so. When I hit 58 its going to be about 3,400 hundred a month for life and lifetime medical. If I get promoted again it will be close to 4k a month plus I make (after taxes) a grand a month.

Take a look at it.

And I thought this was a odd component too:

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and would sharply reduce grants focused on career and technical education.

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So they want EXTRA money for school choice, even though it's supposed to be in demand anyways, but they want to take away money to train people for those blue collar type jobs that Trump was going to save.

People made decisions with this in mind. Some are years into it. Just taking it away would really screw a lot of folks. I'm early enough into it where I'd be pissed but would still have a manageable debt load.

People 8-9 years into it who have been using idr would be fricked and very regretful of their decision to trust fedgov.

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These people have to make a decade's worth of payments and are working for under market value. Do you want your D.A's office to have good prosecutors? Your local VA hospital to have good doctors? Etc

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So then why don't they work somewhere else for full market value?

Isn't this program pulling good people out of the private sector and subsidizing their move to the public sector? Doesn't it encourage taking on loans that a person might not otherwise take, because they know they only need to repay 10 years worth? Doesn't this slow or limit one's ability to transfer between sectors, making the labor market less fluid?

If a huge student loan is the only way to acquire these jobs (it usually isn't) , then subsidizing those loans just makes it that much harder for someone to get into that field, especially if they don't want to work public sector. It jacks the prices up, and creates an over supply of skills the market didn't ask for, and won't pay for. It also reduces the perceived value of those without advanced degrees, which aren't necessary in most fields and for most jobs. Forcing older, established professionals back into school programs to keep up with younger people who took advantage of these programs and skewed the workforce. It just sucks people into the program and into government jobs, which we need fewer of to begin with. Now cutting government jobs becomes an economic disaster, and people have massive loans that they cannot repay outside of their government cubicles. People lives are hinging on this shite. The only answer will be the creation of more unnecessary jobs to prop up this bubble. It will never end.

Because of programs like this, education is more expensive, more people have more debt, and the incentive to work private sector is low for most people who take massive student loans. this is creating a surplus of people in taxpayer funded public jobs that are NOT resulting in production, but instead consumption of resources.

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very regretful of their decision to trust fedgov

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Hard lessons suck. I learned it too

Some people want to serve in capacities such as a prosecutor, VA Doctor, etc. novel idea, I know.

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So then why don't they work somewhere else for full market value?

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Because the federal government distorted the free market by backing student loans. In some instances working in the public sector can be more beneficial than private pay if you hit PSLF.

Also in certain sectors entry level jobs are hard to come by. That means people often spend a few years in the public sector. Once you are in for a few years, it can often make sense to try and finish your 120 months.

Also some people just have a passion for public sector work?

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Because of programs like this, education is more expensive, more people have more debt, and the incentive to work private sector is low for most people who take massive student loans. this is creating a surplus of people in taxpayer funded public jobs that are NOT resulting in production, but instead consumption of resources.

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You mean we would all be better off if the government stopped backing student loans? You are totally correct. That would save a much bigger amount of money than this cut. However stopping student loans would be political suicide, so Trump hasn't done that.

There are some loans that repay over 15. Also it is typically combined with IBR or a similar program.

I start repaying mine in Jan. $90K. My salary doesn't even let me qualify for IBR. I'm fricked.