The Risk of PSLF and Taxable Forgiveness is Vastly Overestimated


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By Travis Hornsby. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Many student loan borrowers are worried about the risks of relying on Public Service Loan Forgiveness (PSLF). In the episode, find out why these risks are vastly overestimated as well as the histories of PSLF repeal attempts and taxable loan forgiveness. Also learn what you need to do in the extremely unlikely case that forgiveness programs are eliminated.

In today’s episode, you'll find out:

  • Other programs like PSLF that haven’t been repealed, despite massive costs
  • The history of PSLF repeal attempts
  • Why politicians are unlikely to try to have PSLF completely taken away
  • What would happen in the unlikely event that PSLF was repealed
  • How your savings rate affects how long you’d need to work before retiring
  • The two kinds of people worried about PSLF going away
  • The history of taxable loan forgiveness
  • Government approaches to tax bombs
  • Why having a high savings rate means you don’t need to worry about suddenly owing your forgiven loan balance
  • How Congress might deal with taxable loan forgiveness in the future
  • The history of income-driven repayment plans
  • The idea behind the possible new Pay As You Earn plan
  • What could happen if any of these programs were eliminated

Full show notes at:

46 episodes