Can You Trust the Public Service Loan Forgiveness (PSLF) Program? (Money Guy Reacts to Dave Ramsey)
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- เผยแพร่เมื่อ 17 พ.ย. 2023
- The Public Service Loan Forgiveness (PSLF) program has a bad track record, but improvements have been made to improve the success rate and forgive more loans. Should you rely on the government to pay off your student loans?
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proud PSLF graduate, debt free!
Thank you for this video. Dave completely dropped the ball here. He gave terrible financial advice to his caller because his team didn't put in the time to understand the context and current situation.
Even if they did, Dave is too political and anti debt to recognize that things have changed and gotten better in terms of loan forgiveness in the last few years. Just go back to how he reacted to the plan to forgive $10k to see. He was giving bad advice all over the place back then too. While that debt didn't get forgiven, he was telling people to pay it off just for the principle of the matter even though they were 0% interest loans. The advice was coming from a place of conservatism and anti-debt; not from a place of sound financial accounting.
Their lack of political or religious pontificating is why I prefer the money guys. So I hope they keep the neutral ground and keep doing what they're doing.
His feedback was also irresponsible. Hopefully he will get the facts and make a corrective statement.
The facts are it is a failure. It cannot possibly be a success because it is run by Americans, and America is the least competent developed country on the planet. Anything they touch they screw up. @@kimberlypage5285
I’m one of the people who received public service loan forgiveness. It did require staying on top of all the paperwork and following up with old employers etc. But it did finally happen.
It’s important to note that it’s not just federal gov employees, but also state, municipal (including teachers), and non-profit employees that may qualify.
My wife and I are both state employees on track for a combined $170k of forgiveness. I’m 2 years away and she’s 6.
Income drive repayment can also be amazing because the monthly payments are calculated with your AGI, which you can reduce drastically with pretax retirement contributions. My philosophy has been to pay myself, not the government, so we max those out.
that's been my strategy as well. I'm on IDR so my interest rate is effectively the minimum payment each month. In the parlance of Dave Ramsey, I'm keeping the loan as a pet. I'm just paying enough to service the loans (which has been nothing for the past few years) and investing my money. The loans ought to be forgiven after 20 years or so. If they are fabulous. If not, the 36,000 I invested today rather than paying off the loans will have outpaced my monthly payments servicing the loans. And I can just pay cash out of my investment account to be rid of them.
oh it works if you follow the rules and submit all the proper documents. Mine was forgiven a few months ago.
My loans were forgiven last year. I worked as a teacher and for a non-profit so I agree with your statement--you have to follow the rules and turn in the documents.
That's total garbage. It only works in an alternate universe where Americans are actually capable of being competent. In this universe, they can't help but screw everything up, and so it does not work.
My wife is a teacher in her 8th year of teaching. Her federal student loans are our last debt despite our home. We could start paying them ahead but instead have been putting the money away. She always submits her papers to certify every year. You can log into the site to track your certified hours and hers is right on track. If they don't get forgiven, we are prepared to pay them but why not wait the 2 years and see.
I had my loans forgiven two weeks ago. I was shocked and still am. I expected listening to Dave that it was going to be rejected and was pleasantly surprised. I still log in to see the zero balance.
As a public school teacher, this video makes me a happy man! I certify every few months just to make sure nothing gets lost in the sauce!
Although not exactly the same, I got Teacher loan forgiveness last month for working 5 years as teacher. The great thing was for 3 years I didn't have any interest due to COVID. I got $17,500 forgiven and now have no debt except my mortgage! 🎉
The reason people got “denied” was not lack of organization. The ECF did not differentiate annual certification from an actual request from someone saying they met the 120 payments. Thus all the “applications” for everyone certifying their employment along the way once each year as recommended were “denied”. Thank you for reporting some truth on this.
I personally, just last year, was able to take advantage of the PSLF program. I used time working for a local non-profit, local law enforcement, and federal military time while with the National Guard to achieve the 10 year minimum. It’s a good program that works.
This is why my wife and I follow your advice when it comes to personal finance. Thank you for taking topics and actually looking into them deeply. (Also, there are other types of forgiveness out there. My wife had about $12,000 forgiven because she was a Special Education teacher.)
which program forgives that amount? my spouse is also in that field.
Dave was operating on old/premature data. The other problem was that the DoEd during a large portion of that first period of eligibility was highly combative towards people trying to apply for forgiveness. It was only in the past 2 years that people who did qualify have been given the opportunity to actually prove their eligibility, request forgiveness, and actually have a chance of receiving it.
Edit: just to clarify, I'm not defending Dave. He shouldn't have said what he did because he was woefully uninformed, but then so was everyone else. October 2022 was the deadline to submit paperwork for the first real crack at general PSLF. Most people only started getting their forgiveness letters early/mid 2023. The information coming out around this time was further muddied by the Biden forgiveness for all plan, and many people were conflating the two.
Dave is overly political and generally sees any gov program as a scam.
@@bobloblaw9362 Politics aside, most government programs ARE a scam, at least to the taxpayers.
FAFSA lays it all out for you pretty clearly. I should add that you can get PSLF if you work for a non-for-profit that files as a 501(c)(3) organization like many hospitals. FAFSA even has a tool where you can check to see if your employer will qualify you for PSLF.
Thank goodness for your video. I am so tired of the misinformation. Getting rid of student loans or repaying in full (not income driven) payments isn't the right choice for everyone, especially not public service employees!
PSLF...you also have to PAY the 120 payments...the caller on Ramsey's show said he hadn't paid since the pandemic. Meaning he will not have met the 120 payments required for the PSLF.
One thing to remember is Dave gets a LOT of people who think that just waiting the 10 years, and no payments or legwork, still means your loans will be forgiven...there are people not in PSLF who think without making payments for 25 years your loans will just be forgiven.
Dave's big thing is to not wait on the government to save you. The government is a fickle mistress, and things get changed often, sometimes without any fanfare. And that includes changing the rules behind how you get forgiven.
You should plan for no forgiveness along with getting your records in order...that way if you aren't forgiven (cause nothing is a guarantee) you aren't shocked and have your backup plan in place.
Dave regularly runs sponsored ads for student loan debt consolidation company. Of course he doesn't want people to get loan forgiveness, because it's not in his best interest. He would also have to give Biden credit for beefing up the program which he definitely doesn't want to do.
I have never seen ANY debt consolidation ads run by him...he hates those...and if it's YT ads, he doesn't get to pick those ads.
Great job guys...I am so glad you all have set the record straight
The application is the same thing as the annual update. So everyone that does the annual update is recorded as a denial.
Thank you for this correction. My wife and I see both sides of this. My wife is a public school teacher and had the remaining balance of her $50k forgiven this year through PSLF but it took just over 13 years because of some of those previous PSLF problems. I have 3.5 years left on my commitment as a PA at a 503c nonprofit org and now state employee. I am dotting my “i”s and have all my paperwork updated every year to the remaining balance of mine forgiven despite what Mr. Ramsey says. Thanks guys!
I know you guys recommend trying to keep your student loans under your projected first year salary, but so many of us found you too late for that.
Would love to see a video about who income based repayment makes sense for!
So beneficial to have sound advice to check against DR! Luv u guys ❤
Sound advice NEVER comes from the mouth of an American.
Yeah Dave has some good stuff but he hasn’t kept up on the recent developments. Just got notification after 10 years. Bumps on the road but stayed diligent and kept paperwork to argue my case.
For those saying that Dave is misinformed. BS. He knows exactly what is going on eith PSLF. He just does not have it in him to encourage people to utilize a government program to pay off their debt.
He knows that the American people and government are not capable of being competent. It's a failure because it has Americans in charge.
He should still tell people the truth and let them decide for themselves like he does on his calls. He says "this is what I would do if I were in your shoes but I know you are not going to do it," with some callers.
He teaches self reliance...not to expect the government to come thru on any promise...cause no one is guaranteed forgiveness, and the rules can change.
It works!!!! Mine was forgiven!!! Im still checking my account and seeing the 0 dollar balance
I consolidated my parent for my son with my student loan and they were all paid off.
These guys are the best out here no cap. Good information.
I’m glad I pulled through, despite the crises. I am retiring next yr at 55 with 3 houses paid off worth 4.5 million. One is my place of residence the other 2 properties will give me $80,000per/yr rent . I will have an income stream of $20,000 per mnth through my super which gives me total $240,000 a yr to live comfortably. I have no debts _.._ Stay Motivated!!
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Thank you for clarifying Dave's stupid comment. It does work and it can be tricky and time consuming to get the discharge/forgiveness under PSLF but both my spouse and I have done it. I think the stat was so low due to the required 10 + years of public service and I think you have to be in public service at the time to get loans forgiven. Thanks to all the public servants!
To say it works is to say Americans are capable of being competent, which as you and I know is total BS. There are still more that qualify that are declined than actually receive forgiveness, and there always will be.
We do not agree. I think it has more to do with stubborness and sticking to it then competence. People are impatient.@@amireallythatgrumpy6508
Competence is a factor. If your government was competent the system would be working like clockwork. It isn't. @@amorylovin2137
@@amireallythatgrumpy6508and the government can decide to change the rules at any time.
I paid mine off but not because Dave told me to. For me it was about the peace of mind not having to be the kid caught between mom and dad fighting in DC. I’m not totally opposed to debt. I’m not trying hard and heavy to pay off my car, for instance. But I am glad to be paying off my student loans while im still living at home
Dave’s wrong. My wife got her 115k in debt forgiven by the PLFP.
Dave also told people not to take out PMI loans pre pandemic and anyone who took that advice got SCREWED.
I’ve come to realize Dave is on personal crusade against the government and/or debt. I’m not a fan of either but he needs to be a better steward toward his viewers.
Yeah he's got really outdated information or he's interested in misleading people. I'm at 117 payments. I also got 34 months credited under the waiver that previously didn't count. January 2024 120,000 gone. I've also helped other friends in the end between myself and others I've helped it will come out to about 250,000 discharged.
Do they give people back payments for what they’ve already paid off? Or is it only for what you’ve got left to pay off after the 10 years?
Only for what you have left after 10 years. They may take several months to actually forgive your loans after the 10 year period and you’ll have to keep paying on them in the meantime, but once your application is accepted you will get backpay for any payment you made AFTER the 10 year mark
🚨**I think I should just start a TH-cam debunking Dave ramseys theories with facts** 😂😂😂😂
Ramsey sucks. He’s good at pulling people out of severe debt. Terrible advisor beyond that. Investment advice sucks, he injects his religion and politics into everything.
"federal service" LOLOLOL
Not true! $65k forgiven in September 2023 ❤❤❤
It would suck to get to the end of the 10 years and then not get it forgiven.
Can you trust the program? YES.
Is the program legitimate and guaranteed for someone that qualifies? YES.
However, should someone rely on it? NO.
It is totally legit. Just not right for all student loan borrowers.
Exactly...don't rely on a government program. The same people who make the rules can change the rules.
Dave comes into his show with major bias against anything government/political related...things change.
Not really. Americans are the same incompetent failures they always were.
Tax payers are repaying the debt.
Thank you
: )
This is why I don't care for Ramsey's show in recent times. He let's HIS POLTICS interfere with sound advice.
Dave is politically against peole taking out student loans not paying them back. Too bad, that's not the law.
Mines were forgiven 🤷🏽♀️
Mines
Dave is so wrong here, advising people to pay back loans that will be forgiven due to public service. He is being hardheaded and will not change his view one this. My coworkers wife jsut had her remaining loands forgiven as a teacher, seems very simple, especially considering the last 3 years under COVID have been a give me.
For most people who qualify, they will never be forgiven even though they should be.
Second
Elf
Um...who is Dave Ramsey? More importantly, how can he be so spectacularly wrong--yet yammer on like he has all the right answers?
Because that's what Americans do. They're always spectacularly wrong and yet yammer on like they're right.
First
Third 😂
My loans were forgiven under this program. $27k gone! Thank President Biden.
Biden didn't do anything...PSLF has been around for awhile. They had to get their stuff in order so it wasn't obvious they weren't paying on the PSLF promises.
The Money Guy show needs to stop pulling their punches with Dave Ramsey.
Why is that? Bad information is bad information, PERIOD. You might like him, but that has nothing to do with how competent he is. I've watched him live before and I wasn't impressed... good show, but he talks to people who will swallow just about anything. He prays on complete ignorance to impress simpletons.
You need to learn what pulling punches means. He's accusing the Money Guy of holding back when he should have been more critical of Ramsey, PERIOD. Stay in school, kid. @@MasterKenfucius
big waste of tax payer money.
Mine were forgiven through PSLF. Nearly half a million. It's being fixed. Ramsey is wrong.
Dumbest thing I’ve ever heard Dave say. It’s dangerous. Follow the guidelines and it’ll be forgiven, just like my wife had hers forgiven.
Americans are not capable of competent. That means that there are more that qualify that are declined than receive forgiveness.
Except they aren't "forgiven"... the rest of us are just paying them for her.
TRUST THE GOVERNMENT
Hot take: Dave knows exactly what he’s doing. He wants people to pay their own debt. Why should people without degrees or people that already paid have to subsidize others. Let the shitstorm begin. 😋
Because it was part of the deal of their employment? By that logic why should we pay federal employees anything, they should pick up a second job delivering pizzas if they want money for stuff.
@@ctownskier It’s taxpayer money, they shouldn’t be able to offer it at all. If Google wanted to do that, fantastic.