To: President Donald Trump
Tell President Obama Not to Retroactively Penalize Public Servants with Loan Program Change
As part of his 2015 budget, President Obama has proposed changes to the public service loan forgiveness program that could dramatically impact the lives of many professionals who have chosen to pursue a career in public service. The federal loan program made $43 billion last year -- more than Exxon and Apple -- but this change would dramatically increase monthly payments and dramatically lower the cap for forgiveness for those who have chosen a career in public service. Professionals who went to school and made career choices based on this promise would have it yanked away. President Obama wants to encourage public service, but now wants to remove the only financial path for making it work. Tell the White House that these reforms are misplaced.
Please sign this petition: http://wh.gov/ly4yq. We need 100,000 signatures by April 5 to get the President to respond.
Please sign this petition: http://wh.gov/ly4yq. We need 100,000 signatures by April 5 to get the President to respond.
Why is this important?
When I decided to go work for a nonprofit environmental group, I did so in part because the government promised to forgive the balance of our loan debt if I worked in a public service (NGO) job for 10+ years. This made the corresponding dip in income palatable. With it came lower monthly payments (based on income), but the tradeoff was that we would accrue much more interest over time. This was okay if the government was going to forgive the debt. Based on that promise from the government, I declined a job at a law firm and went to work an environmental non-profit dedicated to river restoration.
Now, President Obama is proposing a change that would penalize me for making the decision retroactively. The changes would increase my monthly payments by 5X, and would revoke the loan forgiveness promise that I relied upon, and instead cap it at an unreasonably low level. These changes make the prospect of having children, buying a house, or continuing public service career paths very difficult.
President Obama's proposing this change under the auspices of reducing the cost of higher education. But instead of requiring higher education institutions to limit tuition levels (to qualify for federal loans), or imposing the risk of default on those schools, he's chosen to impose the penalty on students, and those dedicated to missions that serve the public interest.
Now, President Obama is proposing a change that would penalize me for making the decision retroactively. The changes would increase my monthly payments by 5X, and would revoke the loan forgiveness promise that I relied upon, and instead cap it at an unreasonably low level. These changes make the prospect of having children, buying a house, or continuing public service career paths very difficult.
President Obama's proposing this change under the auspices of reducing the cost of higher education. But instead of requiring higher education institutions to limit tuition levels (to qualify for federal loans), or imposing the risk of default on those schools, he's chosen to impose the penalty on students, and those dedicated to missions that serve the public interest.