• Mr. Steven J. Muehler

Steve Muehler's Plan to Expand the Federal Student Loan Forgiveness Program

Updated: Apr 23


According to debt.org, a debt resource site, tuition costs at public universities have risen 344 percent since 1980, from $2,119 to $9,410. Tuition costs at private universities have risen 241 percent, from $9,500 to $32,410.


Likely because of this jump, the average 2017 graduate has at least $38,000 in student loan debt, according to the same site.


Many students rely on student loan repayment plans and forgiveness programs. However, students may soon have less repayment options—as if it wasn’t hard enough to pay back loans.


President Trump’s recent budget proposal would end the Public Service Loan Forgiveness program and change federal student loan repayment plans. It would also cut funding for federal work-study in half. Federal work-study provides part-time jobs for students with financial need and allows them to earn money to help pay education expenses. The proposal would affect loans that are taken out starting July 1, 2019.


While cutting funding for the federal work-study program might not affect many people, cutting down repayment options and eliminating forgiveness programs certainly can. People aren’t going to be able to pay back their loans faster if they are given fewer options on how they can pay it back.


The Public Service Loan Forgiveness program forgives federal student loan borrowers who have a full-time job and work more than 30 hours a week in a qualifying federal, state or local public service job or non-profit job. The borrower must have also made 120 eligible on-time payments over 10 years.


The program started in 2007, and nearly 750,000 borrowers have completed an employee certification form for the program.


If you don’t qualify for the Public Service Loan Forgiveness program, there are currently four other ways to repay your loans. Under the new budget, it would be narrowed down to one repayment plan.


Eliminating forgiveness programs and cutting down repayment options feels like a punishment. People go to college to get a better education so that they can get good jobs and have careers. In order to do that, scholarships and loans are needed.


Under my Administration, we would bring back the current Public Loan Forgiveness Program, and even expand the program for students who work in a qualifying federal, state or local public service job, or qualified non-profit job.


In short, and in just broad strokes, my plan would:


  • College Graduates who join the Active Duty United States Military:

  • Will have no Loan Payments during Active Duty

  • Will have 100% of their Federal Student Loan Debt forgiven after six years of continued Active Duty Service.

  • To qualify for the program, graduates must have maintained no less than a "C" average and must have attended no less than 80% of all course classes (average).

  • To qualify for the program, a student must have achieved an Associates Degree or higher from an Accredited University.

  • College Graduates who join the United States Military Reserves:

  • Will have no Loan Payments during their Reserve Service Time

  • Will have 100% of their Federal Student Loan Debt forgiven after ten years of continued Reserve Time Service.

  • To qualify for the program, graduates must have maintained no less than a "C" average and must have attended no less than 80% of all course classes (average).

  • To qualify for the program, a student must have achieved an Associates Degree or higher from an Accredited University.

  • College Graduates who gain full-time employment under a qualifying Federal Services Job, State or Local Public Services job:

  • Will have no Loan Payments during the full-time employment in their Federal Services Job, State or Local Public Services Job.

  • Will have 100% of their Federal Student Loan Debt forgiven after ten years of full-time employment in a qualifying Federal Services Job, State or Local Public Services Job.

  • To qualify for the program, graduates must have maintained no less than a "C" average and must have attended no less than 80% of all course classes (average).

  • To qualify for the program, a student must have achieved an Associates Degree or higher from an Accredited University.

  • Local Services shall include (but not be limited to):

  • Elementary School and High School Teachers & Administrators

  • Local Firefighters

  • Local Police Officer

  • Local Social Services provider

  • College Graduates who gain full-time employment (or are founder - owner operators) of a qualifying non-profit:

  • Will have no Loan Payments during their full-time work with the qualifying non-profit

  • Will have 100% of their Federal Student Loan Debt forgiven after fifteen years of full-time work with a qualifying non-profit

  • To qualify for the program, graduates must have maintained no less than a "C" average and must have attended no less than 80% of all course classes (average).

  • To qualify for the program, a student must have achieved an Associates Degree or higher from an Accredited University.

  • To work to expand the program to provide an incentive for private sector employers to provide Federal Student Loan Repayment programs for employees, my Administration will seek to obtain Federal Tax Credits for Employers who repay all or a portion of an employees Federal Student Loan(s).


Steve Muehler is the Founder & Managing Member of the Private Placement Markets:

About Mr. Steve Muehler, Founder & Senior Managing Member:

Personal Site: http://www.SteveMuehler.com

Personal Site: www.StevenMuehler.com

LinkedIn: https://www.linkedin.com/in/steve-muehler-819a056a/

Twitter: https://twitter.com/stevenjmuehler

Facebook: https://www.facebook.com/steve.muehler

Crunchbase: https://www.crunchbase.com/person/steven-muehler

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© 2017 by Mr. Steven J. Muehler