Currently working as a prosecutor for 3 years. Previously worked in house for 2 1/2. Have invested 3 years into loan forgiveness. Have loan debt of about 167k, with interest to total about 220k. Currently making 90k to go up marginally in September about 94k. Got an offer for a private firm doing employment law for 145k with interviews with different private firms coming up. Kind of debating between sticking with govt in a higher paying agency or moving into billables world. Thoughts?

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There are 3 main things to consider, and only you can decide how to weigh the three:

1. The financial breakeven as a function of time. There longer you sit in PSLF, the more you haven’t been paying down your loans. So the value of PSLF compared to paying them off increases as you approach 10 years. Which means the salary increase you would need to break even if you were to move from a PSLF to a non-PSLF job gets larger the longer you stay on the PSLF track. Use a loan calculator and make some reasonable PSLF and non-PSLF salary assumptions, project out over the next 7 years, and compare.

3. The work-life balance. PSLF-eligible roles are often (but not always) better lifestyle roles than firms. I never got along with billables, but you may have a better relationship with them. You have to decide how much that’s worth to you.

3. The risk that PSLF isn’t meaningfully viable in 7 years. The first borrowers were eligible for loan forgiveness under PSLF starting in 2018. There are plenty of stories from eligible borrowers who ran into dead ends at DEd between 2018 and 2020. Lots of slow rolling forgiveness applications, failures to respond, etc. At one point there was a proposal to means test borrowers who were already eligible by statute, with the goal of only forgiving a portion rather than everything. The current administration has been processing forgiveness in a more timely way from what I’ve seen, but there’s no guarantee that a future administration will do the same.

Thank you for your input !

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