<p>Jonri, I’m not really clear what your point is. I already covered all that. Some programs cover more than public service, which is why I said they “tend to be limited” and not “are always.” Schools like Harvard and Yale have endowments and employment rates that let them pay for more than just public service. Most other schools don’t. Start looking lower in the rankings than #1 and #2 (you don’t go to HYS for their LRAP anyways) and you’ll quickly see trends.</p>
<p>I also know that sometimes the forgiven debt is not treated as taxable income. I even cited the IRS circular explaining how and when that exemption applies. It covers only PSLF forgiveness, and not IBR and PAYE, which Bluebayou kindly brought up. That may change in the future (apparently because of how federal budgeting works student loans aren’t considered tax expenditures. I don’t really know why that is, but it should make it more likely the tax bomb gets dealt with), but it hasn’t yet. </p>
<p>I also know that it’s not simply a question of comparing merit offers. You should compare employment rates against graduating debt. I even gave an example earlier that I’ll quote for you: “If GULC offers her a free ride and Columbia offers sticker, GULC may well be the right call. That’s not like Columbia and, say, Emory, where no amount of cash should change the decision.”</p>