Public Provider Loan Forgiveness: DOD and its particular Personnel Could Take Advantage Of Additional System Information

Public Provider Loan Forgiveness: DOD and its particular Personnel Could Take Advantage Of Additional System Information

People provider Loan Forgiveness system is supposed to encourage individuals to enter general public solution. It forgives the student that is federal balances of qualified borrowers who possess made at the least decade of re re payments whilst in specific general general public solution jobs.

The Department of Education denied 94% of system candidates through the Department of Defense. (We previously discovered a 99% denial price for several candidates.) The absolute most denial that is common weren’t sufficient payments and incomplete applications.

We made 5 tips for DOD and Education to boost understanding of the scheduled program and its particular demands by sharing information and collaborating with one another.

Few Department of Defense candidates had been approved for the Public provider Loan Forgiveness system.

Exactly Exactly Exactly What GAO Found

Personnel into the Department of Defense (DOD service that is)—including and civilian employees—may qualify for federal education loan forgiveness through the general public Service Loan Forgiveness (PSLF) system when they stay static in general public service employment for a decade while making 120 qualifying loan re re payments, among other demands. As of January 2020, Department of Education (Education) data show that 287 DOD borrowers received loan forgiveness, while 5,180 DOD borrowers (about 94 %) had been denied (see figure). The most typical good reasons for the denials are not enough qualifying re re re payments and lacking home elevators the proper execution. GAO previously reported in September 2019 a denial that is overall of 99 % for several PSLF applications submitted by borrowers. More details from DOD may help applicants that are potential conscious of all eligibility needs.

Quantity of Department of Defense (DOD) Personnel Approved or Denied for Public Service Loan Forgiveness (PSLF), at the time of 31, 2020 january

Note: The “Civilian” groups consist of all civilian workers within DOD, like the services that are military.

As the administrator, Education has specialized information about the PSLF program but has not yet provided complete information with DOD. Education officials never have shared with DOD summary information on its workers that have taken actions to follow PSLF or solution users whom might be qualified. Education officials additionally reported they will have maybe not provided the many benefits of with the PSLF program along with DOD’s education loan payment program. Education officials also have perhaps perhaps perhaps not updated the learning education loan guide for solution users with particular info on PSLF. Education might take steps that are additional enhance information sharing about PSLF with DOD workers. DOD officials expressed desire for getting more system information. Collaboration among the list of divisions and updated system information may help DOD officials and its particular workers to just simply take advantage that is full of.

DOD doesn’t commonly utilize the PSLF program for recruitment and retention to market readiness despite dealing with challenges in some specialty job industries. Some DOD officials we interviewed claimed they preferred to make use of other DOD advantages and incentives that DOD straight settings, such as for example bonuses or DOD’s education Go Here loan payment system. DOD could enhance its recruitment and retention efforts to market readiness with department-wide and guidance that is service-specific the way the PSLF system might be utilized as an instrument for such efforts.

Why GAO Did This Research

At time whenever education loan financial obligation continues to install for most, the PSLF program—established in 2007 and administered by Education—is designed to encourage people to pursue jobs in public areas solution.

Senate Report 116-48 included a supply for GAO to analyze the effectiveness of the PSLF system at advertising army and recruitment that is civilian retention also army readiness. GAO’s report assesses the level to which (1) DOD workers pursue and get loan forgiveness through the PSLF system, (2) Education has shared information with DOD officials and its particular army and personnel that are civilian this program, and (3) DOD utilizes the system for recruitment and retention to advertise readiness.

GAO analyzed education loan information from Education together with PSLF servicer from the beginning for the system through January 2020; evaluated laws that are relevant papers, as well as other information associated with PSLF, advantages, recruitment, retention, and readiness; and interviewed DOD and Education officials.