The general public provider Loan Forgiveness system is supposed to encourage visitors to enter general public service. It forgives the federal education loan balances of qualified borrowers that have made at the very least ten years of re payments whilst in particular public solution jobs.
The Department of Education denied 94% of program candidates through the Department of Defense. (We formerly 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 improve knowing of the system as well as its needs by sharing information and collaborating with one another.
Few Department of Defense candidates had been authorized when it comes to Public provider Loan Forgiveness system.
Exactly Just What GAO Found
Personnel when you look at the Department of Defense (DOD service that is)—including and civilian employees—may be eligible for federal education loan forgiveness through the general public Service Loan Forgiveness (PSLF) system when they stay static in general public solution work for a decade which makes 120 qualifying loan re re re payments, among other needs. At the time of January 2020, Department of Education (Education) data reveal that 287 DOD borrowers received loan forgiveness, while 5,180 DOD borrowers (about 94 %) had been denied (see figure). The most frequent grounds for the denials weren’t enough qualifying re re re payments and missing all about the shape. GAO formerly reported in September 2019 a denial that is overall of 99 per cent for several PSLF applications submitted by borrowers. More details from DOD may help applicants that are potential conscious of all eligibility demands.
Quantity of Department of Defense (DOD) Personnel Approved or Denied for Public Service Loan Forgiveness (PSLF), at the time of January 31, 2020
Note: The “Civilian” groups consist of all civilian workers within DOD, such as the army solutions.
As the administrator, Education has specialized information about the PSLF program but have not shared complete information with DOD. Education officials never have provided with DOD summary details about its workers that have taken actions to pursue PSLF or solution people whom might be qualified. Education officials additionally claimed they’ve perhaps perhaps maybe not provided the many benefits of utilizing the PSLF system along with DOD’s education loan payment system. Education officials also have not updated the learning education loan guide for service users with particular information about PSLF. Education might take extra actions to enhance information sharing about PSLF with DOD workers. DOD officials expressed desire for acquiring more system information. Collaboration among the list of divisions and updated system information may help DOD officials as well as its workers to just simply take complete benefit of PSLF.
DOD will not commonly make use of the PSLF program for recruitment and retention to advertise readiness despite dealing with challenges in some specialty profession 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 instance bonuses or DOD’s education loan repayment system. DOD could enhance its recruitment and retention efforts to market readiness with department-wide and service-specific guidance about the way the PSLF program could possibly be utilized as an instrument for such efforts.
Why GAO Did This Research
At a right time whenever education loan financial obligation continues to install for a lot of, the PSLF program—established in 2007 and administered by Education—is meant to encourage people to pursue professions in public places solution.
Senate Report 116-48 included a supply for GAO to review the potency of the PSLF program at advertising armed forces and recruitment that is civilian retention in addition to armed forces readiness. GAO’s report assesses the degree to which (1) DOD workers pursue and get loan forgiveness through the PSLF system, (2) Education has shared information with DOD officials and its own armed forces and personnel that are civilian this program, and (3) DOD makes use of the system Idaho auto title loans for recruitment and retention to market readiness.
GAO analyzed education loan information from Education and also the PSLF servicer right from the start associated with system through January 2020; evaluated relevant laws and regulations, papers, along with other information pertaining to PSLF, benefits, recruitment, retention, and readiness; and interviewed DOD and Education officials.