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

The general public provider Loan Forgiveness system is supposed to encourage individuals to enter general public solution. It forgives the federal education loan balances of qualified borrowers that have made at the least a decade of re re re payments whilst in particular general general general public service jobs.

The Department of Education denied 94% of system candidates from the Department of Defense. (We formerly discovered a 99% denial price for many candidates.) The absolute most denial that is common are not enough payments and incomplete applications.

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

Few Department of Defense candidates had been authorized for the Public provider Loan Forgiveness program.

Exactly What GAO Found

Personnel within the Department of Defense (DOD)—including solution users and civilian employees—may qualify for federal education loan forgiveness through the general public Service Loan Forgiveness (PSLF) system when they stay in general general public solution work for a decade which makes 120 qualifying loan re re payments, among other needs. At the time of January 2020, Department of Education (Education) data show that 287 DOD borrowers received loan forgiveness, while 5,180 DOD borrowers (about 94 percent) had been denied (see figure). The most typical good reasons for the denials are not enough qualifying re re re payments and lacking information about the proper execution. GAO formerly reported in September 2019 a general denial price of 99 % for many PSLF applications submitted by borrowers. Additional information from DOD may help applicants that are potential conscious of all eligibility needs.

Amount 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 armed forces solutions.

As the administrator, Education has specialized information about the PSLF program but has not yet provided information that is complete DOD. Education officials haven’t provided with DOD summary information regarding its workers who possess taken steps to follow PSLF or solution users whom might be qualified. Education officials also claimed they will have perhaps maybe not provided the many benefits of utilizing the PSLF system along with DOD’s education loan payment system. Education officials have perhaps not updated the education loan guide for solution people with particular home elevators PSLF. Education could just take extra actions to enhance information sharing about PSLF with DOD workers. DOD officials expressed desire for getting more program information. Collaboration one of the divisions and updated system information may help DOD officials and its particular personnel to just simply just take complete benefit of PSLF.

DOD will not commonly utilize the PSLF program for retention and recruitment to advertise readiness despite dealing with challenges in some specialty job areas. Some DOD officials we interviewed reported 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 payment system. DOD could enhance its recruitment and retention efforts to advertise readiness with department-wide and service-specific guidance about 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 will continue to install for most, the PSLF program—established in 2007 and administered by Education—is meant 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 promoting armed forces and recruitment that is civilian retention along with armed forces readiness. GAO’s report assesses the level to which (1) DOD workers pursue and receive loan forgiveness through the PSLF system, (2) Education has shared information with DOD officials and its particular armed forces and personnel that are civilian this system, and (3) DOD makes use of the system for recruitment and retention to market readiness.

GAO analyzed education loan data from Education in addition to PSLF servicer from the beginning for the system through January 2020; evaluated appropriate guidelines, papers, along with other information associated with PSLF, benefits, recruitment, retention, and readiness; and interviewed DOD and Education officials.

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