Public Provider Loan Forgiveness: DOD as well as its Personnel Could Take Advantage Of Additional System Information
The general public provider Loan Forgiveness system is supposed to encourage visitors to enter service that is public. It forgives the student that is federal balances of qualified borrowers that have made at least ten years of re payments whilst in specific general public solution jobs.
The Department of Education denied 94% of system candidates through the Department of Defense. (We formerly discovered a 99% denial price for several applicants.) 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 and its own needs by sharing information and collaborating with one another.
Few Department of Defense candidates had been authorized for the Public provider Loan Forgiveness program.
Exactly Just 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 in general general public solution work for decade which makes 120 qualifying loan 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 per cent) had been denied (see figure). The most frequent known reasons for the denials weren’t enough qualifying re re payments and lacking informative data on the shape. GAO formerly reported in September 2019 a denial that is overall of 99 % for several PSLF applications submitted by borrowers. More info from DOD may help applicants that are potential conscious of all eligibility demands.
Amount 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 include all civilian workers within DOD, such as the army solutions.
As the administrator, Education has specialized information about the PSLF program but has not yet provided complete information with DOD. Education officials never have provided with DOD summary details about its workers that have taken steps to follow PSLF or solution people whom might be qualified. Education officials additionally reported they will have not provided the many benefits of making use of the PSLF system along with DOD’s education loan repayment system. Education officials have perhaps maybe not updated the education loan guide for solution people with particular all about PSLF. Education could simply take additional actions to enhance information sharing about PSLF with DOD workers. DOD officials expressed desire for acquiring more system information. Collaboration on the list of divisions and updated system information may help DOD officials as well as its workers to just just take advantage that is full of.
DOD will not commonly make use of the PSLF program for recruitment and retention to advertise readiness despite facing challenges in a few specialty job areas. Some DOD officials we interviewed reported that 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 market readiness with department-wide and service-specific guidance about the way the PSLF system could possibly be utilized as an instrument for such efforts.
Why GAO Did This Research
At a right time when education loan financial obligation continues to install for most, the PSLF program—established in 2007 and administered by Education—is meant to encourage people to pursue jobs in public places solution.
Senate Report 116-48 included a supply for GAO to review the potency of the PSLF system at advertising army and recruitment that is civilian retention along with armed forces 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 own armed forces and civilian workers about this system, and (3) DOD makes use of the system for recruitment and retention to advertise readiness.
GAO analyzed education loan information from Education in addition to PSLF servicer right from the start associated with system through January 2020; evaluated appropriate guidelines, papers, as well as other information associated with PSLF, advantages, recruitment, retention, and readiness; and interviewed DOD and Education officials.