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 the least ten years of re re re payments while in specific public solution jobs.
The Department of Education denied 94% of program applicants through the Department of Defense. (We formerly discovered a 99% denial price for several candidates.) The essential typical denial reasons weren’t enough payments and incomplete applications.
We made 5 tips for DOD and Education to improve knowing of the system and its particular needs by sharing information and collaborating with one another.
Few Department of Defense candidates were authorized when it comes to Public provider Loan Forgiveness system.
What GAO Found
Personnel within 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 a decade while making 120 qualifying loan payments, among other demands. At the time of 2020, Department of Education (Education) data show that 287 DOD borrowers received loan forgiveness, while 5,180 DOD borrowers (about 94 percent) were denied (see figure) january. The most frequent good reasons for the denials are not 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 details from DOD may help prospective candidates be 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 employees within DOD, like the army solutions.
As the administrator, Education has specialized understanding of the PSLF program but have not provided complete information with DOD. Education officials have never provided with DOD summary information on its personnel that have taken actions to follow PSLF or solution users whom are qualified. Education officials additionally reported they will have maybe perhaps not provided the many benefits of utilising the PSLF system along with DOD’s education loan payment program. Education officials also have perhaps perhaps not updated the learning education loan guide for service people with particular info on PSLF. Education might take steps that are additional enhance information sharing about PSLF with DOD workers. DOD officials expressed curiosity about acquiring more system information. Collaboration on the list of divisions and updated system information may help DOD officials and its own workers to simply simply take complete advantageous asset 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 job industries. Some DOD officials we interviewed reported they preferred to make use of other DOD advantages and incentives that DOD straight settings, such as for example 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 program might be utilized as an instrument for such efforts.
Why GAO Did This Study
At time whenever education loan financial obligation will continue online installment MN to install for several, the PSLF program—established in 2007 and administered by Education—is meant to encourage people to pursue jobs in public areas service.
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 personnel pursue and get loan forgiveness through the PSLF program, (2) Education has shared information with DOD officials and its particular armed forces and personnel that are civilian this system, and (3) DOD uses the system for recruitment and retention to market readiness.
GAO analyzed education loan information from Education in addition to PSLF servicer right from the start associated with the system through January 2020; evaluated appropriate guidelines, documents, along with other information pertaining to PSLF, benefits, recruitment, retention, and readiness; and interviewed DOD and Education officials.