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 individuals to enter general public solution. It forgives the federal education loan balances of qualified borrowers who’ve made at the very least decade of re re re payments whilst in specific 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 many candidates.) The essential typical denial reasons are not enough payments and incomplete applications.

We made 5 strategies 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.

Just What GAO Found

Personnel when you look at the Department of Defense (DOD)—including solution people 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 general public solution work for a decade while making 120 qualifying loan re re 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 reasons behind the denials are not enough qualifying re re payments and lacking home elevators the proper execution. GAO previously reported in September 2019 a denial that is overall of 99 % for many PSLF applications submitted by borrowers. More info from DOD may help prospective candidates be 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 31, 2020 january

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 has not yet provided information that is complete DOD. Education officials never have provided with DOD summary information regarding its workers that have taken actions to follow PSLF or solution people whom could be eligible. Education officials additionally reported they’ve maybe maybe not provided some great benefits of making use of the PSLF system along with DOD’s education loan payment program. Education officials also have maybe perhaps not updated the education loan guide for solution users with specific all about PSLF. Education could just take steps that are additional enhance information sharing about PSLF with DOD workers. DOD officials expressed fascination with acquiring more system information. Collaboration among the list of divisions and updated system information may help DOD officials as well as its workers to simply simply take advantage that is full of.

DOD will not commonly make use of the PSLF program for recruitment and retention to market readiness despite dealing with challenges in a few 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 loan payment system. DOD could enhance its recruitment and retention efforts to advertise readiness with department-wide and service-specific guidance about how a PSLF system could possibly be utilized as an instrument for such efforts.

Why GAO Did This Research

At 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 jobs in public areas service.

Senate Report 116-48 included a supply for GAO to examine the potency of the PSLF system at advertising armed forces and recruitment that is civilian retention also 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 as well as its armed forces and civilian workers about this system, and (3) DOD utilizes the system for recruitment and retention to market readiness.

GAO analyzed education loan data from Education and also the PSLF servicer right from the start regarding the system through January 2020; reviewed laws that are relevant documents, as well as other information associated with PSLF, advantages, recruitment, retention, and readiness; and interviewed DOD and Education officials.

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