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Public Provider Loan Forgiveness: DOD as well as its Personnel Could Take Advantage Of Additional System Information

Public Provider Loan Forgiveness: DOD as well as its Personnel Could Take Advantage Of Additional System Information

The Public provider Loan Forgiveness system is supposed to encourage individuals to enter public solution. It forgives the student that is federal balances of qualified borrowers who possess made at the least ten years of re re payments whilst in particular 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 candidates.) The absolute most denial that is common weren’t sufficient payments and incomplete applications.

We made 5 suggestions for DOD and Education to boost understanding of the scheduled system and its particular needs by sharing information and collaborating with one another.

Few Department of Defense applicants had been authorized when it comes to Public provider Loan Forgiveness system.

Exactly Exactly What GAO Found

Personnel into 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 static in general general public solution work for a decade while making 120 qualifying loan re 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 typical grounds for the denials are not enough qualifying re payments and information that is missing the proper execution. GAO formerly reported in September 2019 a general denial price of 99 % for several PSLF applications submitted by borrowers. Extra information 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 31, 2020 january

Note: The “Civilian” categories consist of all civilian workers within DOD, like the armed forces solutions.

As the administrator, Education has specialized information about the PSLF program but have not provided information that is complete DOD. Education officials never have provided with DOD summary information on its workers who possess taken actions to pursue PSLF or solution users whom could be qualified. Education officials additionally reported they will have perhaps not provided the many benefits of utilising the PSLF system along with DOD’s education loan payment system. Education officials also have maybe perhaps maybe not updated the education loan guide for solution members with certain all about PSLF. Education could simply take extra actions to enhance information sharing about PSLF with DOD workers. DOD officials expressed desire for getting more system information. Collaboration among the list of divisions and updated system information may help DOD officials as well as its workers to just take complete benefit of PSLF.

DOD will not commonly utilize the PSLF program for recruitment and retention to advertise readiness despite dealing with challenges in some specialty profession 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 example bonuses or DOD’s education loan repayment system. DOD could enhance its recruitment and retention efforts to advertise readiness with department-wide and guidance that is service-specific the way the PSLF system might 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 designed to encourage people to pursue jobs in public areas service.

Senate Report 116-48 included a provision for GAO to examine the potency of the PSLF system at advertising armed forces 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 system, (2) Education has shared information with DOD officials as well as its army and personnel that are civilian this program, and (3) DOD makes use of the system for recruitment and retention to advertise readiness.

GAO analyzed education loan information from Education plus the PSLF servicer right from the start associated with the system through January 2020; evaluated laws that are relevant papers, as well as other information pertaining to PSLF, benefits, recruitment, retention, and readiness; and interviewed DOD and Education officials.

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