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Public Provider Loan Forgiveness: DOD and its own Personnel Could Take Advantage Of Additional System Information

Public Provider Loan Forgiveness: DOD and its own Personnel Could Take Advantage Of Additional System Information

The general public provider Loan Forgiveness system is supposed to encourage individuals to enter service that is public. It forgives the student that is federal balances of eligible borrowers who’ve made at the very least a decade of 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.) Probably the most denial that is common are not sufficient payments and incomplete applications.

We made 5 strategies for DOD and Education to improve understanding of the scheduled program as well as its needs by sharing information and collaborating with one another.

Few Department of Defense candidates had been approved for the Public provider Loan Forgiveness system.

Just Just Just 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 public solution work for a decade while making 120 qualifying loan re payments, among other demands. 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 %) had been denied (see figure). The most frequent good reasons for the denials are not enough qualifying re re payments and information that is missing the shape. GAO formerly reported in September 2019 a denial that is overall of 99 per cent for several PSLF applications submitted by borrowers. Additional information from DOD may help applicants that are potential 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 January 31, 2020

Note: The “Civilian” groups consist of all civilian workers within DOD, like the army solutions.

As the administrator, Education has specialized understanding of the PSLF program but has not yet provided complete information with DOD. Education officials never have provided with DOD summary information on its workers that have taken actions to follow PSLF or solution people whom might be qualified. Education officials additionally reported they’ve maybe maybe not provided some great benefits of utilising the PSLF system as well as DOD’s education loan payment system. Education officials also have perhaps perhaps not updated the education loan guide for solution users with particular informative data on PSLF. Education could just take steps that are additional improve information sharing about PSLF with DOD workers. DOD officials expressed curiosity about acquiring more program information. Collaboration one of the departments and updated system information may help DOD officials and its own workers to simply simply just 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 areas Tennessee auto title loans. Some DOD officials we interviewed stated they preferred to utilize 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 market readiness with department-wide and service-specific guidance about how a PSLF system could possibly be used as something for such efforts.

Why GAO Did This Research

At time whenever education loan financial obligation will continue to install for several, the PSLF program—established in 2007 and administered by Education—is designed to encourage people to pursue professions in public areas service.

Senate Report 116-48 included a supply for GAO to review the effectiveness of the PSLF program at advertising armed forces and recruitment that is civilian retention along with military 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 particular armed forces and personnel that are civilian this program, and (3) DOD utilizes the system for recruitment and retention to market readiness.

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

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