The general public provider Loan Forgiveness system is supposed to encourage visitors to enter general public solution. It forgives the federal education loan balances of qualified borrowers that have made at the very least ten years of re payments whilst in specific general general general public solution jobs. The Department of Education denied 94% of […]
The general public provider Loan Forgiveness system is supposed to encourage visitors to enter general public solution. It forgives the federal education loan balances of qualified borrowers that have made at the very least ten years of re payments whilst in specific general general 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 many candidates.) The absolute most denial that is common weren’t sufficient payments and incomplete applications.
We made 5 tips for DOD and Education to boost knowing of the program as well as its 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.
Exactly Just What GAO Found
Personnel when you look at 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 static in public service employment 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 per cent) had been denied (see figure). The most typical reasons behind the denials weren’t enough qualifying re payments and lacking information about the proper execution. GAO formerly reported in September 2019 a denial that is overall of 99 % for many PSLF applications submitted by borrowers. Extra information from DOD may help prospective candidates be conscious of all eligibility needs.
Wide range 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, such as the armed forces solutions.
As the administrator, Education has specialized understanding of the PSLF program but has not yet shared information that is complete DOD. Education officials never have provided with DOD summary information on its workers who possess taken actions to follow PSLF or solution people whom could be qualified. Education officials additionally claimed they will have perhaps maybe not provided some great benefits of with the PSLF system as well as DOD’s education loan payment system. Education officials also have maybe maybe not updated the learning education loan guide for solution users with particular info on PSLF. Education could simply take steps that are additional enhance information sharing about PSLF with DOD workers. DOD officials expressed desire for getting more system information. Collaboration on the list of divisions and updated program information may help DOD officials and its own workers to just 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 a few specialty profession industries. Some DOD officials we interviewed reported they preferred to utilize 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 how a PSLF system might be utilized as an instrument for such efforts.
Why GAO Did This Study
At a right time whenever education loan debt continues to install for several, 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 army readiness. GAO’s report assesses the level to which (1) DOD workers 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 the program, and (3) DOD makes use of the system for recruitment and retention to market readiness.
GAO analyzed student loan information from Education in addition to PSLF servicer right from the start for the system through January 2020; evaluated appropriate guidelines, papers, along with other information pertaining to PSLF, advantages, recruitment, retention, and readiness; and interviewed DOD and Education Louisiana title loan settlement officials.
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