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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 general public provider Loan Forgiveness system is supposed to encourage visitors to enter general public solution. It forgives the student that is federal balances of qualified borrowers that have made at the very least a decade of re re re payments whilst in https://yourloansllc.com/title-loans-ar/ particular 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 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 system and its own needs by sharing information and collaborating with one another.

Few Department of Defense candidates had been authorized for the Public Service Loan Forgiveness system.

Exactly Just What GAO Found

Personnel within the Department of Defense (DOD)—including solution people and civilian employees—may qualify for federal student loan forgiveness through the general public Service Loan Forgiveness (PSLF) system when they stay static in general public solution work for ten years while making 120 qualifying loan re re payments, among other needs. 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 percent) had been denied (see figure). The most frequent known reasons 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. More details 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 army solutions.

As the administrator, Education has specialized understanding of the PSLF program but have not provided complete information with DOD. Education officials never have provided with DOD summary details about its workers who possess taken actions to follow PSLF or solution users whom could be qualified. Education officials additionally reported they will have maybe maybe maybe not provided the many benefits of utilising the PSLF system along with DOD’s education loan repayment program. Education officials also have perhaps not updated the education loan guide for solution people with particular info on PSLF. Education might take steps that are additional 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 simply just just take advantage that is full of.

DOD doesn’t commonly utilize the PSLF program for recruitment and retention to advertise readiness despite dealing with challenges in a few specialty job areas. 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 advertise readiness with department-wide and guidance that is service-specific the way the PSLF system could possibly be utilized as an instrument for such efforts.

Why GAO Did This Study

At time when education loan financial obligation 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 analyze the potency of the PSLF system at advertising military and recruitment that is civilian retention in addition to army 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 and its own army and civilian workers about this system, and (3) DOD utilizes the system for recruitment and retention to advertise readiness.

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

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