The general public provider Loan Forgiveness system is supposed to encourage visitors to enter service that is public. It forgives the federal education loan balances of qualified borrowers that have made at the least a decade of re re payments whilst in specific general public solution jobs.

The Department of Education denied 94% of system candidates from 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 suggestions for DOD and Education to improve understanding of the scheduled system as well as its needs by sharing information and collaborating with one another.

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

installment loans Illinois What GAO Found

Personnel into the Department of Defense (DOD)—including solution people and civilian employees—may qualify for federal education loan forgiveness through people Service Loan Forgiveness (PSLF) system when they stay in general general public solution work for ten years which makes 120 qualifying loan re re payments, among other needs. 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 known reasons for the denials are not enough qualifying re re payments and information that is missing the proper execution. GAO formerly reported in September 2019 a general denial rate of 99 % for all PSLF applications submitted by borrowers. More details from DOD may help applicants that are potential conscious of all eligibility demands.

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, like the services that are military.

As the administrator, Education has specialized understanding of the PSLF program but has not yet provided information that is complete DOD. Education officials never have shared with DOD summary information regarding its workers who possess taken actions to follow PSLF or solution people whom could be qualified. Education officials additionally reported they’ve maybe perhaps not provided the many benefits of utilising the PSLF system along with DOD’s education loan payment system. Education officials also have perhaps perhaps perhaps not updated the learning education loan guide for solution people with particular all about PSLF. Education might take steps that are additional enhance information sharing about PSLF with DOD workers. DOD officials expressed fascination with getting more system information. Collaboration on the list of departments and updated system information may help DOD officials and its own workers to just take advantage that is full of.

DOD doesn’t commonly utilize the PSLF program for recruitment and retention to market readiness despite facing challenges in some specialty profession areas. 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 market readiness with department-wide and service-specific guidance about how a PSLF program could possibly be utilized as an instrument for such efforts.

Why GAO Did This Research

At a right time whenever education loan financial obligation will continue to install for a lot of, the PSLF program—established in 2007 and administered by Education—is meant to encourage people to pursue professions in public areas solution.

Senate Report 116-48 included a supply for GAO to examine the effectiveness of the PSLF system at advertising army and recruitment that is civilian retention along with armed forces 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 makes use of the system for recruitment and retention to advertise readiness.

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