The general public provider Loan Forgiveness system is supposed to encourage individuals to enter general public solution. It forgives the federal education loan balances of qualified borrowers that have made at the least ten years of re re payments whilst in specific general general general public solution jobs.
The Department of Education denied 94% of system applicants 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 tips for DOD and Education to boost understanding of the program and its particular needs by sharing information and collaborating with one another.
Few Department of Defense candidates had been authorized for the Public provider Loan Forgiveness system.
Just What GAO Found
Personnel into the Department of Defense (DOD service that is)—including 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 a decade 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 frequent grounds 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 % for many PSLF applications submitted by borrowers. More info 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 services that are military.
As the administrator, Education has specialized understanding of the PSLF program but hasn’t provided complete information with DOD. Education officials haven’t shared with DOD summary information regarding its workers that have taken actions to pursue PSLF or solution people whom might be qualified. Education officials additionally reported they will have perhaps perhaps maybe not shared the many benefits of utilising the PSLF system as well as DOD’s education loan payment system. Education officials also have perhaps maybe maybe not updated the education loan guide for solution people 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 acquiring more system information. Collaboration one of the departments and updated program information may help DOD officials and its particular personnel to 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 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 payment system. DOD could enhance its recruitment and retention efforts to advertise readiness with department-wide and service-specific guidance about how a PSLF system could possibly be utilized as an instrument for such efforts.
Why GAO Did This Study
At a right time whenever education loan financial obligation continues to install for all, the PSLF program—established in 2007 and administered by Education—is designed 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 army readiness. GAO’s report assesses the degree to which (1) DOD workers pursue and get loan forgiveness through the PSLF system, (2) Education has shared information with DOD officials and its own armed forces and civilian workers about this program, and (3) DOD makes use of the system for recruitment and retention to advertise readiness.
GAO analyzed education loan information from Education together with PSLF servicer right from the start associated with system through January 2020; evaluated relevant legislation, papers, along with other information associated with PSLF, benefits, recruitment, retention, and readiness; and interviewed DOD and Education officials.
