UNITED STATES
Attempts by US Congressional Republicans to abolish the controversial Public Service Student Loans Forgiveness Scheme have met with opposition from an unlikely source — the US Department of Defense (DoD).
The DoD has issued a document saying it opposes the PROSPER Act — the Republicans’ plan to overhaul the Higher Education Act — because it includes a provision to eliminate the loan forgiveness program.
It said the program is a valuable recruitment and retention tool for the armed services and the US Department of Veterans Affairs when competing against private employers.
The DoD said this was especially true for specialty fields such as the Judge Advocate General Corps, which required graduate degrees.
“The absence of this program, particularly in a strong economy, makes recruitment and retention especially difficult in specialised occupations,” the DoD said.
“As the economy improves, it will become increasingly difficult for the armed services to compete with the private sector for highly educated employees.”
Spokeswoman for the DoD, Laura Seal said the Agency periodically provided informal input to Congress on proposed legislation.
“Sometimes this is done by request, and sometimes it is proactive,” Ms Seal said.
“We share these views directly with representatives or their staffs. We do not make them public.”
The Public Service Student Loans Forgiveness Scheme, which was created with bipartisan support in 2007, promises that student loan borrowers who work for employers in the public or non-profit sector and make 120 qualifying monthly payments will have the remainder of their Federal loan discharged.
The DoD argued that it potentially makes the armed forces, as well as other public employers, attractive to younger workers who might not consider that option otherwise.
The DoD document runs counter to the official position of President, Donald Trump’s Administration.
In two consecutive Budget proposals, the White House has called for the elimination of the loan forgiveness program.
Washington, DC, 27 April 2018
