Student Loan Repayment Program For Federal Employees Summary Under A Law Enacted In 1990 (P.L. 101-510) And Amended In 2000 (P.L. 106-398), Federal Agencies May Repay …

Summary

Under a law enacted in 1990 (P.L. 101-510) and amended in 2000 (P.L. 106-398), federal agencies may repay portions of the student loans of General Schedule (GS) and non-GS (including Foreign Service) employees they seek to recruit and retain. Eligible employees, in professional, technical, administrative, or other positions, must sign at least a three-year service agreement to remain with their agencies. In return, these employees may receive loan repayments of up to $6,000 per year and $40,000 in total from an agency. Various student loans specified in law and authorized by the Higher Education Act of 1965 and the Public Health Service Act may be repaid. Agencies may use the repayment authority to recruit graduates, many of whom carry significant amounts of debt, in order to help meet agency workforce requirements. A factor in the establishment of this program has been the prospect of substantial retirements in the federal workforce over the next five years. The Office of Personnel Management (OPM) published final regulations to implement the original law on January 11, 2001, and final regulations to implement the amendments to the law on July 31, 2001. Executive branch agencies are at different stages in considering and implementing student loan repayment programs.

In the legislative branch, the General Accounting Office, the Government Printing Office (GPO), and the Library of Congress also have authority under P.L. 101-510 and P.L. 106-398 to establish student loan repayment programs. Enacted in the 107th Congress, P.L. 107-68 authorized the Senate and the Congressional Budget Office to institute student loan repayment programs, and P.L. 107-117 authorized the Capitol Police to establish a repayment program. To date, the Senate and the GPO have implemented repayment programs. The House of Representatives has legislation pending (H.R. 2555) to extend the student loan repayment benefit to the entire legislative branch.

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