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Washington, DC - U.S. Office of Personnel Management (OPM) Director Linda M. Springer today lauded the results of a report showing an increase in student loan repayments by agencies for employees of the Federal Government.
“This report clearly demonstrates agencies are utilizing this important program in an effort to recruit and retain highly qualified individuals,” said Springer. “The Federal Government greatly benefits from student loan repayment programs. It has been an effective way to attract younger workers and help offset the projected retirement wave.”
Results found a total of 33 Federal Agencies provided 6,619 employees with student loan repayment benefits during FY 2007, a 15 percent increase over the previous year.
Under the student loan repayment program agencies can make payments of up to $10,000 for an employee in any calendar year, with a maximum of $60,000 for any one employee. In return, the employee must sign an agreement to remain in the service of the paying agency for a period of at least 3 years. The average loan repayment benefit was $6,377.
Up to 60% of the Federal workforce will be eligible for retirement over the next ten years.
OPM encourages the use of programs such as student loan repayment to help offset this wave by attracting new talent to the Federal Government.
The full report is available on the OPM Website at http://www.opm.gov/oca/pay/studentloan.
Our mission is to Recruit, Retain and Honor a World-Class Workforce to Serve the American People. OPM supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.