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Any employee (as defined in 5 U.S.C. 2105) who is highly qualified is eligible to receive a student loan repayment, except those employees who currently occupy or will occupy a position excepted from the competitive service because of its confidential, policy-determining, policy-making, or policy-advocating character (e.g., employees serving under Schedule C appointments). Under 5 CFR 537.104, agencies may offer student loan repayment benefits to recruit a highly qualified job candidate or retain a highly qualified employee who, during the service period established under a service agreement, will be serving under (1) an appointment other than a time-limited appointment or (2) a time-limited appointment if-
- The employee (or job candidate) will have at least 3 years remaining under the appointment after the beginning of the service period; or
- The time-limited appointment authority leads to conversion to another appointment of sufficient duration so that his or her employment with the agency is projected to last for at least 3 additional years after the beginning of the service period.
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A student loan is eligible if it is made, insured, or guaranteed under parts B, D, or E of title IV of the Higher Education Act of 1965 or is a health education assistance loan made or insured under part A of title VII or part E of title VIII of the Public Health Service Act.
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Under 5 CFR 537.103, each agency must establish a plan that designates the officials who are authorized to review and approve offers of student loan repayment benefits. Agencies may use approval delegations similar to those used for other recruitment, relocation, and retention incentives.
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The types of academic degrees and/or levels covered by the program are not specified in law. Agencies are encouraged to tailor their plans to recruit highly qualified candidates and/or retain highly qualified employees in their current positions. Therefore, an agency may specify the types of degrees and levels necessary to attain this goal.
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Agencies should specify the beginning date of the service requirement in the job candidate’s or employee’s service agreement. The service requirement begins at the time specified in the service agreement, but may begin no earlier than the date the service agreement is signed or earlier than the date the individual begins serving in the position for which he or she was recruited (when student loan repayment benefits are approved to recruit a job candidate to fill an agency position).
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No. An agency has discretionary authority to repay certain types of Federally made, insured, or guaranteed student loans as a recruitment or retention incentive for highly qualified candidates or current employees.
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Yes. All “highly qualified” personnel, regardless of job series, including Senior Executive Service members, Federal Wage System employees, and employees covered by administratively determined pay systems, are eligible unless specifically excluded by law or regulation.
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The statute authorizing this program states that this incentive is to be used for employees of a given agency who have outstanding student loans. Thus, if the employee has a PLUS loan for his or her child, the loan would qualify for repayment. However, if a PLUS loan is held by an employee’s parent, the employee is not eligible for loan repayment benefits for the parent’s PLUS loan. While a PLUS loan an employee has previously taken out to help pay for his or her child's education is a qualifying student loan under 5 U.S.C. 5379(a)(1)(B) and 5 CFR 537.102, an agency may specify in its agency loan repayment plan that it will not offer to repay PLUS loans under its student loan repayment program.
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