TOPICS
TOPICS
House votes to include feds in student loan repayment program
The House passed a bill Thursday that includes language making certain federal employees eligible to receive up to $5,000 each in student loan repayments from a fund set aside for that purpose.
Rep. Jon Porter, R-Nev., introduced the measure as an amendment to the Higher Education Act (H.R. 609), which updates student loan policy nationwide. If passed by the Senate and signed into law, the bill would qualify public servants at the local, state and federal levels for an Education Department fund that helps workers in some professions, including teachers, nurses and first responders, repay student loans.
As it stands, federal agencies are authorized to repay student loans up to $10,000 a year, with a total cap of $60,000. But money for loan repayments has to be found within an agency's budget; this measure would provide an alternate source of funding. The bill provides loan forgiveness up to $5,000 for employees who complete an undergraduate or advanced degree and work in the civil service for five consecutive years.
"Many students graduate from college and professional schools with overwhelming debt, which prevents them from pursuing jobs with government agencies or legal services programs," Porter said. "By expanding loan forgiveness, we'll encourage more highly trained young men and women to enter and continue in areas of public service."
Rep. Tom Davis, R-Va, chairman of the House Government Reform Committee, expressed his support for Porter's bill on the House floor Wednesday.
"We have to take proactive steps to ensure the best and the brightest will be attracted to public sector employment," Davis said. "These are talented, well-educated people with a strong sense of duty. We likely will never be able to compete on a dollar-for-dollar basis with the private sector, but we do have to take steps to make government service a viable option."
Twice, Davis has introduced a bill that would render student loan repayments for federal employees tax-free. That bill, called Generating Opportunity by Forgiving Educational Debt for Service (GOFEDS), has yet to find legs.
Agencies have struggled with implementing the student loan repayments. The Government Accountability Office said 2,945 federal employees received repayments in fiscal 2004 at a cost of $16.4 million.
The Office of Personnel Management initiated an interagency forum last summer for student loan repayment administrators to share best practices and increase use of the program. At an August session, participants said funding was a roadblock to using the repayment authority.
The State Department, which uses student loan repayments to entice prospective employees to historically difficult posts in places such as Baghdad and Kabul, among other jobs, was held up at the forum as a success.
Justice Department program administrator Deana Willis attributed at least part of State's accomplishments to funding. Taylor said the department has separate funding devoted each year to student loan repayments, whereas Justice has to pull money for the program from other areas.
Porter's amendment was co-authored by Reps. Rick Renzi, R-Ariz. and Robert Andrews, D-N.J. The entire bill passed by a vote of 221 to 199.
COMMENTS
- I heard about the student loan forgiveness program for teachers and was excited to know that I could help paying back my student loans. I then find out that Im not eligible although Ive been teaching special education for 6 years because I started school in 1997 and the loans have to be from after October 1998. It's rediciulous that this date is an eligibitlity requirement because many teachers I graduated with have student loans that they're stuggling to pay back due to low salary. Rachael Posted September 7, 2008 7:30 PM
- It’s another example of the haves in the government getting a benefit at the expense of the have-nots in the government and the taxpayers. As a "veteran" of a DoD agency I worked for many years, I observed many goodies allegedly aimed at giving the "disadvantaged" a leg up, including upward mobility programs, hiring of "superior student," reclassifying people that don't have a bachelor's degrees engineers because they had the qualifying experience (subjectively evaluated). And now paying for select students’ educational loans. As a result, the agencies have many people that are in jobs that don't exist in the real world and are overpaid for what they actually do. This perpetuates the machine of political patronage. Most of these programs are just for the haves, of which many can't (or won't) stand on their own feet. The ones that preferred to be self-sufficient and work for what they wanted (and not kiss up to the managers) either didn't hear about these programs, the program didn't "apply" to their situation, or they had to fight for (and be ultimately denied) the benefits of a program that they were legally entitled to. That's why I am an ex-civil servant. Dis-Gruntled GovExec.com reader Posted May 18, 2006 8:29 AM
- I've been employed as a registered nurse for the past two years at a Children's hospital. Both my parents and myself tried to pay off my education as I went through school, but with the rising costs of college, I still have an overwhelming debt to pay off. My interest alone is $10,000 on just one loan, and I have two. I love my job. I love to serve children every day part time in the hospital and in an elementary school setting. I do believe that a nurses and teachers make a difference in children's lives, and sometimes it goes unnoticed. I'm not trying to speak for anyone else or get pity from anyone, but the public should know that in a school system, you see teachers and nurses with a lot of heart and love for what they do, and the burn out comes quickly. This is my first year at an elementary school, and talking with another nurse, she loves it too but finds it hard to live on the salary and pay off her school loans without needed the extra pay you can receive in the hospital. I know my debt is large for an education that will benefit others for as long as I work, and it’s hard. I think every little bit helps when there's someone nice enough out there to grant nurses/teachers some relief in loan payments. I know for others who have paid off their loans it may not seem fair; I wish I was in your place everyday. I know that I'm a hard worker and will pay it off someday, but I also want a home, a family, and I want to save so my kids can go to college. But with my salary and debt, my future to have that only depends on another income. So, any kind of help would benefit not only me, but for so many hard working teachers, nurses, and other service workers! Melanie Posted May 4, 2006 3:05 PM
