TOPICS
TOPICS
OPM raises limit on student loan reimbursements
The Office of Personnel Management announced last week that it is altering federal regulations to increase the amount of money that agencies can put toward employees' student loan repayments.
The decision increases the amount that agencies can reimburse employees for their loans by 50 percent. Previously, agencies were able to give each worker $6,000 per year and $40,000 total. They will now be able to provide $10,000 per year and $60,000 total.
Before agencies can offer repayments, they have to write plans following OPM guidelines. Last June, OPM reported that in fiscal 2002, 16 agencies provided $3.1 million in student loan repayments to 690 federal workers.
The State Department, which assisted with payments to 407 employees, and the General Accounting Office, with 169 cases, were the biggest participants. Several agencies, including the Justice Department, took part in 2002 but helped only one employee with loan repayments.
The student loan benefit was introduced in fiscal 2001 to help agencies recruit high-quality or vitally important employees by helping them pay off existing loans. In exchange, the employees are required to commit to at least three years of employment. They must also pay taxes on the repayment assistance.
OPM Director Kay Coles James moved last week to implement the adjustment quickly, finding that "good cause exists for waiving the general notice of rulemaking" and "for making this rule effective in less than 30 days."
COMMENTS
- It does not matter how much the repayment is if your agency as policy does not participate. GovExec.com reader Posted May 5, 2004 11:39 AM
- Kay Coles James, need I/we say more. I'm finding more often, and take no offense ladies, that it seems the more women are introduced in the higher ranks of service, the more things seem to be discombobulated. However I agree with the last poster, who mentioned that OPM is nothing more then a rubber stamp. OPM does not make any decisions. It just carries them out. GovExec.com reader Posted April 27, 2004 8:28 PM
- OPM is now and will always be a joke. It should be replaced with a real personnel company such as Kelly Services. At least you would have someone that new something about personnel. OPM is a joke and we have to live with it. GovExec.com reader Posted April 28, 2004 6:55 AM
Correction: The original version of this article erroneously stated that agencies could reimburse employees for future educational loans. The program only covers existing or outstanding loans. The story has been updated to correct the error.
