The Federal student loan repayment program permits agencies to repay Federally insured student loans as a recruitment or retention incentive for candidates or current employees of the agency. The program implements 5 U.
Any employee as defined in 5 U. As with any incentive, this authority is used at the discretion of the agency. Each agency must develop a plan to describe how the program will be implemented. An employee receiving this benefit must sign a service agreement to remain in the service of the paying agency for a period of at least 3 years. An employee must reimburse the paying agency for all benefits received if he or she is separated voluntarily or separated involuntarily for misconduct, unacceptable performance, or a negative suitability determination under 5 CFR part In addition, an employee must maintain an acceptable level of performance in order to continue to receive repayment benefits.
Periods of leave without pay, or other periods during which the employee is not in a pay status, do not count toward completion of the required service period. The service completion date must be extended by the total amount of time spent in non-pay status.
However, as provided by 5 CFR Agencies are required to report annually to the U. Before March 31 of each year, agencies must submit their reports for the previous calendar year. The reports must contain. is a summary of the best practices and lessons learned by agencies that Pay plan gg nsa hookups successfully implemented student loan repayment programs. This information is intended to assist agencies in establishing and administering a student loan repayment program.
The repayment authority, 5 U. These are Federally insured loans made by educational institutions or banks and other private lenders. The Higher Education Act covers guaranteed student loan programs such as: Loans covered under the Public Health Service Act include the: The following options are intended to provide assistance in making determinations of eligibility that satisfy the requirement for fair and equitable treatment in the selection of repayment candidates.
The spirit and intent of this requirement may be satisfied by directing recruitment information and activities toward events and locations that are most to produce candidates in the employment group s needed by the respective [AGENCY COMPONENT], even though the results of all recruitment efforts produce highly qualified candidates other than in the targeted employment group s.
They are intended to provide consistency in approach toward loan repayments. Set the minimum period of service at 3 years for all candidates and then determine the loan payment period. The loan payment period is the same as the period of service, which is determined by dividing the annual school cost into the loan balance. The loan payment period is determined by dividing the maximum annual payment into the loan balance; the period of service is determined by multiplying the loan payment period by 3.
The loan payment period is determined by dividing the outstanding balance by the number of years to attain the degree; the period of service is determined by multiplying the loan payment period by 3.
For this option, the amount of the loan payment is added to the gross salary amount to increase the total salary for that pay period; taxes are calculated and withheld based on the total salary to determine the employee's net pay.
The total payment amounts may vary from year to year because each calendar year does not always have 26 pay periods; the total amount will probably be less the first calendar year Pay plan gg nsa hookups is dependent on the employee's entry Pay plan gg nsa hookups duty date.
Thus, the biweekly amount may need to be adjusted each year so that the maximum allowable per calendar year is not exceeded. Payments will automatically stop when the total authorized amount has been paid each year. This process should be similar to recertifications of retention allowances, in which the servicing human resources staff "suspenses" the effective date of the service agreement and follows up with the appropriate management official; the management official provides a statement that funds are still available for the entire calendar year and that each loan has been reviewed to ascertain whether or not it is in arrears or default.
If the amount of the allotment s will not change, then a statement to that effect must be provided to the payroll office. If the amount of the loan repayment s will be different from the prior year, the new information must be provided. If the loan s is in arrears or default, then the management official must determine the appropriate course of action and inform the employee and the servicing human resources staff.
Employees may be able to deduct the interest on their student loans even though the interest is included in the total loan amount and paid by the agency. Employees should review Chapter 3 of the Internal Revenue Service Publicationwhich is available at www. This instruction provides policy and guidance for implementing the Student Loan Repayment Program.