Agencies triple student loan repayments
Reimbursements to employees under three-year-old benefit program totaled $9.1 million in fiscal 2003.
Federal agencies spent three times as much in fiscal 2003 repaying student loans of their employees as they did the year before, the Office of Personnel Management reported Friday.
The State Department had the highest level of student loan repayments, spending $3.2 million to reimburse 660 workers for school loans. The Securities and Exchange Commission was second, issuing $1.4 million in repayments to 257 employees. In third was the Defense Department, with $1.3 million spent for 469 employees.
"I am pleased that agencies are utilizing the Student Loan Repayment Program more than they have in the past," OPM Director Kay Coles James said. She added, however, that work remained to be done to expand the program across the federal government.
According to the OPM report, agencies used the program for 2,077 federal employees in fiscal 2003-three times as many as in fiscal 2002. Agencies spent $9.1 million to repay loans, up from $3.1 million the year before.
The report said that 24 agencies-including the Energy and Health and Human Services departments-used the repayment program. In fiscal 2002, only 16 agencies had taken part. Another six agencies have established systems to use the repayment option, and two agencies are in the process of developing such plans.
"Some agencies have demonstrated excellent results and have an established track record," James said. "Other agencies, including OPM itself, have repositioned their operations to make better use of repayments in the coming year, consistent with updated human capital plans, mission critical needs and revamped hiring processes."
The benefit was launched in fiscal 2001 to help the recruiting efforts of agencies by allowing them to pay off employees' existing student loans. In exchange, the employees must commit to work at their agencies for at least three years. They must also pay taxes on the repayment assistance.
In April, OPM raised the amount that agencies are allowed to put toward student loan repayments from $6,000 per employee per year and a total of $40,000 to $10,000 per year and $60,000 total.