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FEDERAL STUDENT LOAN
Federal Student Loan Repayment Program
The Federal student loan repayment program permits agencies to repay Federal loans. The Federal student loan program authorizes agencies to set up their own repayment programs to attract or retain highly qualified employees to get a Federal student loan. If you have more loans and want to bring it all together to one loan, you can take a federal student loan consolidation.
Employee Coverage
Any employee is eligible for a Federal student loan, except those occupying a position excepted from the competitive civil service cannot get a Federal student loan because of their confidential, policy-determining, policy-making, or policy-advocating nature.
Eligible for Payment
Federal loans eligible for payment are those made, insured, or guaranteed under some parts of the Higher Education Act of 1965.
Limitations
Although the Federal loan is not direct forgiven, agencies may make payments to the Federal loan holder of up to a maximum of $10,000 for an employee in a calendar year and a total of not more than $60,000 for any one employee.
Discretionary Authority of the Federal student loan
Each agency must develop a plan to describe how the Federal student loan program will be implemented.
Service Agreement
An employee receiving this Federal loan 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 of the Federal student loan for all benefits received if he or she is separated voluntarily or separated involuntarily for cause or poor performance. In addition, an employee must maintain an acceptable level of performance in order to continue to receive repayment benefits of the Federal student loan.
Annual Reporting of the Federal student loan
Agencies are required to report annually to the Office of Personnel Management (OPM) on the use of the Federal loan repayment authority.
OPM will include this information in its annual report to Congress on agencies’ use of the Federal loan repayment program.
Student Loan Consolidation
College Funding Made Simple Federal Student Loan Consolidation.
www.nextstudent.com
Student Loan Repayment
Federal Student Loan Repayment Program.
www.opm.gov
 Students.net Homepage  Back to Student Loan
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