The Federal Student Loan Repayment Program is designed to aid in the recruitment and retention of qualified candidates and current employees by allowing agencies to repay Federally insured student loans. This program is authorized under 5 U.S.C. 5379, which empowers agencies to create their own student loan repayment initiatives to attract or retain highly qualified employees.
Employee Coverage
The program is available to any employee as defined under 5 U.S.C. 2105, excluding those in positions that are excepted from competitive civil service due to their confidential, policy-determining, policy-making, or policy-advocating nature, such as Schedule C appointees.
Eligible Loans
Loans that qualify for repayment are those made, insured, or guaranteed under parts B, D, or E of Title IV of the Higher Education Act of 1965. Additionally, health education assistance loans made or insured under Part A of Title VII or Part E of Title VIII of the Public Health Service Act are eligible. For specific examples, refer to the program’s Q&A section.
Limitations
The program does not offer loan forgiveness but allows agencies to pay up to $10,000 per calendar year towards an employee’s loan, with a lifetime cap of $60,000 per employee.
Discretionary Authority
Participation in this program is at the discretion of each agency. Agencies must develop a plan outlining the implementation of the program. Consequently, not all agencies may participate or offer this benefit to all new hires or current employees. However, numerous other incentives, compensation, leave, and benefit programs are available to Federal employees. More information can be found on the Federal Employee Compensation Package webpage.
Service Agreement
Employees receiving benefits under this program must sign a service agreement to remain with the paying agency for at least three years. If an employee voluntarily separates or is involuntarily separated due to misconduct, unacceptable performance, or a negative suitability determination under 5 CFR part 731, they must reimburse the agency for all benefits received. Continued receipt of repayment benefits is contingent upon maintaining an acceptable level of performance.
Periods in Non-Pay Status
Any periods of leave without pay or other non-pay status do not count towards the completion of the required service period. The service completion date will be extended by the total amount of time spent in non-pay status. However, time spent in uniformed service or due to compensable injury is considered creditable towards the required service period upon reemployment, as per 5 CFR 353.107.
Repayment Reports
Agencies must report annually to the U.S. Office of Personnel Management (OPM) on their use of the student loan repayment authority by March 31 for the previous calendar year. These reports must include:
- The number of employees who received student loan repayment benefits.
- The job classifications of these employees.
- The cost to the Federal Government for providing these benefits.
Refer to the SLRP Reports Tab for links to these reports.
References
- 5 U.S.C. 5379
- 5 CFR part 537
- 5 U.S.C. 2105
Additional Notes
The Federal Student Loan Repayment (SLR) program is regulated by OPM at 5 CFR part 537 and should not be confused with the U.S. Department of Education’s Public Service Loan Forgiveness (PSLF) program. While both programs assist in recruitment and retention of Federal employees, they are distinct in their criteria, benefits, statutory authorities, and administration. Federal employees interested in PSLF should consult their Human Resources office for assistance.
For further details and to explore other incentives and benefits, visit the Federal Employee Compensation Package webpage.
