OPM ISSUES FINAL REGULATIONS ALLOWING FEDERAL AGENCIES TO REPAY STUDENT LOANS |
Washington, DC -- The US Office of Personnel Management (OPM) today issued final regulations authorizing federal agencies to repay student loans as a recruitment or retention incentive for candidates and current employees. The loan repayment program is the latest in a series of recruitment and retention initiatives developed by OPM for use by Federal agencies.
"The biggest challenge of this century may be to attract and retain well-qualified, highly motivated employees," said OPM Director Janice R. Lachance. "OPM is committed to meeting this challenge using innovative and flexible new tools."
As a recruitment tool, agencies can offer student loan repayments once they have made an offer of employment. As a retention tool, loan repayments can be made to current employees as one of many incentives designed to keep talented employees in the Federal workforce. Using the authority, agencies can tailor loan repayment programs to meet specific resource needs. Agencies may repay up to $6,000 per year per individual for a maximum of $40,000.
"This new regulation gives agencies a tool similar to ones used by the private sector. We'll be more competitive, especially when we recruit on the college campus," said Director Lachance.
The final rules were published in today's Federal Register.
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Web page created 12 January 2001