Government Paid off $62 Million in Student Loans for Federal Employees

Monday, August 23, 2010

Wouldn’t it be nice if your employer paid your student loans for you? That’s what the federal government has been doing the past eight years for a select group of government employees.

A report from the Office of Personnel Management shows 36 agencies helped out more than 8,400 workers last year, paying $61.8 million in student loan bills. Most of those receiving this assistance were lawyers, criminal investigators, administrative personnel, intelligence analysts and contract specialists.
The Department of Justice allocated the most money ($19.3 million), followed by the Department of Defense ($14.1 million), State Department ($7.2 million), the Securities and Exchange Commission ($3.2 million) and the Government Accountability Office ($2.8 million).
Begun in 2002, the federal government’s loan repayment program was established to help agencies compete with the private sector for new workers. The maximum an agency can repay annually is $10,000, with a cap of $60,000 per employee. Workers enrolling in the program must sign an agreement to remain at their job for at least three years.
-Noel Brinkerhoff
Gov't Repaying More Student Loans for Employees (by Ed O’Keefe, Washington Post)


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