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Gov't repaying more student loans for employees

By Ed O'Keefe

Here's another example of the benefits enjoyed by some federal workers: 36 federal agencies provided 8,454 federal workers with more than $61.8 million in student loan repayments in 2009, according to new statistics.

The figures represent a 20 percent increase in spending from 2008 and a 23 percent jump in the number of employees benefiting from the program. Loan repayments to federal workers averaged $7,317, the Office of Personnel Management announced Thursday. The program's beneficiaries represent a small percentage of the roughly 1.3 million civilian federal workers.

The federal government's loan repayment program started in 2002 as a recruitment and retention tool. Agencies can make repayments up to $10,000 annually, with maximum payouts of $60,000, but workers must sign an agreement to work for at least three years.

Government lawyers were the biggest beneficiaries in 2009, followed by criminal investigators, administrative personnel, intelligence analysts and contract specialists. The Justice Department paid out the most money, $19.3 million, followed by the Defense Department ($14.1 million), the State Department ($7.2 million), the Securities and Exchange Commission ($3.2 million) and the Government Accountability Office ($2.8 million). But 14 unnamed agencies told OPM that budget restraints have hampered their ability to make repayments, potentially impacting recruitment efforts.

Agencies don't necessarily use the incentive widely since it may only be used to help achieve specific recruitment goals, OPM said.

"President Barack Obama has highlighted the importance of recruitment and retention tools and has asked each Federal agency to do its part to ensure 'this Government is as efficient as possible and that every taxpayer dollar that is spent is being spent wisely,'" OPM said in a statement accompanying the statistics.

Many companies, including The Washington Post Co., use tuition reimbursement or student loan repayments as recruitment and retention incentives. But news of the government's growing use of the benefit comes as fiscal conservatives and news outlets continue to warn about a growing pay gap between the public and private sector.

OPM Director John Berry has panned those critics -- including the Cato Institute and USA Today -- for comparing "apples and oranges," arguing they use statistics that don't accurately reflect the pay gap. Critics say the data they cite better account for the government's generous benefits program, which is responsible for most of the growing gap.

Leave your thoughts in the comments section below

By Ed O'Keefe  | August 20, 2010; 9:03 AM ET
Categories:  Workplace Issues  
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Comments

THE FEDERAL GOVERNMENT IS A WONDERFUL EMPLOYER.
I AM RETIRED POSTAL WORKER WHO HAS DIGNITY AND ENOUGH INCOME NOW SO THAT I AM JUST COMFORTABLE.
MOST PRIVATE SECTOR EMPLOYEES CANNOT CLAIM THIS!

Posted by: marygribbin809 | August 20, 2010 1:36 PM | Report abuse

College tuition increases will continue as the economy continues to falter. Most people believe that a good college education will be the answer to their prayers and many institutions capitalize on this. Cost do rise as we all know, but the cost of an education seems to rise more quickly than other expenses. Every parent wants to see their child graduate college and certainly does not want to be responsible for their failure to get a degree because of money. That being said, there are other alternatives to finance college tuition in scholarships, grants and awards that should be reviewed to see what you may qualify for. One source that I found helpful is located here.

http://www.freecollegetuition.financebusinessadvice.com/

Posted by: allcollegesources | August 20, 2010 2:15 PM | Report abuse

marygribbin809---so your saying everyone s/b a Gov. employee..Ummm...let me think on that...Nah--would rather be a politician..better pay/heathcare/retirement and like you---all..ALL payed for by TAX PAYERS...and yes you pay taxes...on the money you get from the Gov. in pay which is (originally) TAX money..Ummm...

Posted by: rw62827 | August 20, 2010 2:33 PM | Report abuse

and I do remember when the postoffice made money..why it does not??? my father was in postal service..and all the waste..from above and all the way down..

Posted by: rw62827 | August 20, 2010 2:34 PM | Report abuse

Not at EPA they're not. We've begged, pleaded, and cajoled. I even sent this link to the entire office.

Come November at my grade increase, if they don't offer loan repayment I'm going to transfer to a federal agency that does.

Posted by: anarcho-liberal-tarian | August 24, 2010 10:04 AM | Report abuse

gimme gimme gimme

Posted by: jiji1 | August 24, 2010 1:24 PM | Report abuse

The comments to this entry are closed.

 
 
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