OPM said 21 of 28 agencies using the student loan
reimbursement program reported that the program improved
recruitment and retention efforts last year.
For example, one Department of Defense component attributed
its success in recruiting 335 college graduates in the
last two years in science, engineering, and IT fields, and
another DoD component reported that just five of its 173
program participants have separated, OPM said.
Agencies reported to OPM that they were able to use the
program to fill internships and openings in the
presidential management fellows program, both of which
feed into federal careers.
Several Federal Energy Regulatory Commission employees said
student loan repayment was undoubtedly a factor in their
decision to accept employment, or stay with the agency,
according to the report.
It said the Department of State has used the program as
a retention incentive for civil service employees and as
a recruitment incentive to fill danger and hardship posts
overseas–though the current geo-political climate may
have contributed to the academic focus and professional
aspirations of new recruits as well.
State reported that about 80 percent of entry-level
assignments are to overseas hardship posts and said use
of the program helped it fill them with qualified and
eager individuals — just 14 of 1,050 individuals approved
for student loan repayment to fill hardship posts
overseas have resigned.
OPM said it would continue to work with agencies to
establish budget plans to use strategic recruitment and
retention incentives, including student loan repayments,
and that it anticipates continued growth in the program
in fiscal 2005.
The House Committee on Government Reform has included
oversight of the federal student loan repayment program
on its agenda for 2005, and there is a pending bill
(HR-1765) by chairman Rep. Tom Davis, R-Va., to make the
loan payments tax-free.
