The House has passed a higher education bill that includes
language making federal employees eligible to receive up to
$5,000 in student loan forgiveness if they have completed a
B.A. or advanced degree and serve for five consecutive years.
Federal workforce subcommittee chairman Jon Porter, R-Nev.,
introduced the language in an amendment adding federal
employees and other public sector workers to the federal
program that helps people in certain jobs pay off student
loans.
An earlier bill — the so-called GOFEDS act — would make
student loan repayments that agencies pay on behalf of
federal employees tax-free, but while it passed in committee
it has yet to reach the floor for a vote.
Currently, agencies can repay student loans on behalf of
their employees — up to $10,000 a year with a $60,000
total cap per employee. That comes out of agency budgets,
but the amendment to HR-605 sets aside funds in a Department
of Education program for loan repayments.
HR-609, the College Access and Opportunity Act of 2005,
passed the House by a 221 to 199 and now awaits action in
the Senate.
“By expanding loan forgiveness, we’ll encourage more highly
trained young men and women to enter and continue in areas
of public service,” said Porter.
