By far, the 22 agencies that provided comments to OPM on the program said the main barrier to getting more out of it was difficulty in funding the program because of budget constraints.
Of the 18 agencies that said funding limited its ability to use the program, eight were unable to use the program at all, the report said.
It said the State Department earmarks funds for the loan program, but most agencies fund it exclusively from salary and expense budgets, making the availability of funds scarce and inconsistent.
Agencies also cited the tax liability of loan repayments as a drag on the tool’s effectiveness with recruitment and retention, but that would require legislative action.
A bill has been proposed to make loan repayments on behalf of employees tax-free, but the so-called “GOFEDS” act and similar legislation introduced in the Senate have not made it into law.
Another barrier to using the program is a three-year service requirement, something one agency called overly burdensome because the penalty is full-reimbursement. Changing this would also require legislation.