The report adds, though, that barriers to wider use of student loan repayments remain—only 33 agencies used the authority in 2014 out of the 83 agencies responding to an OPM data request—including the often-cited lack of funding.
“Several agencies, including those utilizing the program, specifically commented that budgetary issues were a major impediment to using or maximizing the use of student loan repayments as a recruitment or retention tool in CY 2014 and would likely remain one in the near future,” the report said.
The three-year service requirement also is an issue, since some candidates or current employees “are uncomfortable” with making that commitment. Generally, an employee who leaves before the end of that period must pay it back.
Also, the taxability of the payments effectively reduces their value—bills have been proposed, but never enacted, to make the payments tax-free—and the amounts available have remained the same for years even though student loan debt levels have increased sharply in that time.
