Cost, Other Issues Continue

One reason commonly cited for lack of use of the program is funding restrictions. The report noted that about 2700 loan incentives were paid out to employees in 2004, at a total cost of about $15 million—meaning an average payout of $5,600. CRS noted that several bills pending in Congress relate to student loan repayment—HR-1765 and S-1255, which would make repayments not subject to income tax (a way to effectively boost the value to employees without increasing the agency’s outlay), and S-2450, which would establish a pilot program to authorize repayments for federal employees with specific skills. CRS added that the service agreements that accompany the payments are another sticking point, but there are no legislative proposals pending to change that requirement.