Loan Reimbursement Bill Clears Senate

The Senate has passed S-926, which would raise the maximum amounts agencies may pay their employees as student loan reimbursements from $6,000 to $10,000 annually and from $40,000 to $60,000 lifetime. A similar House bill is expected to be introduced after Congress reconvenes in September. However, raising the maximum amount likely will affect relatively few employees. A recent Office of Personnel Management report covering fiscal 2002 found that only 16 of the 57 major agencies contacted had made such payments, and that only 690 employees across the government received payments, averaging about $4,600. The report attributed the low use of the program to lack of budgeted funds. The payments are used as a recruiting and retention incentive and impose service commitments on recipients.