HRDG 4537 - Repayment of Student Loans - Section B

Decides to repay a student loan and checks the web site below to see if a loan qualifies for repayment.

This program is limited to student loans authorized under the Higher Education Act of 1965 or the Public Health Service Act. These are Federally-insured loans made by educational institutions or banks and other private lenders. A list of qualifying loans is located on the internet at:

OPM

Since this list will be occasionally updated, remember to check the website before making any decision to offer the incentive. Examples of qualifying loans: Stafford Loans and/or Nursing Student Loan Program loans.

AMS only:

• Approval to repay a student loan must be obtained prior to making an offer.
• All Service Agreements must note that “Repayment of the loan is subject to the availability of funds each fiscal year.”

Confirms employee debt with candidate's/employee's loan institution. This means:

• Having your candidate/employee sign MRP Form 250-R (40.29 KB), Release to Obtain Student Loan Information.
• Contacting the loan holder and verifying that your employee has an outstanding loan that qualifies for repayment.
• Verifying the remaining balances to ensure loans are not overpaid.

When request is approved:

• Completes written service agreement (MRP Form 251-R (49.75 KB)) with the candidate / employee.
• Discusses the conditions of the service agreement with the candidate / employee.

Activates initial payment by sending the Servicing Personnel Office a copy of:

• Approved Request (MRP Form 252-R (96.09 KB))
• Written justification
• Service Agreement (MRP Form 251-R (49.75 KB))
• Release to Obtain Student Loan Information (MRP Form 250-R (40.29 KB))

AMS only: All Service Agreements must note that “Repayment of the loan is subject to the availability of funds each fiscal year.”

Note: Make sure the SPO has a copy of all needed information.

To initiate subsequent years’ payments, officials must:

• Review the written justification to ensure the conditions continue.
• Review and update, as necessary, MRP 251-R (49.75 KB). Any changes must be initialed and dated by both parties.
• Review and sign an updated form MRP 252-R (96.09 KB) as indicated on the form.
• Submit the following forms to the SPO:
  • Copy of the written justification,
  • Copy of forms MRP 250-R (40.29 KB) and 251-R (49.75 KB),
  • Copy of the employee’s most recent monthly loan statement, (remember to protect PII),
  • Loan account number and mailing address of the loan institution where payment is to be mailed,
  • FMMI code that is to be charged, and
  • Copy of the re-approved MRP 252-R (84.24 KB)

Keeps Maintains records as outlined in the Records section. of loan repayments documentation (above) for a minimum of 3 years after the loan is repaid or after OPM formally evaluates the program, whichever is later:

• Copy of written justification
• Copy of MRP 250-R
• Copy of MRP 251-R
• Copy of MRP 252-R
• Complete name and address of institution that received the repayment
• Any other relevant data

Note: OHRM will request Race, Sex, National Origin, and Disability information from the NFC data base (Appendix C, DR 4050-537, dated April 2, 2002).

Note: Throughout the duration of the service agreement, any changes to its terms must be documented and agreed to, in writing by both the Agency and the employee with a copy provided to the SPO for any necessary action.

• Qualifications such as subject matter knowledge, skills, abilities, etc.
• Prevailing or forecasted labor-market conditions.
• Recent turnover in similar positions.
• The success of recent efforts to recruit high quality candidates.
• Impact on the morale of current employees.

• The success of recent efforts to retain employees with similar qualifications in similar positions.
• The availability in the labor market of candidates for employment, who with minimal training or disruption of services to the public, could perform the full range of duties and responsibilities assigned to the position held by the employee.
• Effects on morale of co-workers.
• Explain your knowledge of the employee's efforts to find employment outside the Federal Service and the results of those efforts (e.g., written job offers).

• The high or unique qualifications of the employee or special need of the agency for the employee's services makes it essential to retain him/her and,
• In the absence of offering this benefit, the employee would be likely to leave for employment outside the Federal service.
• The written justification must describe the extent to which the employee's declination of a job offer or departure would affect the agency's ability to carry out an activity or perform a function deemed essential to the agency's mission.

(unless otherwise agreed to in the service agreement)