Proposed Rule: Civil Service Regulations: Student Loans Repayment | PDF | Student Loan

Proposed Rule: Civil Service Regulations: Student Loans Repayment | PDF | Student Loan



Federal Register

/Vol. 72, No. 5/Tuesday, January 9, 2007/Proposed Rules

Proposed rule Description of proposed change



Agreement modifications.

The present sentence on


will increase






 can be eliminated. The substitute sentence would make clear that the company and the worker could mutually agree to change a service settlement to pro-vide further student loan compensation advantages for added service with out the necessity for a brand new service settlement. (A brand new service settlement would require further service of at the least 3 years. In distinction, an settlement modification might, for instance, add simply 1 yr of further service.) The risk of fee will increase would now be ad-dressed within the new sentence added to paragraph (a).

Periods in a non-pay standing.

A brand new rule would supply that intervals of depart with out pay, or different intervals throughout which the worker shouldn’t be in a pay standing, wouldn’t depend towards completion of the required service interval. This means the initially projected service completion date have to be prolonged by the whole period of time spent in non-pay sta-tus. However, as supplied by 5 CFR 353.107, absence due to uniformed service or compensable damage is con-sidered creditable towards the required service interval upon reemployment.



Service interval graduation.

A brand new paragraph can be added to handle when a service interval begins.



Reimbursement provision in service settlement.

A brand new provision would require businesses to incorporate in any service settlement a provision addressing whether or not or not the person will likely be required to reimburse the company for student loan compensation advantages if she or he transfers to a distinct company throughout the service interval. (Also see proposed


537.109(b)(2), which might incorporate language at present present in





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Loss of eligibility.

Proposed paragraph (a)(3) would make clear that lack of eligibility primarily based on a situation within the service settlement would happen solely when the settlement expressly states {that a} violation of the situation will end result within the lack of eligibility.



Reimbursement below a modified service settlement.

Current language can be modified to make clear what would hap-pen when an company and an worker mutually agree to change an current service settlement to supply further student loan compensation advantages for added service (e.g., a 4th yr following an preliminary 3-year service interval). The modified service settlement could stipulate that if the worker completes the preliminary service interval however fails to com-plete the extra service interval, she or he can be required to reimburse the paying company just for the quantity of any student loan compensation advantages acquired throughout the further service interval. (Also see proposed


537.107(b) relating to modified service agreements.)



Records retention.

Current language can be modified to make clear {that a} report on a dedication to supply student loan compensation advantages have to be retained for at the least 3 years after the tip of the worker

s service interval as spec-ified within the service settlement. We are deleting the supply relating to an earlier date linked to an OPM program re-view as a result of as a sensible matter a program assessment could not essentially imply every case is reviewed individually.




A brand new provision would require businesses to report on the student loan compensation advantages they supplied throughout the earlier calendar yr slightly than throughout the earlier fiscal yr. Currently, businesses are required to report back to OPM by the tip of the calendar yr on the student loan compensation advantages they supplied throughout the earlier fiscal yr. However, the legislation imposes a calendar yr limitation on the quantity of student loan compensation advantages an company could present to an worker. Also, we notice businesses are at present required to report back to OPM on their use of different recruitment and retention flexibilities (e.g., recruitment, relocation, and retention incentives below 5 CFR half 575) on a calendar yr foundation. Therefore, we’re proposing this transformation to simplify reporting necessities for agen-cies. The proposed regulation would require businesses to report back to OPM by March thirty first of every yr on their use of the student loan compensation authority throughout the earlier calendar yr. In paragraphs (b)(1) and (b)(2), we suggest to exchange

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staff chosen to obtain




staff who re-ceived


 as a result of a person could also be chosen to obtain student loan compensation advantages throughout one reporting pe-riod, however not really obtain advantages till the next reporting interval. This change can be per our strategy for reporting information on student loan repayments in our annual report back to Congress.

E.O. 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget in accordance with E.O. 12866.

Regulatory Flexibility Act

I certify that these rules would not have a big financial impression on a considerable variety of small entities  as a result of they’d apply solely to Federal businesses and staff.

List of Subjects in 5 CFR Part 537

Administrative follow and process, Government staff, Students, Wages.

U.S. Office of Personnel Management.

Linda M. Springer,


Accordingly, OPM is proposing to revise 5 CFR half 537 to learn as follows:

PART 537


Sec. 537.101Purpose. 537.102Definitions. 537.103Agency student loan repayment plans. 537.104Employee eligibility. 537.105Criteria for payment. 537.106Conditions and procedures for offering student loan compensation  advantages. 537.107Service agreemalests. 537.108Loss of eligibility for student loan compensation advantages. 537.109Employee reimbursements to the Government. 537.11Records and reports.

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5 U.S.C. 5379(g).



This half implements 5 U.S.C. 5379, which authorizes businesses to determine a student loan compensation program for the goal of recruiting or retaining extremely certified personnel. Under such a program, an company could conform to repay (by direct fee to the loan holder on  behalf of the worker) all or a part of any excellent qualifying student loan or loans beforehand taken out by a job candidate to whom a suggestion of employment has been made, or by a present worker of the company.




has the that means provided that time period in subparagraphs (A) by means of (E) of 5 U.S.C. 4101(1).

Authorized company official

means the head of an Executive company or an official who is allowed to behave for the head of the company within the matter involved.


means an worker of an company who satisfies the definition of the time period in 5 U.S.C. 2105.

Loan fee

means the online fee made by an company to the holder of a student loan (after deducting any tax withholdings that could be comprised of the

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