Updated 02/04

USDA APHIS | HRDG 4537 – Repayment of Student Loans


Subchapter 4537 – Repayment of Student Loans
Section A – When Student Loans Can/Can’t be Repaid

 

 

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Appointments Covered/ Not Covered
Updated 02/04
Student loans could also be repaid for (5 CFR 537.104): Student loans will not be repaid for:
  • Permanent workers;
  • Temporary workers serving on appointments that shall be transformed to a time period appointment of not less than 3 years or everlasting appointments;
  • Term workers with not less than 3 years left on their appointment; or
  • Employees serving on excepted appointments that shall be transformed to time period, profession, or profession conditional, (e.g., Career Intern, Presidential Management Fellows, or Senior Presidential Management Fellows appointments).
  • Schedule C appointees
  • Term workers with lower than 3 years remaining on the appointment. (These workers aren’t eligible as a result of they can’t meet that 3 12 months service requirement laid out in 5 USC 5379), or
  • Non profession Senior Executive Service appointees.
Incentive Uses
Loan Repayment Incentive could also be used: Loan Repayment Incentive might not:
  • For tutorial levels in any respect ranges (degree or sort of educational diploma could also be thought-about in figuring out incentive eligibility)
  • Even if a level, diploma or certificates has not been awarded ( should still be used as a consider figuring out program eligibility)
  • If your worker has defaulted on a qualifying student loan
  • For loans which might be bought or offered by the unique loan holder.
  • Be used to retain an worker who’s leaving the Agency to work for an additional Federal company
  • Be used to recruit present Federal workers from different businesses
  • Follow Agency workers who depart to work for an additional Federal company (together with different USDA businesses). The gaining company isn’t obligated to proceed making any beforehand agreed upon loan funds.
Limits on Loan Payments
Update 12-03

In figuring out the quantity of loan repayments, bear in mind your worker’s worth to the company and the way far prematurely you’ll be able to commit funds. If budgetary issues are a difficulty, you’ll be able to decide the compensation profit yearly (you will need to embody this consideration in your written settlement together with your worker).

Payment quantities are topic to the next limits:

$10,000 per worker per calendar 12 months, and

A complete profession cost of $60,000 per worker (per Public Law 108-123).

Note: You might repay a couple of loan so long as the loan repayments don’t exceed the allowable limits.

Loan Payment Facts
  • Payments might solely be utilized to the indebtedness present on the time you and your worker enter into the settlement.
  • Payments might not start earlier than your worker enters on responsibility.
  • Loan advantages are along with primary pay and another type of compensation payable to your worker.
  • The use of this incentive isn’t topic to the mixture limitation on pay.
  • The National Finance Center (NFC) will make funds on to the holder of the loan by digital funds switch.
  • MRP businesses aren’t chargeable for paying lender-assessed late charges for late loan funds. Employees are chargeable for any late charges.

Note: Human Resources Division’s Leave and Compensation Unit, Minneapolis, Minnesota, along side NFC, will work diligently to make sure that the timing of funds to the lender coincides with the date the loan cost is due.

Other Available Pay Flexibilities You might use this incentive along with different pay flexibilities (e.g., Recruitment bonus, retention allowance).
READ:   All You Need to Know

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