STUDENT LOAN REPAYMENT PROGRAM

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This topic contains 15 replies, has 10 voices, and was last updated by  Rebecca Schreiber 8 years, 9 months ago.

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  • #123373

    Natia Johnson
    Participant

    What agencies are participating in the student loan repayment program? What is the application process like? Should more agencies participate in this program? Please share…

    I am an acquisition professional and my agency does not participate in this program 🙁

  • #123403

    Rebecca Schreiber
    Participant

    I have a client at VA who received a $10,000 loan repayment bonus two years ago so the agency participates – they just may not have the budget dollars. Something to be aware of, though, is that this bonus is taxable to you. This means that the bonus could eat up your tax refund.

  • #123401

    Natia Johnson
    Participant

    Wow, I didn’t know that. Thanks for sharing Rebecca.

  • #123399

    Andrew Humulock
    Participant

    I submitted paperwork for my agency, VA a few months ago and am waiting to hear what will happen. With the large changes occuriring in Federal pay and job freezes, it is hard to say who will offer this type of incentive. I suggest, you “shop around” they usually say in the job announcements if they will be offered. If you do, make sure you get it in writing, or even see if they will pay before or right after you are hired.

  • #123397

    Natia Johnson
    Participant

    Good advice. Thank you Andrew! I hope VA approves your loan repayment application soon.

  • #123395

    Sandra Yeaman
    Participant

    State Department was one of the first agencies to offer a Student Loan Repayment Program. The amount has always been below the maximum the law allows, but it has spread the money out to benefit the largest possible number of employees as a result.

    It’s not an easy process to qualify for since the implementing regulations put some gates in the language on when the authority can be used — there are fewer gates for recruitment than for retention.

    Here’s a link to the Department’s FAQs for prospective employees: http://careers.state.gov/root/faqs/faqs/faqs/will-the-federal-government-repay-my-college-loans-2

  • #123393

    Natia Johnson
    Participant

    Thanks for your post Sandra! Any loan repayment is better than none. I’ll take whatever they can give me. 🙂

  • #123391

    Steve Ressler
    Keymaster

    I’ve had a few friends get it at DHS. To me it seems to vary drastically both across agencies and within agencies. So even within DHS, each sub-agency varied. And it depended a lot on your specific division.

    With the high demand for acquisition professionals, I think you should be able to get it at the right agency. I’d also make a case for it (don’t just accept no for an answer). Put together a 1-pager on what agencies using it, the lack of acquisition professionals, and how important to you

  • #123389

    I have heard that my agency, DoD, participates, but only for certain positions. I believe that certain engineers were receiving this benefit as a recruiting / retention tool.

  • #123387

    Tarryn Reddy
    Participant

    Thought this might be useful– The website student.gov has a “Repay Your Loans” section. It has a couple government programs to help you repay your loans.

  • #123385

    Natia Johnson
    Participant

    Great idea. Thanks!

  • #123383

    Natia Johnson
    Participant

    Thank you Bryan and Tarryn.

  • #123381

    Chris Hamm
    Participant

    Hello Natia,

    If they do end up offering this benefit, a word of advice:

    Before signing, be sure that you understand the tax implications. I applied for student loan repayment a few years ago and was shocked to find that the federal government taxes it’s own benefit. So if you get $10,000 that year, that amount is considered income. Uncle Sam will tax you on the $10K and withhold just like regular income, so you will only get about $6K paid directly to the lender.

  • #123379

    Steve Ressler
    Keymaster

    Good catch. Didn’t know that.

  • #123377

    Dave Hetterly IV
    Participant

    The Army Corps of Engineers (at least my district) recently solicited for qualified participants. We were advised that the amount that is approved will be sent ever two weeks to the lender in the form of an allotment on the check.Then the tax implications would be witheld on top of that. So, in theory, you would get what you were approved but then your check will be lower because they witheld taxes from your regular pay. Which is still cheaper than you making the payment yourself!

  • #123375

    Gary T Lefko
    Participant

    With new “Student Loan Reform” where do Feds (like us) find a simple resource that outlines what we qualify or not qualify for? It’s ridiculous we have to chase information like this … 😛 Gary

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