Student Loan Executive Order: A Game-Changer for Federal Employees

The recent executive order on student loans has brought relief to many federal employees who have been struggling with the burden of debt. The order, which aims to make it easier for federal agencies to repay Federally insured student loans as a recruitment or retention incentive for candidates or current employees, is expected to have a significant impact on the federal workforce.

According to the Higher Education Act of 1965 and other relevant laws, loans eligible for payment are those made, insured, or guaranteed under parts B, D, or E of title IV of the act. This includes health education assistance loans made or insured under part A of title VII or part E of title VIII of the Public Health Service Act.

Under the executive order, any employee (as defined in 5 U.S.C. 5379) is eligible to participate in a student loan repayment program set up by their agency. This includes employees occupying positions excepted from the competitive civil service because of their confidential, policy-determining, policy-making, or policy-advocating nature.

The Federal student loan repayment program permits agencies to repay Federally insured student loans as a recruitment or retention incentive for candidates or current employees of the agency. This is expected to have a significant impact on the federal workforce, particularly in terms of attracting and retaining highly qualified employees.

In addition to the benefits to individual employees, the executive order also has implications for federal agencies as a whole. The ability to repay student loans may help to attract and retain top talent, leading to improved performance and better outcomes for the agency.

The executive order is part of a broader effort by the federal government to promote diversity, equity, inclusion, and accessibility in the workplace. This includes initiatives such as workforce planning and analysis, voluntary separation incentive payments, guidance for agency leaders and coordinators, and employee wellness programs.

Overall, the student loan executive order has the potential to make a significant difference in the lives of federal employees struggling with debt. By providing a way for agencies to repay Federally insured student loans as a recruitment or retention incentive, this order is expected to have far-reaching benefits for both individual employees and federal agencies as a whole.

Source: Federal Student Loan Repayment Program; Higher Education Act of 1965; Public Health Service Act; 5 U.S.C. 5379.

Student loan executive order