Federal Employee Student Loan Assistance Act

Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 926) to amend section 5379 of title 5, United States Code, to increase the annual and aggregate limits on student loan repayments by Federal agencies

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on S. 926.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today to speak in favor of S. 926, a bill introduced by my colleague, Senator Voinovich, to increase the annual and total limits of student loan repayments by executive branch agencies.

This is identical to a bill that I introduced on the House side, H.R. 3080. We are considering the Senate version of this bill, the Federal Employee Student Loan Assistance Act, which has already passed that Chamber in an effort to speed up approval of this important piece of legislation.

I want to thank the leadership for bringing this matter to the floor today. As the chairwoman of the Subcommittee on Civil Service, Census and Agency Organization of the Committee on Government Reform, I have raised the same questions at many of our hearings this year: How do we attract the most qualified people to government service and how do we keep them once they have started?

Recruiting, retraining, and rewarding talented and hardworking individuals are at the very core of making our civil service the best that it can be. Very clearly, having the ability to tell potential recruits, come work for the United States Government and we can help you repay your student loans, is an extremely valuable tool.

All of us are surely aware of how expensive a college or graduate- level education is. And it is the prospect of these daunting student loans, $50,000, $75,000, or even more than $100,000, that can prevent public service-minded people from coming to work for the government. They simply cannot afford it.

Student loan repayment is at the top of the list for newly graduated students looking for jobs. To keep up with the higher salaries of the private sector and nonprofit organizations, the Federal Government must have an effective student loan repayment program. This legislation before us today raises the annual maximum amount that agencies could give towards student loan repayment, from $6,000 a year to $10,000 a year. It also raises the total amount an agency can contribute toward an individual's loan, from $40,000 to $60,000. These changes reflect the increases in annual college tuition costs since the Federal Government's original Student Loan Repayment Bill was enacted in 1991.

All funds to pay for the repayment program come out of the agencies' own budgets, so this legislation has no negative impact on the current budget. It is the right thing to do and something that we must do in order to remain competitive in the job market. I strongly urge my colleagues to pass the Federal Employee Student Loan Assistance Act before us today.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, rising tuition rates force families to borrow thousands of dollars to fund their children's college education. The debt that these families and new graduates face after graduation is daunting. The majority of college students today will have more loans over $20,000 by the time they graduate. Public and private employees who administer programs that could help employees reduce their college loan costs have a valuable recruitment and retention tool. The Federal Student Loan Program permits Federal agencies to repay federally insured student loans as a tool to attract or retain highly qualified employees.

Under current law, agencies may authorize a student loan repayment of up to $6,000 for an employee in any year and up to a lifetime limit of $40,000. An employee receiving this benefit must sign a service agreement to remain in the service of the paying agency for at least 3 years. If an employee leaves the agency before that time, he or she must reimburse the agency for the loan repayment. S. 926, the Federal Employee Student Loan Assistance Act, will increase the allowed annual loan repayment from $6,000 to $10,000 and the allowed life-time loan repayment allowed from $40,000 to $60,000. The increases reflect the rising college tuition costs since enactment of the original statute in 1991.

Several agencies have reported that the use of program has helped them achieve their recruitment and retention goals. However, the program is generally underutilized due to lack of agency funding caused by limited budgets. If government service is to become a viable and attractive option for college graduates and talented employees, the Federal Government must use all the tools and resources at its disposal to attract and retain these individuals. S. 926 is a step in the right direction; but without funding and without aggressive use of this and similar programs to promote Federal civil service,

the Federal Government will be left behind in the competition for top talents.

Mr. Speaker, I strongly support this legislation.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I rise today in support of S. 926, the ``Federal Employee Student Loan Assistance Act,'' which will increase the annual and aggregate limits on student loan repayments by Federal agencies.

Many federal employees have undergraduate and graduate degrees, and due to the rising cost of higher education, most of these employees have incurred student loans with hefty payments. Many talented graduates are interested in federal employment, but due to loan repayment burdens, they are unable to seriously consider federal employment. In order to remain competitive with private agencies that offer higher salaries, the federal government must continue to offer additional incentives, such as loan repayment programs.

As tuition costs continue to rise yearly, we must factor this into the existing loan repayment program for federal employees. This bill, which will cost less than $500,000 per year, will have a significant impact on both current and potential federal employees who are burdened with outstanding student loans. Increasing the yearly and total amounts of loan repayment allotted to individual federal employees helps the federal government to attract the best and the brightest employees, those who might otherwise opt out for higher salaries in the private sector.

This is a good bill, and I urge all of my colleagues to support S. 926, the ``Federal Employee Student Loan Assistance Act,'' which will not only help to recruit quality federal employees, but will also encourage longevity and retention of these very same employees. These programs also serve as an excellent model for all employers, both public and private.

Mr. Speaker, S. 926, the Federal Employee Student Loan Assistance Act, would raise the annual and aggregate amounts that federal agencies can offer a qualified employee to assist in repaying a student loan. This legislation would raise the annual repayment amount for an employee from $6,000 to $10,000, and the aggregate repayment amount from $40,000 to $60,000.

The purpose of raising the annual and aggregate repayment caps is two-fold. First, higher education tuition costs have increased dramatically in recent years and are considerably higher than they were when the original statute was passed on November 5, 1990. Second, as the federal government works to recruit and retain the best and the brightest, an attractive student loan repayment program should be an effective recruitment tool to help government agencies compete with the private sector.

I would like to commend the Senate sponsors of this legislation for introducing this important legislation, and I would also like to commend the House Civil Service Subcommittee Chairwoman for introducing companion legislation in the House.

I urge all Members to support S. 926.