T
oR
TyR
United
States
Department
Of
the
Interior
OFFICE
OF
THE
SECRETARY
Washington,
DC
20240
QgCH
3f
A
2014
Personnel
Bulletin
No.
14-
02
SUBJECT: Departmental
Policy
on
the
Student
Loan
Repayment
Benefit
Plan
1.
Purpose:
This
Personnel
Bulletin
establishes
the
Department
of
the
Interior'
s (
DOI)
policy
for
the
repayment
of
federally
insured
student
loans
when
necessary
to
recruit
or
retain
highly
qualified
employees.
This
Bulletin
supersedes
Personnel
Bulletin
04 -
08 (
537).
2.
Scope:
This
policy
applies
to all
bureaus
and
offices
with
the
DOI.
3.
Authority:
Title
5,
United
States
Code (
U.
S.
C.)
section
5379
and
title
5,
Code
of
Federal
Regulations (
CFR)
Part
537.
4.
Introduction:
Public
Law
108 - 136 (
National
Defense
Authorization Act
for
Fiscal
Year
2004)
amended
title
5
U.
S.
C.
by
adding
section
5379
which
established
the
statutory
authority
for
repayment
of
student
loans.
This
policy
implements
the
provisions
of
5
U.
S.
C.
5379.
Upon.
issuance,
DOI
bureaus
and
equivalent
organizations
may
use
this
policy
as
authority
for
the
repayment
of
student
loans.
The
benefit
is
limited
to outstanding
federally
insured or
guaranteed loans,
as
defined
in
5
CFR
537.
102,
made
by higher
education
institutions
or
banks
and
other
private
lenders
as
authorized
by
the
Higher
Education
Act
of
1965 (
20
U.
S.
C.
1071
et
seq.;
20
U.
S.
C.
1087a
et seq.,
1087aa
et seq.)
and
the
Public Health
Service
Act (
42
U.
S.
C.
292
et
seq.;
42
U.
S.
C.
297a et
seq.).
5.
Policy:
A
bureau
or
office
may
offer
a
student
loan repayment
benefit
to
facilitate
the
recruitment
or
retention
of
highly
qualified
employees
who
meet
the
eligibility
criteria
established
in
5
CFR
537.
104.
Employee
has
the
meaning
given
in
5
U.
S.
C.
2105,
except,
employees
serving under
Schedule
C
appointments
are
not
covered
by this
policy.
Employees
who
have
defaulted
on
student
loans
are
not
eligible
for
the
incentive
until
the
loan
is
removed
from
default.
The
amount
paid
by
the
bureau
or
office
is
subject
to
a
maximum
limit
of $
10,
000
per
employee, per
calendar
year
and
a
lifetime
total
of $
60,
000
oer
employee.
a.
Approving
Officials.
1)
Decisions
to
approve or
disapprove
a
student
loan
repayment
benefit
for
employees
in
the
Office
of
the
Secretary
will
be
made
by
the
Assistant
Secretary —
Policy,
Management
and
Budget (
PMB).
Requests
will
be
submitted
through
the
appropriate
Assistant
Secretary
or
equivalent
official
to
the
Assistant
Secretary -
PMB.
This
authority
may
be
re-
delegated
at
the
discretion
of
the
Assistant
Secretary —
PMB.
2)
Except
for
employees
covered
by
paragraph,
5a(
1)
above,
decisions
to
approve
or
disapprove
a
student
loanrepayment
benefit
will
be
made
no
lower
than
the
heads
of
bureaus
or
equivalent organizations.
With
their
Assistant
Secretary'
s
approval,
a
bureau
or
equivalent organization
head
may
re-
delegate
approval
authority
to
an
appropriate
official(
s),
no
lower
than
two
supervisory levels
below
the
bureau
or
equivalent organization
head.
3)
All
delegations
of
approval
will
be
made
in writing.
Copies
of
delegations
will
be
forwarded
to
the
Office
of
Human
Resources
Policy
within
two
weeks
of
the date
of
the
delegation.
4)
At
this
point,
and
throughout
the
remainder
of
this
Personnel
Bulletin,
the
terms "
bureau"
and "
bureau
head" also
refer
to
organizations
and
heads
of
organizations
that
are
equivalent to
a
bureau,
e.
g.,
Office
of
the
Solicitor.
b.
Criteria
for
Payment.
The
following
criteria
must
be
met
or
considered
in
authorizing
a
student
loan repayment
benefit.
1)
Recruitment.
A
student
loan
repayment
benefit
may
be
paid
provided
there
is
a
written
determination
by
the
approving
official
that,
in
the
absence
of
such
a
benefit,
the
bureau
would
encounter
difficulty
in
filling
the
position
with
a
highly
qualified
candidate.
Determinations
for
recruitment
purposes
must
be
made
before
the
employee
actually
enters
on
duty
in
the
position
for
which
he
or
she
was
recruited.
2)
Retention.
A
student
loan
repayment
benefit
may
be
paid
provided
there
is
a
written
determination
that
the
highor
unique
qualifications
of
the
employee
or
special
need
of
the
bureau
for
the
employee'
s
services
makes
it
essential
to
retain
the
employee,
and
that,
in
the
absence
of
offering
the
student
loan
repayment
benefits,
the
employee
would
be
likely
to
leave
for
employment
outside
the
federal
service.
This
determination
must
be based
on
a
written
description
of
the
extent
to
which
the
employee'
s
departure
would
affect
the
bureau'
s
ability
to
carry out
an
activity
or
perform
a
function
essential
to
its
mission.
3)
Selecting Employees. When
selecting
employees
to
receive
student
loan
repayment
benefits,
bureaus
must
adhere
to
merit
system
principles
andtake
into
consideration
the
need
to
maintain
a
balanced
workforce
inwhich
women
and
members
of
minority
groups
are
appropriately
represented
in
the
Government
service.
Bureaus
will
establish
oversight
and
accountability
procedures
to
assess
and
ensure adherence
to
these
requirements.
c.
Service
Agreement.
A
student
loan
repaid
under
5
CFR
537.
106
will
be
in
accordance
with
the
terms,
limitations
and
conditions
of
a
written
service
agreementbetween
the
bureau
and
employee.
The
benefit
paid
will
be
in
addition
to
basic
pay
and
any
other
form
of
compensationpayable
to
the
employee.
A
sampleagreement
is at
Appendix
A.
1)
The
minimum
period
for
continued
service
under
5
U.
S.
C.
5373is
three
years.
Where appropriate,
an
approving
official
may
seek
agreements
requiring
a
period
of
service
beyond
threeyears.
The service
requirement
begins
when
the
bureau
makes
the
first
payment
to
the
holder
of
the
loan.
Individuals
must
reimburse
the
bureau
for
the
gross
amount
of
the
student
loan
repayment
benefit
paid
under
the
agreement
if
their
employment
with
DOI
terminates
before
completing
the
period
of
employment
specified
in
the
service
agreement
because:
a)
They
are
separated
involuntarily
on
account
of
misconduct
or
performance,
or;
b)
They
leave
the
DOI
voluntarily
except
in
the
cases
where
they
leave to
accept
employment
in
another
federal
agency and
the
service
agreement
does
not
stipulate
that
repayment
is
required
in
such
cases ( see
paragraph
c(
4),
below).
2)
Prior
to
authorizing
loan
repayments,
bureaus
must
verify
with
the
holder
of
the
loan
that
the
employee
has
an
outstanding
student
loan
that
qualifies
for
repayment
under
this
policy.
The
remaining
balance
will
be
verified
to
ensure
the
loans
are
not
overpaid.
Further,
since
it
is
DOI'
s
policy
to
pay
the
net
amount
to
the
loan
holder,
the
entire
loan
repayment
schedule
must
be
determined
using the
loan
balance
at
the
time
of
the
initial,
and
not
the
loan
balances
existing
in
subsequent
years,
in
order to
avoid
an
overpayment.
For
example,
if
the
loan
balance
at
the
time
of
the
initial
agreement
is $
14,
000,
then
the
maximum
amount
that
can
be
authorized
is $
10,
000.
In
accordance
with
DOI
policy,
the
net
amount
of
approximately $
6,
000
would
be
disbursed
to
the
loan holder.
A
subsequent
year'
s
verification
of
the
loan
balance
would
give
the
appearance
that
a $
4,
000
balance
remained
for
which
a
loan
repayment
could
be
disbursed
in
the
2
d
year.
This
would
be
incorrect.
The
full
amountauthorized, $
10,
000
has
already
been
disbursed,
although
only
the net
amount
was
applied to
the
outstanding
balance
of
the
loan.
For
this
reason,
the schedule
of
payments
must
be
determined
from
the
loan
balance
at
the
time
of
the
initial
loan
repayment
authorization
and
not
from
subsequent
year
balances.
This
verification
and
a
schedule
of
payments
will
be
included
in
the service
agreement.
Bureaus
may
repay
more
than
one
loan
as
long
as
the
payments
do
not
exceed
the
legally
prescribed
limits.
3)
An
employee
receiving
loan
repayment benefits
will
be
ineligible
for
continuedbenefits
if
the
employee:
a)
Separates
from
DOI;
or
b) does
not
maintain
an
acceptable
level
of
performance,
as
determined
under
the
standards
and
procedures
prescribed
for
DOI;
or
c)
Violates
any
of
the
conditions
of
the
service agreement.
4)
If
an
employee
leaves
DOI
voluntarily
to
enter
the
service
of
another
luderal
agency
befure
cojijpleting `
t11e
service
req'
l
Irernent,
11e /
she
Will
riot
be
requlrCU
LU
repay
the
loan
repayments
made
on his/
her
behalf
unless
such
repayment is
otherwise
specified
in
the
serviceagreement.
If
the
service
agreement
does
notrequire
repayment,
the
losing
bureau
will
contact
the
gaining
federal
agency
and
inform
that
agency
of
the
employee'
s
continued
service
requirement
and
coordinate
repayment
procedures
with
them
if
that
employee
leaves
federal
service
before
completing
the
remaining
service.
5)
Employees
receiving
loan
repayment
benefits
must
agree
to
make
loan
repayments
on
the
portion
of
the
loan(
s)
that
continues
to
be
their
responsibility.
The
service
agreement
must
state
that
failure
to mare
their
loan
repayments
terminates
eligibility
for
further
loan
repaymentbenefits,
6)
Loan
payments
made
for
periods
of
service
that
are
not
completed
in
accordance
with
individual
service
agreements
are
subject
to
DOI'
s
debt
collection
process.
Collection
will
be
accomplished
in
accordance
with
the
Department'
s
regulations
for
collections by
offset
from
an
indebted
Government
employee under
5
U.
S.
C. 5514
and
5
CFR
550,
subpart
K.
The
repayment may
be
waived,
in
whole
or
in
part,
by
Assistant
Secretaries,
or
officials
they
have
authorized
to
waive
debt
recovery,
when
recovery
would
be
against
equity
and
good
conscience
or
against
the
public
interest.
7)
Employing
bureaus
are
responsible
for
monitoring
employees'
periods
of
service
requirements
and
taking
action
to
recoup
the
amount
of
the
loan
repayments
in
the
event
an
employee
leaves
DOI
before
fulfilling
his/
her
service
requirement.
If
an
employee'
s
student
loan
repaymentbenefits
are
terminated
because
he /
she
moves,
within
DOI,
to
another
bureau before
completing
the
period
of
service
requirement,
the
losing
bureau
will
inform
the
gaining
bureau
of
the
employee'
s
remaining
service
requirement.
The
gaining
bureau
will
monitor
the
employee'
s
service
requirement
and
take
action
to
recoup
the
amount
of
the
loan
repayment
if
the
employee
terminates his/
her
employment
with
DOI
prior
to
completing
the
service
requirement.
Money
recouped
by
the
employing
bureau
will
be
transferred
to
the
bureau
that
disbursed
the
student
loan
repayments.
d.
Payment
Procedures.
1)
The
Interior
Business
Center'
s
Payroll
Operations
Division
will
disburse
payment
to
the
loan
holder
on
an
annual
basis
following
written
authorization
from
the
approving
official.
Approvingofficials
will
send
a
separate
written
authorization
in
each
year
that
such
disbursement
is
authorized.
The
written
authorization
will
specify
the
gross
amountauthorized
to
be
disbursed
to
each
lender.
The
total
amount
authorized
will
not
exceed $
10,
000
percalendar
year.
The
authorization
letter
will
also
include
thename
and
address
of
the
lender
and
other
information
provided
by
the
lender
necessary
to
process. the
loan repayment
e.
g.,
loan number.
The
loan
repayment amount
disbursed
to
the
lender
will
be
the
net
amount
after
all
taxes
and
other
assessments
have
been
withheld.
DOI
is
not
responsible
for
any late
fees
assessed
by
the
loan
holder.
2)
Alternate
payment
procedures
must
comply
with
5
CFR
537.
106,
and
must
be
included
in
the
service
agreement
and
requires
the
prior
approval
of
the
Chief,
payroll
Operations
Division,
Interior
Business
Center
and
the
Director,
Office
of
Human
Re$
ourees (
OPIR)
Pnliey ,
e.
Documentation
and
Records.
The
Department'
s
Human
Capital (
HC)
Strategic
Plan
has
a
focus
area
dedicated
to "
enhancing
a
quality
workplace
and
competitive
benefits."
Use
of
the
student
loan
repayment
benefit
program
is
a
positive
indicator
of
program
performance
in
that
area.
Bureaus
should
track
usage
in
their HC
accountability
systems
and
encourage
their
use.
Further,
each
designated
approving
official
is
responsible
for
ensuring
that
the
basis
for
any
student
loan
repayment
benefit
is
documented
in
accordance
with
5
CFR,
Part
537
and
this
policy.
Documentation
shall
be
available
for
review
and
submission
upon
request.
In addition,
as
prescribed
by
the
U.
S.
Office
of
Personnel
Management,
each
bureau
shall
compile
and
report
annually,
through
the
OHR
Policy,
the
following
information:
1)
The
number
of
employees
selected
to
receive
this
benefit;
2)
The
cost
to
the
federal
government
for
providing
benefits under
this
plan;
and
3)
The
job
classifications
of
the
employees
selected
to
receiveloan
repayment
benefits.
f.
Program
Oversight
and
Evaluation.
Heads
of
Bureaus
will
review
the
use
and
effectiveness
of
the
student loan
repayment
authority
at
least
annually. The
results
of
such
reviews
will
be
made
available
upon
request.
A
copy
of
any
implementing
guidance
established
by
a
bureau
will
be
forwarded
to
the
OHR
Policy.
6.
The
Department
office
of
primary
responsibility
is
the
Office
of
the
Secretary —
Office
of
Human
Resources,
Talent,
Acquisitions
and
Retention
Division,
Mail
Stop (
MS)
4349,
M1B.
Since
Thomas
Mulhern
Director,
Office
of
Human
Resources
Attachments:
Appendix
A:
Sample
Student
Loan
Repayment
Agreement
Appendix
B:
Types
of
Student
Loans
Covered
Under
the
Higher
Education
Act
and
the
Public
Health
Service
Act
APPENDIX
A
SAMPLE
STUDENT
LOAN
REPAYMENT
AGREEMENT
DEPARTMENT
OF
THE
INTERIOR
STUDENT
LOAN
REPAYMENT
SERVICE
AGREEMENT
Title
5
U.
S.
C.
5379
allows
repayment
of
outstanding
federally
insured or
guaranteed
student
loans
made
by
educational
institutions or
banks
and
other
private
lenders
as
authorized
by
the
Higher
Education
Act
of
1965
and
the
Public
Health
Service
Act,
as
defined
in
5
CF'
R
537.
102.
Student
loan
repayments
are
made
directly
to
the
leader subject
to
the
conditions
stated
in
this
agreement. Use
of
this
authority
in
no
way
constitutes
a
right,
promise,
or
entitlement
for
continued
employment
or
noncompetitive
conversionto
the
competitive
service.
CONDITIONS
OF
EMPLOYMENT
BUREAU)
agrees
to
provide
a
student
loan
repayment
benefit
to:
EMPLOYEE
SOCIAL
SECURITY
NUMBER
POSITION
subject
to
the
conditions
of
employment
stated
in
this
document
STATE
CONDITIONS
OF
EMPLOYMENT
SPECIFIC
TO
EACHAGREEMENT
AS
DESCRIBED
IN
5
CFR
537.
107(
x)
HERE,
OR
ATTACH
AS
SEPARATEPAGE.)
CONDITIONS
OF
LOAN
REPAYMENT
I
agree
to
complete (
MINIMUM
OF
THREE
YEARS
SERVICE)
for
the
BUREAU) .
My
period
of
service
begins
when (
BUREAU)
makes
the
first
payment
to:
LENDER
NAME
AND
FULL
ADDRESS)
In
return, (
BUREAU) ,
through
its
payrollprovider,
will
make
payments on
my
outstanding
federally
insured
or
guaranteed
loan
under
the
following
terms.
Increases
or
renewals
made
under
this
part, not
to
exceed $
10,
000
each
calendar
year
up
to
a
lifetime
total
of
60,
000, (
may / may
not)
be made
without
requiring
anew
service
agreement.
REPAYMENT
AMO
EARS
TOTAL
LOAN
REPAYMENT
PROCEDURES
The
Interior
Business
Center'
s
Payroll
Operations
Division
will
make
payments
to
LENDER)
on
an
annual
basis.
The
payroll
Operations
Division
will
disburse
the
net
of
the
repayment amount
to
the
loan
holder,
Income
and
employment
taxes
will
be -
kvith
eld
from
the
gross
amount
of
the
loan
repayment
amount.
I
understand
that
my
W-
2
form
will
show
the gross
amount
of
the
repayment
as
wages
and
that
taxes
and
other
assessments,
deducted
from
the
gross
amount,
will
be
shown
in
their
appropriate
categories
on
the
W -
2
Form.
Payments
to
lenders
will
be
in
the
form
determined
by
the
Payroll
Operations
Division.
The
Department
of
the
Interior
is
not
responsible
for
any
late
fees
or
penalties
assessed
by
the
loan
holder(
s)
prior,
during,
or
subsequent
to
this
agreement.
TERMINATION
AND
REIMBURSEMENT
OF
LOAN
REPAYMENT
BENEFIT
I
understand
I
will
no
longer
be
eligible
for
the
loan
repayment
incentive
if
I
voluntarily
end
my
employment
with
DOI,
am
separated
for
reasons
of
misconduct
or
performance,
fail
to
maintain
an
acceptable
level
of
performance,
or
in
any
way
violate
the
terms
of
this
agreement.
Further,
I
understand
that
if
my
employment
with
the
Department
of
the
Interior
terminates,
for
the
aforementioned
reasons, (
indicate
as
appropriate: "
except"
or "
including ")
when
I
leave
DOI
to
accept
employment
in
another
federal
agency,
before
I
have
completed
the
period
of
service
specified
in
this
agreement,
I
will
be
indebted
to
the
DOI.
CONTINUEDEMPLOYEE
LOAN
REPAYMENT
RESPONSIBILITIY
I understand
that
it
my
responsibility,
and
I
agree,
to make
loan
payments
on
the
portion
of
the
loan(
s)
that
continues
to
be
my
responsibility.
I
understand
that
my
failure
to continue
to
make
these
loan payments
violates
this
agreement
and
terminates
my
eligibilityfor
further
loan
repayment
benefits.
I
CERTIFY
THAT
I
HAVE
DISCUSSED
THE
CONDITIONS
OF
THESTUDENT
LOAN
REPAYMENT
PROGRAM
WITH
THE
HUMAN
RESOURCES
OFFICE
REPRESENTATIVE.
I
AGREE
THAT,
IF
I
FAIL
TO
COMPLETE
THE
PRESCRIBED
PERIOD
OF
SERVICE
UNDER
THE
TERMS
OF
THE
SERVICE
AGREEMENT,
WITH
THE
DEPARTMENT
OF
THE
INTERIOR,
I
WILL
REIMBURSE
THE
BUREAU)
FOR
THE
ENTIRE
AMOUNT
OF
ALL
LOAN
REPAYMENTS (
GROSS,
BEFORE
TAXES,
AND
DEDUCTIONS)
THE
BUREAU) MADE
ON
MY
BEHALF
UNDER
THIS
AGREEMENT.
EMPLOYEESIGNATURE
DATE
HRO
REPRESENTATIVE
SIGNATURE
DATE
This
information
is
subject
to
the
Privacy
Act
of
1974,
as
amended."
F-
11MUMMKIL601
TYPES
OF
STUDENT
LOANS
COVERED
UNDER
THE
HIGHER
EDUCATION
ACTAND
THE
PUBLIC
HEALTH
SERVICE
ACT
Student
Loan:
A
loan
made,
insured,
or
guaranteed
under
parts B,
D, or
E
of
Title
IV
of
the
Higher
Education
Act
of
1965 (
20
U.
S.
C.
1071
et
seq.,
1087a
et
seq., and
1087aa
et
seq.);
or
a
health
education
assistance
loan
made
or
insuredunder
Part
A
of
Title
VII
of
the
Public
Health
Service
Act (
42
U.
S.
C.
292 et
seq),
or
under
Part
E
of
Title
VIII
of
that
Act (
42
U.
S.
C.
297a
et
seq.).
Loanscovered
under
The
Higher
Education
Act
include
such
loans
as:
Federal
Stafford
Loans —
including
Federal subsidized,
Federal
unsubsidized,
direct
subsidized,
and
direct
unsubsidized
loans;
Federal
PLUS
Loans —
Federal
and
Direct
PLUSLoans;
Federal
Consolidation
Loans —
direct
subsidized,
direct
unsubsidized,
and
Federal
Consolidation
Loans;
Defense
Loans —
made
before
July
1,
1972;
National
Direct
Student
Loans —
made
between
July
1,
1972
and
July
1,
1987;
Federal
Perkins
Loans (
made
after
July
1,
1987)
William
D.
Ford
Direct
Loan
Program (
Direct
Loans)
Direct
Subsidized
Stafford
Loans
Direct
Unsubsidized
Stafford
Loans
Direct
PLUS
Loans
Direct
Subsidized
Consolidation
Loans
Direct
Unsubsidized
Consolidation
Loans
Loanscovered
under
the
Public
Health
Service
Act
include
loans
made
under:
Loans
for
Disadvantaged
Students (
LDS);
Primary
Care
Loans (
PCL);
The
Nursing
Student
Loan
Program (
NSL);
The
Health
Profession
Student
LoanProgram (
HPSL);
and
The
Health
Education
Assistance
Loan
Program (
HEAL).
Federal
Direct
Student
Loan:
The
U.
S.
Department
of
Education
is
the
lender
for
these
loans.
Direct
loans
include
Federal
Direct
PLUS
loans
and
Federal
Direct
Stafford
loans.
Federal
Family
Education
Loan
Program:
These
loans
are
insured
by
the Department
of
Education.
Loans
are
privately
issued
by
a
bank,
credit union,
or
other
lender that participates
in
the
Federal
Family
Education
Loan
Programs.
Subsidized
Loan:
The
U.
S.
Government
pays the
interest
on
the
loan
while
the
student
is
in
school,
during
the
6 -
month
grace
period,
and
during
periods
of
authorized deferment.
Unsubsidized
Loan:
The student is
responsible
for
paying
the
interest accrued
while
the
student
is
in
school,
during
the
6 -
month
grace
period,
and
during
authorized
periods
of
deferment.
