Conditions and procedures for providing student loan repayment benefits.

CFR · 2024-01-01 · US · Title 5

(a) (2) The student loan to be repaid must be a qualifying student loan as set forth in paragraph (b) of this section. (3) The agency must document in writing each approval of student loan repayment benefits. An authorized agency official must review and approve each written determination. The written determination must show the employee (or job candidate) meets the criteria specified in § 537.105. (4) An authorized agency official must approve student loan repayment benefits in connection with a recruitment action before the job candidate actually enters on duty in the position for which he or she was recruited. The agency and the job candidate may sign the service agreement consistent with § 537.107 before the job candidate begins serving in the position, but the agency may not begin making loan payments until the job candidate begins serving in the position. (5) Student loan repayment benefits are in addition to basic pay and any other form of compensation otherwise payable to the employee involved. (6) Appropriate tax withholdings must be deducted or applied at the time any payment is made. Since these tax implications could create a financial hardship for the recipient of the student loan repayment benefit, agencies may lessen the impact of tax withholdings on an employee's paycheck in one of the following ways: (i) Make smaller payments at periodic intervals throughout the year, rather than issue payments under this part in one lump sum; (ii) Allow the employee to write

official document · source cfr-2024 · id 5:§ 537.106