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GENERAL SERVICES ADMINISTRATION Washington, DC 20405

HRM 9537.1A September 9, 2016

GSA ORDER

SUBJECT: GSA Student Loan Repayment Plan

1. Purpose. This Order issues revised policy governing the GSA Student Loan Repayment Plan, which was established to repay employee student loans when necessary to recruit or retain highly qualified professional, technical or administrative personnel.

2. Background. GSA Administrator memorandum dated April 15, 2012, required that all requests to use the Student Loan Repayment Plan receive the joint approval of the Chief Human Capital Officer (CHCO) and Chief Financial Officer (CFO). This directive implements the revised delegation of authority, in addition to making revisions noted below.

3. Scope and applicability.

a. The authority applies to candidates outside of the federal government or current federal employees within GSA who participate in the Student Loan Repayment Program. Exceptions to the agency usage of the student loan repayment program are found in 5 CFR 537.

b. The Office of Inspector General (OIG) has independent personnel authority. See Section 6 of the Inspector General Act of 1978, (5 U.S.C. App. 3), as amended (Inspector General is authorized "to select, appoint, and employ, such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office of Inspector General") and GSA Order ADM P 5450.39D GSA Delegations of Authority Manual (Delegations Manual), Chapter 2, Part 1 ("the Inspector General has independent authority to formulate policies and make determinations concerning human capital issues within the [OIG] and GSA determinations/delegations do not limit that authority). Similarly, GSA specifically recognizes that the Inspector General has independent authority to formulate policies and make determinations concerning training, employee development, and career management.

HRM 9537.1A September 9, 2016 4. Cancellation. CPO 9537.1 CHGE 1. 5. Nature of revision. a. This Order revises the Student Loan Repayment Service Agreement to clarify action that may be taken in the absence of funding to continue or make additional payments under an existing agreement. b. Addresses the changes to the SLR service agreement. c. Removes the signature block from the service agreement that denoted approval/non-approval of an employee's request for waiver of reimbursement to GSA if the employee fails to fulfill the terms of the service agreement. In the event this is needed, it will be addressed and documented separately. d. Makes numerous non-substantive editorial changes. e. Establishes the requirement that a Standard Form (SF)-50 be generated to document each SLR payment. f. Incorporates changes effected through a previous Change Order into the current policy. 6. Implementation under this issuance must be carried out in accordance with applicable laws, regulations, and bargaining agreements 7. Signature.

/S/_________________________________ ANTONIA T. HARRIS Chief Human Capital Officer Office of Human Resources Management

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HRM 9537.1A GSA Student Loan Repayment Plan Table of Contents

Section

Page

Introduction ............................................................................................. 1

References.............................................................................................. 1

Definitions .............................................................................................. 1

General Provisions........................... ........................................................ 4

Service Agreements ................................................................................. 4

Loss of Eligibility for Loan Repayments Benefits ......................................... 4

Employee Reimbursement to GSA ............................................................. 5

Documentation and Record Keeping .......................................................... 6

Appendix A. Student Loan Repayment Service Agreement: Part 1: Terms of Agreement ............................................................................................. A-1 Appendix B. Loan Eligibility (Examples) ................................................... B-1

Appendix C. Procedures for Compliance and Processing of Student Loans...C-1 Appendix D. Student Loan Repayment Q & As ........................................... D-1

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1. Introduction. The General Services Administration (GSA) Student Loan Repayment Plan is authorized in accordance with 5 U.S.C. 2105 and 5379, and 5 CFR Part 537. Under the GSA Student Loan Repayment (SLR) Plan, certain federally insured student loans may be repaid by GSA through direct payments to the lending institution for an employee or candidate to recruit or retain highly qualified personnel. SLR is not an entitlement, but a recruitment and retention incentive that may be used when GSA would encounter difficulty recruiting, or it would not otherwise be possible to retain, a highly qualified employee with qualifications critical to GSA missions. In return for the SLR, the employee, or candidate upon employment, must sign a minimum of a three year service agreement. Student loan repayments cannot exceed $10,000 per calendar year or a total amount of $60,000 for any one individual. A SLR may be made for an initial lump-sum amount of $10,000, requiring a three year service agreement. GSA reserves the right to terminate the agreement early in the event that funding is no longer available after the first year. If payments are terminated under these conditions, the minimum period of service is three years, and must be completed or the SLR recipient will be obligated to reimburse GSA under established debt collection procedures. If three years of service have already been completed under this agreement, any remaining service obligation will be terminated at the end of the year in which funding expires.

2. References.

Title 5 United States Code, sections 2105 and 5379 Title 5, United States Code 5514 Title 31, United States Code 3713 Title 5, Code of Federal Regulations (CFR), Part 537, Title 5, Code of Federal Regulations (CFR), Part 550 Debt Collection Act of 1996

3. Definitions.

a. Approving Official. Chief Human Capital Officer (CHCO) and the Chief Financial Officer (CFO) have joint approval or delegated approval authority.

b. Employee. An "employee" who is eligible for student loan repayment:

(1) A current permanent employee who is appointed without a time limit;

(2) A temporary employee who is serving on an appointment leading to conversion to a term or permanent appointment;

(3) A term employee with at least 3 years left on his or her appointment; or

(4) An employee serving on an excepted appointment with conversion to a term,

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career, or career conditional appointment (including, but not limited to, a Presidential Management Fellow appointment, VRA appointment, Pathways Recent Graduates appointment, etc.).

c. Commuting area. The geographic area normally considered as one area for employment purposes. It includes any population center (or two or more neighboring ones) and the surrounding localities where people live and reasonably can be expected to travel back and forth daily to work.

d. Involuntarily separation. Refers to a separation initiated against an employee's will and without his or her consent, for reasons other than for cause or charges of misconduct or performance. An involuntary separation does not include a separation under 5 CFR 752 procedures or an equivalent procedure for reasons that involve misconduct on the part of the employee. The separation is involuntary if the employee's position description does not provide for such a reassignment. However, an employee's separation is not considered involuntary when a position description is amended to add a requirement for a written mobility agreement and the employee accepts one reassignment outside of the commuting area, but subsequently declines another such reassignment outside of the commuting area. An example of an involuntary separation, as defined here, might be one resulting from a reduction in force.

e. Recruitment candidate. A highly qualified non-federal candidate under consideration for recruitment to a GSA position.

f. Requesting Official. The selecting official or supervisor who is responsible for initiating a request to offer a SLR incentive.

g. Reviewing Official. The official responsible for funds control within an organizational entity. This is usually an official having authority for committing funds for the Recommending Official's organization.

h. Service agreement. A written agreement between GSA and an employee under which the employee (1) agrees to a specified period of employment with GSA, of not less than 3 years, in return for payment toward a qualifying federally insured student loan; and (2) agrees to reimburse GSA if he or she fails to complete the period of employment with the agency specified in the service agreement or comply with any other provisions of the service agreement. The agreement and payment of the Student Loan are subject to the availability of funds. The agreement will be reviewed and recertified annually to ensure that funds are available and to determine the status of the student loan(s). There is no entitlement to automatic renewal or continuation of payments. Please refer to the service agreement (Appendix A).

i. Service agreement offer. An offer of GSA employment to an individual who is not yet a federal employee that includes an offer to enter into a service agreement providing for SLR upon entry on duty for recruitment purposes. Such an offer must include

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providing a final service agreement for the candidate's review before entry on duty.

j. Service agreement renewal. The extension of a SLR service agreement based on additional or subsequent payment(s) toward a student loan. Any further repayments made after the first payment has been made will extend the initial service agreement by one additional year for each additional payment made. Each renewal:

(1) Will require recertification each year by the Requesting Official to determine continued need by the agency;

(2) Is subject to approval by the Reviewing and Approving Officials;

(3) Is for a period of one year;

(4) Carries with it all conditions of the original service agreement, and will specify the dollar amount of the repayment, the length of the service period required, the time of payment, and reimbursement requirements;

(5) May be renewed at the option of the Reviewing and Approving Officials to the extent that each annual payment does not exceed $10,000 and the total SLR payments do not exceed $60,000;

(6) Must be continuous with the initial SLR service period and/or any previous renewals.

k. Student loan. A loan made, insured, or guaranteed under parts B, D or E of Title IV of the Higher Education Act of l965; or a health education assistance loan made or insured under part A of Title VII of the Public Health Service Act or part E of Title VIII of that Act. (5 CFR 537.102). (See partial list of covered loans in Appendix B.)

l. Written justification.

(1) In the case of recruitment, a determination in writing submitted by the Requesting Official and approved by the Approving Official before entry on duty that without the SLR there would be difficulty in filling the position with a highly-qualified candidate; or

(2) In the case of retention, a determination that:

(a) There would be difficulty in retaining a highly qualified employee in the position;

(b) The employee's high qualifications or GSA's special need makes retention essential;

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(c) Without the SLR the employee would be likely to leave for employment outside of federal service; and

(d) The employee's departure would affect GSA's ability to carry out an activity or perform a function essential to GSA's mission, with a description to the extent of the effect.

4. General provisions. The amount of a student loan repayment (s) is subject to the following maximum limits:

a. $10,000 per employee per calendar year; and

b. A total of $60,000 per employee.

c. In determining the sum of the loan repayment(s), the Requesting, Reviewing, and Approving Officials should take into consideration the employee's value to GSA. Funds should not be committed for more than one year in advance, and requests and agreements should be reviewed annually to determine if conditions still exist and funding remains available to approve additional payments. All repayment amounts must be specified in the service agreement and any renewals [5 CFR 537.106(c)].

5. Service agreements. Before a loan repayment can be made, a written agreement must be signed by the employee agreeing to continue employment with GSA for a minimum of three years from the date of the first loan repayment.

6. Loss of eligibility for loan repayment benefits.

a. An employee who has received a loan repayment benefit will be ineligible for continued repayments, if the employee:

(1) Separates from GSA;

(2) Does not meet work performance levels, as reflected in a performance level of at a minimum of fully successful or its equivalent; or

(3) Violates any of the conditions of the service agreement, under original and any annual renewal periods;

b. For the purpose of applying paragraph (a) above, the employee's most recent rating of record must be at least at fully successful or equivalent;

c. GSA is not obligated to pay a SLR to an employee based on a SLR service agreement with another agency.

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7. Employee reimbursement to GSA.

a. Except as provided in paragraph (c) of this section, an employee who fails to complete the period of three years of employment (or more, exclusive of periods covered by any yearly renewal) or meet other terms as stipulated in the service agreement, will be indebted to GSA and must reimburse GSA for all SLRs made under the service agreement.

b. Failure to complete an initial service period of at least three years with GSA as stated in the service agreement occurs when the employee's employment with GSA terminates before the date specified in the service agreement (exclusive of renewals) because of either of the following circumstances:

(1) The employee is separated involuntarily because of misconduct or performance (as defined in 3d above);

(2) The employee leaves voluntarily;

c. Failure to complete the three-year employment period stated in the service agreement does not occur when the employee:

(1) Is involuntarily separated for reasons other than misconduct or performance (as defined in 3d, above); or

(2) Leaves GSA voluntarily to enter into employment with another federal agency, unless reimbursement to GSA under this condition is specified in the service agreement. Reimbursement is suggested in this situation unless arguments for waiver under subparagraph "f," below, are justified.

d. If an employee fails to reimburse GSA for the amount owed, a sum equal to the total amount paid will be recovered from the employee in accordance with the service agreement, paragraph 5 (above), and federal regulations for collection by offset from an indebted Government employee 5 U.S.C. 5514 and 5 CFR 550, or, if the individual is no longer a federal employee, the Debt Collection Act of 1996 governing debt collection. Reimbursement for any loan payments due GSA will be offset against any and all final salary related payments under 31 U.S. C. 3716.

e. Proposals to activate service agreement provisions allowing internal GSA position movement by an employee under a service agreement that is against the interest of the agreement's approving official may be reviewed by an official at a level that manages both gaining and losing organizations.

f. The Administrator, or his or her designee, may waive, in whole or in part, the right of recovery of an employee's debt if it is determined that recovery would be against equity and good conscience or against the public interest.

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