2024-31659NoticeWallet

Feds Create Form So Government Workers Can Escape Student Debt

Published Date: 1/8/2025

Notice

Summary

The General Services Administration (GSA) is updating the Student Loan Repayment Application and Service Agreement (GSA Form 5015) to make it easier for federal employees to apply for student loan help. If you’re a federal worker with student loans, this update affects you and aims to streamline the process. Comments on the changes are open until March 10, 2025, so now’s the time to speak up!

Analyzed Economic Effects

7 provisions identified: 1 benefits, 6 costs, 0 mixed.

GSA adds one-stop application form

GSA proposes a new standardized form (GSA Form 5015) called the Student Loan Repayment Application and Service Agreement to collect loan details and the required agency signatures in one place. The change is intended to streamline the process that previously required custom memoranda and routing, and GSA estimates up to 25 responses per year for this form.

Repayments count as taxable wages

When an agency pays student loan debt to a lender, those payments are treated as taxable wages and are subject to income tax withholding and Social Security and Medicare payroll taxes. This tax treatment applies to the student loan repayment benefit described under 5 U.S.C. 5379.

Per-year and lifetime benefit limits

By law, each candidate or employee is limited to up to $10,000 in student loan repayment benefits per calendar year and a lifetime cap of $60,000 across federal agencies. Only loans made, insured, or guaranteed under parts B, D, or E of the Higher Education Act (commonly Federal Direct Loans) qualify.

Required multi-year service agreement

Anyone who receives these student loan repayment benefits must sign a service agreement to remain with the Federal Government for at least 3 years; if payments occur over multiple years, the agreement can extend up to 6 years. The service agreement is included on the proposed GSA Form 5015.

Certain appointment types are ineligible

Certain federal appointment types are not eligible for the student loan repayment benefit: non-career temporary appointments limited to 1 year or less, non-career term appointments of less than 3 years, and Schedule C political appointments in the Title 5 excepted service. Eligible candidates are generally career or other qualifying appointments.

Time burden to complete form

GSA estimates 25 respondents per year, one response per respondent, and 8 hours per response for the proposed form, for a total estimated burden of 200 hours annually. Public comments are requested on whether this burden estimate is accurate and ways to reduce it.

Form goes into Official Personnel File

If a student loan repayment application is approved and processed, the completed GSA Form 5015 will be placed in the employee's Official Personnel File (OPF) as an agency temporary document in accordance with OPM recordkeeping guidance. The form includes the service agreement and signatures.

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Key Dates

Published Date
1/8/2025

Department and Agencies

Department
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