[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[House]
[Pages 25862-25863]
[From the U.S. Government Publishing Office, www.gpo.gov]




              FEDERAL EMPLOYEE STUDENT LOAN ASSISTANCE ACT

  Mrs. JO ANN DAVIS of Virginia. 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
  The Clerk read as follows:

                                 S. 926

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Employee Student 
     Loan Assistance Act''.

     SEC. 2. STUDENT LOAN REPAYMENTS.

       Section 5379(b)(2) of title 5, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``$6,000'' and 
     inserting ``$10,000''; and
       (2) in subparagraph (B), by striking ``$40,000'' and 
     inserting ``$60,000''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Virginia (Mrs. Jo Ann Davis) and the gentleman from Illinois (Mr. 
Davis) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Virginia (Mrs. Jo Ann 
Davis).


                             General Leave

  Mrs. JO ANN DAVIS of Virginia. 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.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Virginia?
  There was no objection.
  Mrs. JO ANN DAVIS of Virginia. 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

[[Page 25863]]

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. DAVIS of Illinois. 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. CUMMINGS. 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. TOM DAVIS of Virginia. 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.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield back the balance of my 
time.
  Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I have no further 
requests for time, and I yield back the balance of my time.

                              {time}  1530

  The SPEAKER pro tempore (Mr. Schrock). The question is on the motion 
offered by the gentlewoman from Virginia (Mrs. Jo Ann Davis) that the 
House suspend the rules and pass the Senate bill, S. 926.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill was passed.
  A motion to reconsider was laid on the table.

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