[Federal Register Volume 66, Number 52 (Friday, March 16, 2001)]
[Proposed Rules]
[Pages 15202-15203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6514]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 66, No. 52 / Friday, March 16, 2001 / 
Proposed Rules  

[[Page 15202]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 537

RIN 3206-AJ33


Repayment of Student Loans

AGENCY: Office of Personnel Management.

ACTION: Proposed rulemaking.

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SUMMARY: The Office of Personnel Management (OPM) is proposing 
regulations implementing the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001, to authorize Federal agencies 
to repay federally insured student loans when necessary to recruit or 
retain highly qualified personnel.

DATES: Written comments will be considered if received no later than 
May 15, 2001.

ADDRESSES: Send or deliver written comments to Richard A. Whitford, 
Acting Associate Director for Employment, Office of Personnel 
Management, Room 6500, 1900 E Street, NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Michael J. Mahoney, (202) 606-0830 
(FAX 202-606-0390).

SUPPLEMENTARY INFORMATION: The Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 amended 5 U.S.C. 5379. These 
amendments: Remove the restriction of this incentive to professional, 
technical, or administrative personnel; remove the limitation of this 
incentive to employees covered under General Schedule pay rates; 
broaden the types of loans which qualify under this part under the 
Higher Education Act of 1965 and the Public Health Service Act; require 
agencies to report annually to OPM on their use of this incentive; and 
require OPM to report annually to Congress on agencies' use of this 
incentive. These regulations reflect the amendments to 5 U.S.C. 5379.
    The repayment authority is one of several flexibilities made 
available to agencies when trying to attract individuals to the Federal 
service, or retain highly qualified personnel. The proposed regulations 
benefit both agencies and employees by expanding the flexibility of 
this existing incentive.
    The proposed regulations amend the following: Purpose, Definition 
of Employee, Definition of Student Loan, and Records and Reports.

Purpose

    This incentive may be used for employees in occupational series 
other than professional, technical, or administrative positions.

Definition of Employee

    This incentive may be used for employees covered under non-General 
Schedule (GS) pay rates, providing the non-GS employee meets the other 
criteria specified under this part.

Definition of Student Loan

    The proposed regulations expand the type of loans which qualify for 
this incentive to include: Subsidized, unsubsidized, Direct subsidized, 
and Direct unsubsidized Federal Stafford loans; Federal and Direct 
Federal Plus loans; Direct subsidized, Direct unsubsidized, and Federal 
Consolidation loans; Defense loans; National Direct Student Loans; 
Perkins Loans; Nursing Student Loan Program loans; Health Profession 
Student Loan Program loans; and Health Education Assistance Loan 
Program loans.

Records and Reports

    Agencies will be required to report annually to OPM on their use of 
this incentive. Agencies must report to OPM: The number of employees 
selected to receive this benefit; the job classifications of the 
employees selected to receive this benefit; and the cost for providing 
this benefit. Cost is the total amount of student loans repayments, not 
the administrative costs associated with administering the program.

E.O. 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it affects 
only certain Federal employees.

List of Subjects in 5 CFR Part 537

    Administrative practice and procedure, Government employees, Wages.

Office of Personnel Management.
Steven R. Cohen,
Acting Director.

    Accordingly, OPM proposes to amend part 537 to Title 5, Code of 
Federal Regulations, as follows:

PART 537--REPAYMENT OF STUDENT LOANS

    1. The authority citation for part 537 continues to read as 
follows:

    Authority: 5 U.S.C. 5379.

    2. Section 537.101 is revised to read as follows:


Sec. 537.101  Purpose.

    This part provides regulations to implement 5 U.S.C. 5379, as 
amended, which authorizes agencies to establish a program under which 
they may agree to repay (by direct payment on behalf of the employee) 
all or part of any outstanding federally insured student loan or loans 
previously taken out by a candidate to whom an offer of employment has 
been made, or a current employee of the agency, in order to recruit or 
retain highly qualified personnel.
    3. In Sec. 537.102 the definitions of Employee and Student loan are 
revised to read as follows:


Sec. 537.102  Definitions.

* * * * *
    Employee has the meaning given that term in 5 U.S.C. 2105, except 
it does not include an employee occupying a position which is excepted 
from the competitive service because of its confidential, policy-
determining, policy-making, or policy advocating character (i.e., 
employees serving under Schedule C appointments).
* * * * *
    Student loan means --
    (a) A loan made, insured, or guaranteed under parts B, D or E of 
title IV of the Higher Education Act of 1965; or
    (b) A health education assistance loan made or insured under part A 
of title VII of the Public Health Service Act, or under part E of title 
VIII of that Act.

[[Page 15203]]

    4. In Sec. 537.110 the section heading is revised, the existing 
text is designated as paragraph (a), and paragraph (b) is added to read 
as follows:


Sec. 537.110  Records and Reports.

* * * * *
    (b) Before January lst of each year, each agency must submit a 
written report to the Office of Personnel Management stating when the 
agency made student loan repayments on behalf of an employee during the 
previous fiscal year. Each report must include:
    (1) The number of employees selected to receive this benefit;
    (2) The job classifications of the employees selected to receive 
benefits under this part; and
    (3) The cost to the Federal government for providing benefits under 
this part.

[FR Doc. 01-6514 Filed 3-15-01; 8:45 am]
BILLING CODE 6325-38-P