SECTION 1.  PURPOSE

This subchapter adopts and supplements the Department of Commerce Student Loan Repayment Policy, and provides policy and guidance for NIST managers, employees, and human resources staff regarding the NIST Student Loan Repayment Program (SLRP).
 

SECTION 2.  REFERENCES

1. Title 5 United States Code (U.S.C.) 5379

2. Section 537 of Title 5 of the Code of Federal Regulations (5 CFR 537)

3. Department Administrative Order 202-957, Department of Commerce Repayment of Student Loan Policy  http://dms.osec.doc.gov/cgi-bin/doit.cgi?204:112:237a13b7a80c4ae27cb41401393580d9cf76a4e5a684f2bf158a7f91194471c2:247

4. For additional information, see the Office of Personnel Management, Student Loan, http://www.opm.gov/oca/pay/StudentLoan/
 

SECTION 3.  POLICY

1. The Department of Commerce (DOC) authorizes NIST to repay all or part of student loans in order to recruit from outside the federal sector or to retain highly qualified staff.  The SLRP is a discretionary tool available to managers, and is intended to aid in recruiting and retaining a high quality, diverse workforce.

2. A total amount up to $60,000 before taxes may be repaid on behalf of any eligible employee.  The payment cannot exceed $10,000 before taxes in a calendar year.  Payments are made directly to the educational or lending institution on an annual basis.  Reimbursements are not authorized for loan payments made prior to entering into a SLRP Service Agreement with NIST.

3.  The Department of Commerce has delegated authority to the NIST Director to approve the repayment of student loans as a recruitment or retention incentive. The authority is further delegated to the Operating Unit (OU) Directors.  The NIST Director retains the authority to require employees to reimburse the agency for loan payments made on their behalf when one or more of the conditions in Section 17 apply.
 

SECTION 4.  LABOR-MANAGEMENT RELATIONS

Prior to implementation of this program, all labor-management obligations must be satisfied.
 

SECTION 5.  DEFINITIONS

The following definitions are applicable:

1. "Student Loan" means a loan made, insured, or guaranteed under parts B, D, or E of Title IV of the Higher Education Act of 1965, as amended, covering major federal student financial aid programs.  An exhaustive list of eligible loans can be found on the OPM website www.opm.gov/oca/pay/studentloan/.

2.  "Service Agreement" means a written agreement between the NIST and an employee under which the employee agrees to a specified period of employment within NIST of not less than 3 years but no more than 15 years, depending upon the amount of the reimbursement by the NIST, in return for payments toward a student loan previously taken out by the employee.  The service agreement period begins on the effective date of the personnel action initiating the recruitment or retention incentive (See Attachment 1).
 

SECTION 6. COVERAGE

The SLRP incentive may be offered to fill a position or to retain an employee.  Student loans repayments may be approved for:

1. Permanent employees, except those on appointments of a confidential, policy-determining, policy-making, or policy advocating nature, e.g., employees on Schedule C appointments;

2. Temporary employees on appointments leading to conversion to permanent or term appointments;

3. Term employees with at least 3 years remaining on their appointments; or

4. Excepted service employees on appointments leading to conversion to career, career-conditional, or term appointments, e.g., Federal Career Intern or Presidential Management Fellows Programs
 

SECTION 7.  RESPONSIBILITIES

1.  The NIST Director:
a. Establishes NIST policy and direction for the SLRP;
b. Approves waivers of reimbursements due to failure to complete service requirements.

2.  Operating Unit (OU) Directors:
a. Ensure equitable and fair consideration of employees and applicants for the SLRP;
b. Determine whether funds are available for repayment of student loans;
c. Approve or disapprove participation in the SLRP; and
d. Forward copies of all approved and disapproved requests to the HRMD.

3.  Managers and supervisors:
a. Initiate requests for SLRP;
b. Provide appropriate documentation, including justification and service repayment agreement, to the Human Resources Management Division (HRMD). The justification must address each of the Criteria for Eligibility (see Section 8);
c. Ensure that funds are available to support the request; and
d. Complete and submit the annual review of multi-year student loan repayment, as applicable, at least 30 days in advance of the anniversary of the effective date of the SLRP (See Attachment 4).

4.  The Human Resources Management Division:
a. Provides guidance on implementing and administering the SLRP, advising managers, supervisors, and employees on the policies, procedures, requirements, objectives, and other aspects of this program;
b. Reviews requests for participation in the SLRP, and submits the requests to the OU Director for approval; and
c. Establishes and maintains necessary files for documentation of requests.

5.  Employees/applicants must:
a. Meet eligibility requirements;
b. Submit a copy of proof of enrollment in an accredited school, such as a transcript;
c. Submit a copy of the indebtedness of a Federally insured student loan;
d. Sign the “Release to Obtain Student Loan Information” (see Attachment 2); and
e. Fulfill all the requirements of the service agreement.
 

SECTION 8.  ELIGIBILITY CRITERIA

The criteria for authorizing repayments of loans are presented in the following table.
 

Recruitment

Retention

1. The candidate does not work for a Federal Agency; 2. The candidate possesses unusually high or unique qualifications that will aid in fulfilling the mission of the organization (i.e., how the education/experience is directly related to the position and needs of NIST); 3. The organization would encounter difficulty in filling the position with a highly qualified candidate if the SLRP incentive is not offered (i.e., the lack of success of recent recruitment efforts or the lack of availability of candidates in the labor market who can perform the same duties and responsibilities with minimal training or disruption of service to the public); 4. The candidate would not accept the position without receiving the SLRP incentive; 5. The candidate is not in default on repayment of the student loan; and 6.  The student loan was used to pay tuition and related expenses for coursework taken by the applicant.

1. The recipient is an employee of NIST; 2. The employee possesses unusually high or unique qualifications that will aid in fulfilling the mission of the organization; 3. In the absence of the SLRP benefit, the employee would leave for employment outside the Federal Government; 4. The departure of the employee would affect NIST's ability to carry out an activity or function deemed essential to the organization’s mission; 5. The employee has no performance or conduct actions pending; 6. The employee's most recent performance appraisal of record is Contributor or higher; 7. The employee is not in default on repayment of the student loan; and 8. The student loan was used to pay tuition and related expenses for coursework taken by the employee.

SECTION 9.  DETERMINING LOAN REPAYMENT AMOUNTS

The following factors shall be considered in determining the amount and timing of loan repayments:

1. The special skills the individual brings to NIST and how these skills enhance the ability of NIST to meet mission requirements;

2. The individual's current or potential value to the organization based on unusually high or unique qualifications;

3. Budgetary constraints; and

4. The likelihood that sufficient funds will be available in subsequent fiscal years if payment extends beyond the current fiscal year.
 

SECTION 10.  APPLICATION AND SELECTION PROCEDURES

1. Decisions to authorize a student loan repayment and the amount to be repaid are discretionary and made on a case-by-case basis. Budgetary constraints may have an impact on the consideration of requests under this program.  Selections for repayment shall be made on the basis of an organization’s need and not solely on the basis of an employee's desire to qualify for the program.

2. Requests for approval of a SLRP incentive must include a written justification addressing the criteria for eligibility in Section 8 above, and state the amount to be repaid.  The request also must identify other compensation options (such as recruitment bonuses) that have been considered, if any, and the reasons for their use or rejection.  The OU Director must approve requests for new hires before the candidate enters on duty.  No commitment on a repayment may be made until final approval is received.

3. Repayment of student loan requests must be initiated by the supervisor and submitted through the Division Chief and Chief Human Capital Officer to the OU Director for approval.

4. A copy of the justification and the service agreement will be filed on the left side of the employee's Official Personnel Folder.  If the amount of the repayment is increased from the original agreement, the agreement must be extended consistent with the Service Requirement Table.  In addition, the service agreement must be modified to reflect the increased benefit and be approved by the OU Director.
 

SECTION 11.  STUDENT LOAN REPAYMENT PROGRAM SERVICE AGREEMENT AND REQUIREMENT TABLE

1. The current or newly-appointed employee must sign a service agreement before NIST initiates repayment of a student loan.  There is a minimum three year service requirement if the repayment is $20,000 or less.  An employee must serve one additional year for each full or partial $10,000 increment NIST reimburses.  The following table illustrates the application of the service agreement formula.  This table does not reflect additional applicable taxes paid on the reimbursement amount or any other fees that may apply.

2. The additional service requirement is only applied when the reimbursement dollar threshold as shown in the Service Requirement Table is exceeded.  The Operating Units are not authorized to prorate the service requirement to correspond with amounts that do not meet the next higher $10,000 increment.

3. The service agreement period begins on the effective date of the personnel action initiating the recruitment or retention incentive, and ends when the service requirement is completed.

4. Each potential or current employee must give NIST authorization to verify his/her student loan information with the lending institution(s) by completing the “Release to Obtain Student Loan Information" (see Attachment 2).
 

SECTION 12.  RELATIONSHIP TO OTHER RECRUITMENT/RETENTION INCENTIVES

A SLRP incentive may be paid in addition to a retention allowance or a recruitment and relocation bonus.  The period of service required by a Recruitment or Relocation Bonus Service Agreement is separate from the period of service required under a SLRP Service Agreement.  However, the specified period of service in a SLRP Service Agreement may begin at the same time and run concurrently with other service agreements.
 

SECTION 13.  PROCEDURES FOR PAYMENT

The National Finance Center (NFC) will process a SLRP benefit as a lump sum payment sent directly to the educational or lending institution.  Payments are not authorized as reimbursements to an employee for payments made by the employee prior to entering into a SLRP Service Agreement.  The loan repayments will be treated as "supplemental wages" for payroll purposes and all applicable tax amounts will be withheld resulting in a “net” repayment amount.  The repayment amount will be reflected on the employee's Earnings and Leave Statement.  Neither NIST nor the NFC is responsible for late fees assessed by the holder of an employee's student loan.  NIST will, to the extent possible, ensure that the timing of payments to the lender coincides with the date the loan payment is due.
 

SECTION 14.  ANNUAL RECONSIDERATION OF PAYMENT AMOUNT

The Operating Unit Director must review individual employee payment amounts before the anniversary of the effective date of the action to determine whether the payment is still warranted and if budgetary considerations and funds availability allow continuance of payments.  A request to continue the SLRP benefit must be submitted by the employee’s supervisor through the Division Chief and the Chief Human Capital Officer to the OU Director for final approval (Attachment 4).  If applicable, the employee must provide the Human Resources office with official documentation from the lending institution showing the outstanding loan balance, current within the previous 30 days.  The documentation must be submitted at least 30 days prior to the anniversary date (Attachment 3).

If an employee is on an approved Agreement and moves to a position in a different Operating Unit within NIST before the terms of the Service Agreement are met, the losing organization may discuss with the gaining organization pro-rated reimbursement of funds.
 

SECTION 15.  LOSS OF ELIGIBILITY FOR LOAN REPAYMENT BENEFITS

An employee receiving SLRP benefits will be ineligible for continued benefits if the employee:

1. separates voluntarily or involuntarily from NIST;

2. does not maintain a performance rating of "Contributor" or higher;

3. defaults on repayment of the student loan (i.e., the outstanding balances that remain are the employee’s financial responsibility); or

4. fails to comply with any of the conditions of the service agreement.
 

SECTION 16.  SEPARATION OF AN EMPLOYEE RECEIVING THE STUDENT LOAN REPAYMENT PROGRAM BENEFIT

The Operating Unit Director must notify the HRMD of the impending separation date of an employee receiving the SLRP benefit and whether the employee has fulfilled the terms of the service agreement.  If the employee has not fulfilled the terms of the agreement, the Operating Unit must indicate whether or not it will seek a waiver of reimbursement.  Only the NIST Director may approve a waiver of repayment request.
 

SECTION 17.  EMPLOYEE INDEBTEDNESS TO NIST/DOC

An employee who has not fulfilled a service agreement is deemed indebted to DOC/NIST for the amount of student loan repayments made on the employee's behalf up until the time of separation if the employee:

1. is separated from NIST involuntarily on account of misconduct or poor performance;

2. leaves NIST voluntarily; or

3. leaves on disability retirement or due to a disabling condition.
 

SECTION 18.  WAIVER OF EMPLOYEE INDEBTEDNESS

The NIST Director may waive, in whole or in part, the right to recover an employee's debt incurred for failure to meet a requirement of the service agreement if it is determined recovery would be against equity and good conscience or against the public interest.

1. If the employee requests a waiver, the Operating Unit must notify the HRMD immediately.  The request will include the amount to be waived and a brief statement indicating why requiring reimbursement would be against equity and good conscience or against the public interest.  The waive request is forwarded through the supervisor, the Division Chief, OU Director, and the CHCO to the Director NIST for approval or disapproval.  The HRMD will receive notification of the Director's decision and will then notify the Operating Unit and the employee and take appropriate action.

2.  The Operating Unit may initiate a waiver on the employee’s behalf in cases of death of the employee or a Reduction-In-Force separation.  Granting a waiver upon the death of an employee is for the sole intent to alleviate the financial burden on the deceased’s estate.  The request must be submitted through the CHCO to the NIST Director and will include the amount to be waived and a brief statement indicating why requiring reimbursement would be against equity and good conscience or against the public interest.  The NIST Director has final approval authority.

3.  The request shall contain a copy of the Repayment Service Agreement, the bill presented by the agency to the current employee or former employee or verification of the exact amount of debt where a bill has not been generated, and a narrative explaining why recovery by the agency would be against equity and good conscience or against the public interest.  Collection of the debt will be suspended upon receipt of the written request and pending the decision on the waiver request.
 

SECTION 19.  RECORDS AND DOCUMENTATION REQUIREMENTS

The Service Agreement and all other documentation must be maintained in the Official Personnel Folder of each employee receiving the repayment benefit for a period of three years after the date of the final payment to the educational or lending institution.  If an employee leaves the organization within the period of the SLRP service agreement, the retention period is extended indefinitely pending collection of any outstanding debt.
 

SECTION 20.  PROGRAM OVERSIGHT

The Chief Human Capital Officer, or designee, will regularly monitor and review the use of the SLRP to ensure that the amount of payments and the accompanying justifications meet the criteria established in this Order.  The Human Resources Office will submit an annual report to the Department by December 1st each year (DAO 202-957).  DOC will conduct additional oversight as necessary to ensure conformance to Departmental policy.
 

SECTION 21.  ATTACHMENTS

Attachment 1 - STUDENT LOAN REPAYMENT SERVICE AGREEMENT, DEPARTMENT OF COMMERCE, NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY
Attachment 2 - RELEASE TO OBTAIN STUDENT LOAN INFORMATION
Attachment 3 - REQUEST FOR STUDENT LOAN REPAYMENT CHECKLIST FOR MANAGERS AND ADDITIONAL INFORMATION
Attachment 4 - ANNUAL REVIEW OF MULTI-YEAR STUDENT LOAN REPAYMENT