Congress approves student loan forgiveness for public servants

[swsop]

By Brittany R. Ballenstedt

Legislation that would provide student loan forgiveness for federal employees after 10 years of service will now move to President Bush's desk.

The bill (H.R. 2669), sponsored by Rep. George Miller, D-Calif., was agreed upon by a conference committee Wednesday and cleared by the House and Senate on Friday. The president, who had threatened to veto the measure, has agreed to sign it.

The legislation includes language that would make it easier for college graduates who have high student loan debt to accept lower-paying government and nonprofit jobs. High debt has often been cited as a major impediment to the government's ability to attract top talent.

Full story: http://www.govexec.com/story_page.cfm?articleid=37961&dcn=e_gvet

[McDuck]

High debt has often been cited as a major impediment to the government's ability to attract top talent.


The reason that the government can't attract top talent is they did away with the retirement program (in 1982) that had attracted the quality people in the past. There is no retirement until you are at least 62 and there possibility of dying in poverty if you live long. IE, Your retirement payment lose the inflation percentage and the stock market could tank.

[BeaverState]

In my 20+ years of government service I would say that higher education is not highly valued. It is very low on the priority list for getting people promoted.

[pogo]

you got that right!!!!! there is not enough space in this forum to tell what really goes on.

[jayhawker]

The USPS is currently looking to hire some 200 Industrial Engineers - either off the street or straight out of college. Starting salary = $52k. What good is that IE degree going to do them on the workroom floor?

[ChemEng]

I wonder if this will be offered to only new hires or all public servants?

Ill have quite a bit of student loan debt for the next few years (and the next few years after that and after that).

That would be a great perk for me. I could also see it as an incentive for those with non-technical degrees to look at government work right out of college who end up with high loads of student loans but low probability of getting a job to make the payments.

[Scout333]

For those of us with college students- Tax Tips:)

Back-to-School Tax Breaks Help Teachers Pay
Classroom Costs; Aid Parents, Students With College Tuition
AL-2007-44, Sept. 11, 2007
BIRMINGHAM — With the new school year now under way, the Internal Revenue Service today reminded teachers, parents and students that saving receipts and keeping good records can help them take advantage of various education-related deductions and credits on their 2007 federal income tax return.
“Taxpayers who have done their homework won’t miss out on education-related tax deductions and credits that will lower their taxes,” said IRS spokesman Dan Boone. “Parents, students and teachers should all save receipts related to education expenses.”
Deductions reduce the income on which tax is figured. Credits reduce the overall tax. Though both can lower a person’s year-end tax bill or increase their refund, credits normally result in greater tax savings.
The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school.
Worth up to $250, the educator expense deduction is available, whether or not the educator itemizes their deductions on Schedule A. In tax-year 2005, teachers and educators deducted just over $893 million of these out-of-pocket classroom expenses. Under current law, this deduction is scheduled to expire at the end of this year.
Three key tax breaks—the tuition and fees deduction, the Hope credit and the lifetime learning credit—help parents and students pay for the cost of post-secondary education. All three are available, regardless of whether an eligible taxpayer itemizes their deductions. Under current law, the tuition and fees deduction is scheduled to expire at the end of this year, but the two credits remain in effect. In tax-year 2005, taxpayers claimed tuition and fees deductions totaling nearly $11 billion and education credits of almost $6.2 billion.
Normally, a taxpayer can claim tuition and required enrollment fees paid for their own and their dependent’s college education. A taxpayer cannot take both an education credit and the tuition and fees deduction for the same student in the same year. Income limits and other special rules apply to each of these provisions. Education credits are claimed on Form 8863, and the tuition and fees deduction for 2007 will be claimed on new Form 8917.
IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication also describes other education-related tax benefits, including qualified tuition programs (also known as 529 plans), the student loan interest deduction,**Coverdell education savings accounts and the education savings bond program.
Publication 970 is posted on IRS.gov or can be obtained, without charge, by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).

[Idaho Dave]

I believe all agencies have always had the option of paying off student loans as a recruitment tool. Check out this website.

http://www.opm.gov/oca/pay/StudentLoan/

The secret is convincing your agency to do it.

[Tempest]

In my 20+ years of government service I would say that higher education is not highly valued. It is very low on the priority list for getting people promoted.

:laugh: Yeah I think sometimes you just have to show up, breath and blink your eyes and your still the 'Toast of the Town'.

[Silverbird]

In my 20+ years of government service I would say that higher education is not highly valued. It is very low on the priority list for getting people promoted.
Actually, it does matter IF you are trying to get your foot in the door, at least here at Commerce if you don't have a Masters you're rather bummed because most of the jobs are GS 9/13.