Federal Workers Get Millions in Student Loan Relief

Paul Singer:

The perk was designed to make government jobs more appealing to those who might earn more in the private sector. But a debate is brewing about whether it's due for the chopping block.

Congress may let student loan interest rates double July 1, but some federal workers and congressional staff likely are protected from the impact by a taxpayer-funded benefit that provided more than $20 million last year for them to pay down their college debts.

Congress created the benefit more than 10 years ago to make government jobs more appealing to job candidates who could get higher-paying jobs in the private sector. Meanwhile, a 2007 law that cut student loan interest rates in half will expire July 1, and Congress has been unable to reach a deal to extend it.

A review of congressional spending records by USA TODAY and the non-profit Sunlight Foundation, a watchdog group, showed that the House of Representatives spent almost $15 million last year to pay down staffers' student loans, while the Senate spent almost $6 million. Members of Congress are not eligible for the program.

Federal agencies -- which provide more detailed information -- spent about $72 million in 2011, the last year for which data are available, to pay down student loans for 10,134 federal workers.

Posted by Jim Zellmer at June 23, 2013 1:04 AM
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