Student Loan Repayment Program Parent PLUS Loan

Eligible employees may be approved for a student loan payment of up to $10,000 ($5,250 is not taxed) per calendar year, paid directly to their loan provider, once per 12-month period, with a maximum of $60,000 paid per employee lifecycle. This program applies to federally insured student loans secured by an employee in the employee’s name for the purpose of their own education or their dependent undergraduate child’s education. Qualifying federally insured student loans are listed under 5 U.S.C. 5379(a)(1)(B) and 5 CFR 537.102, which includes Direct PLUS Loans. A Direct PLUS Loan is commonly referred to as a Parent PLUS Loan when made to a parent borrower who uses the loan to pay for their child’s education.

Eligible employees who use a Parent PLUS Loan to pay for their child’s education may apply to have their loan repaid through this program. A completed degree for which the loan was incurred is required when the loan was used for the employee’s education but is not required when the loan was used for the employee’s dependent child’s education. A 3-year continued service agreement commitment is required for the first approved payment and an additional year is required for each subsequent approved payment disbursed to the employee’s loan provider.