3 FAM 3820
Student Loan Repayment program (SLRP)
(CT:PER-1198; 07-31-2024)
(Office of Origin: GTM/ER/WLD)
3 FAM 3821 Authorities and definitions
3 FAM 3821.1 Authorities
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The authorities for the Student Loan Repayment Program are found in:
(1) 5 CFR Part 537; and
(2) 5 U.S.C. 5379.
3 FAM 3821.2 Definitions
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. The definitions for terms used in this subchapter are based on OPM regulations and procedures issued to implement this program.
b. For purposes of 3 FAM 3820 and 3 FAH-1 H-3820, “career-type employees” means Civil Service and Foreign Service employees, other than Consular Fellows, who qualify for the SLRP incentive during an annual announced “open season” application period by virtue of their prequalifying Civil Service position or prequalifying overseas posting. See 3 FAM 3823, paragraph a, for more information.
c. For purposes of 3 FAM 3820 and 3 FAH-1 H-3820, the terms “Consular Fellows” or “Consular Fellow employees” refer to Foreign Service employees serving in entry-level consular positions on time-limited noncareer appointments (LNAs) who applied for the Consular Fellows Program on or after May 3, 2016, and were approved for the SLRP incentive benefit prior to entry on duty (EOD) as a Consular Fellow. See 3 FAM 3823, paragraph b, and SLRP Policy and Procedures, Appendix B-2 for more information on Consular Fellows.
d. The term “employee” in 3 FAM 3820 and 3 FAH-1 H-3820 refers generally to both career-type employees and Consular Fellow employees.
3 FAM 3822 Purpose
(CT:PER-1079; 02-02-2022)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The Student Loan Repayment Program (SLRP) is a recruitment and retention tool used by the Department to attract and retain Civil Service and Foreign Service employees applying for or encumbering specific positions. The program enables employees to reduce student loan debt incurred to support courses of study already completed by the employee or completed by the child of the employee in the case of Parent PLUS loans, with payments made directly to an employee’s lender or loan servicing organization.
3 FAM 3823 Scope and Eligibility Criteria
(CT:PER-1198; 07-31-2024)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. In order to qualify, career-type Civil Service and Foreign Service employees must:
(1) Occupy a pre-qualifying position or have arrived at a pre-qualifying post during the annual open season application period. See SLRP Policy and Procedures, Appendices A and B-1;
(2) Have certain outstanding loans authorized by Title IV of the Higher Education Act of 1965 or Title VII of the Public Health Service Act (see 3 FAM 3823.3) with combined balances of $5,000 or greater;
(3) Have no conduct or performance issues that would otherwise preclude them from eligibility (see 3 FAM 3825.2) under this program; and
(4) Commit to at least 3 years of service with the Department via a service agreement, as described in 3 FAM 3824.
b. In order to qualify, Foreign Service Consular Fellows must:
(1) Occupy a time-limited noncareer appointment (LNA) of 60 months as a Consular Fellow;
(2) Have applied for a Consular Fellow position via a vacancy announcement, the Gateway application process, or positively responded to a Consular Fellow Letter of Interest on or after May 3, 2016;
(3) Not have been employed in the Federal service at the time of application for a Consular Fellow position;
(4) Have been approved for the SLRP incentive benefit prior to entry on duty (EOD) as a Consular Fellow;
(5) Have outstanding loans authorized by Title IV of the Higher Education Act of 1965 or Title VII of the Public Health Service Act (see 3 FAM 3823.3) with combined balances of $5,000 or greater;
(6) Have no performance issues that would preclude them from continued eligibility (see 3 FAM 3825.2) under this program; and
(7) Commit to at least 3 years of service with the Department via a service agreement, as described in 3 FAM 3824.
c. All employees must make independent payments toward their outstanding Federal student loan debt in the amount that would otherwise be due without the SLRP incentive. The SLRP lump-sum incentive is intended as a supplement to, not a substitute for, each employee’s student loan debt payment. The Department will not pay any late fees or penalties. Employees who are in default of the loan(s) or fail to make independent payments will not be eligible to participate in this program for 2 years from the date of default or the date on which the employee failed to make independent payments. Loans in deferral or forbearance status will not be eligible.
3 FAM 3823.1 Prequalifying Positions for Civil Service Employees
(CT:PER-995; 06-01-2020)
(State Only)
(Applies to Civil Service Employees Only)
Employees should refer to SLRP Policy and Procedures, Appendices A and C, which can be found on the GTM/ER website. Specific occupational series listed in Appendix A are prequalifying Civil Service positions. Each occupational series code is subject to annual review to determine if an eligibility criterion still applies. The factors considered in designating prequalifying positions are set forth in Appendix C.
3 FAM 3823.2 Prequalifying Positions for Foreign Service Employees
(CT: PER-1193; 06-17-2024)
(State Only)
(Applies to Foreign Service Employees Only)
a. Eligible Foreign Service employees, other than Consular Fellows, should refer to SLRP Policy and Procedures, Appendices B-1 and C, which can be found on the GTM/ER website. Appendix C defines mission-critical occupations and qualifying FS posts and assignments. Appendix B-1 lists all eligible overseas posts and domestic assignments for the upcoming open season application period as of the date of release and is updated annually prior to the start of the annual open season application period. Posts may be added to or eliminated from this list (including during an open season application period) as post differential rates and/or danger-pay post designations change. Employees must have actually arrived at a designated overseas post or domestic assignment no later than the last day of the announced annual open season application period to be eligible for this program.
b. Eligible Consular Fellows who meet all criteria set forth in 3 FAM 3823, paragraph b, including but not limited to having been approved for the SLRP recruitment incentive prior to their entry-on-duty (EOD) date, should refer to SLRP Policy and Procedures, Appendices B-2 and C, which can be found on the GTM/ER website. Appendix C defines mission-critical occupations. Appendix B-2 describes the recruitment challenges faced by the Department in supporting consular operations at diplomatic missions abroad and outlines the SLRP eligibility criteria for Consular Fellows.
3 FAM 3823.3 Loans that Qualify for Repayment
(CT:PER-1079; 02-02-2022)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. The repayment authority is limited to student loans authorized by Title IV of the Higher Education Act of 1965 (Higher Education Act) or Title VII of the Public Health Service Act. These are federally insured loans made by educational institutions, or banks and/or other private lenders. The following student loan programs are covered by the Higher Education Act and qualify for the Department's Student Loan Repayment Program:
(1) Stafford loans (subsidized and unsubsidized);
(2) Supplemental loans;
(3) Federal consolidation loans;
(4) Grad PLUS loans;
(5) Parent PLUS loans;
(6) Defense loans (made before July 1, 1972);
(7) National direct student loans (made between 7/1/72 and 7/1/87);
(8) William D. Ford direct student loans; and
(9) Perkins loans (made after July 1, 1987).
b. The following student loan programs are covered by the Public Health Service Act and qualify for the Department’s Student Loan Repayment Program:
(1) The Nursing Student Loan Program;
(2) The Health Profession Student Loan Program; and
(3) The Health Education Assistance Loan Program.
3 FAM 3823.3-1 Limitations on Loan Repayment Amounts
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The Department may repay up to a maximum of $10,000 per employee per calendar year and up to a lifetime maximum of $60,000 per employee. The Department may determine that no incentive, or less than the annual maximum, will be paid in any year. That determination will be based on funding resources, and recruiting and/or retention needs.
3 FAM 3823.3-2 Additional Loan Eligibility, Responsibility and Processing Requirements
(CT:PER-1161; 10-25-2023)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. Qualifying loans (see 3 FAM 3823.3) must:
(1) Be in the name of the employee;
(2) Have been used to support an employee’s or an employee’s child(ren)’s completed degree;
(3) Be current and not in default, forbearance or deferment status;
(4) Have an outstanding cumulative balance of at least $5,000; and
(5) Meet other requirements as detailed in the program’s policy and procedures, the application materials, related guidance on GTM/ER’s website, and as announced by GTM/ER.
b. Repayments can only be made on behalf of the employee to the educational or lending institution, or to the loan servicing organization. Repayments are not authorized for reimbursement directly to the employee.
c. Repayments are subject to normal withholdings to include Federal and State taxes, Old Age, Survivors, and Disability Insurance, and Medicare. Withholdings will be deducted or applied at the time any loan repayment is made. Form W-2, Wage and Tax Statement, will reflect the amount of any loan repayment made and all deductions withheld. See 3 FAH-1 H-3823 for further clarification.
d. Loans and outstanding loan balances remain the responsibility of the employee. The Department is not responsible for late fees assessed by the educational or lending institutions.
3 FAM 3824 Service Commitment
(CT:PER-1198; 07-31-2024)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. Employees for whom the Department pays a student loan repayment incentive must agree to work for the Department for a period of 3 years (see 5 U.S.C. 5379(c)(1) and 5 CFR 537.107). Department policy allows employees to receive 2 consecutive years of payments without an extension of the 3-year commitment. However, in order to receive a third (usually consecutive) year of incentives, the employee must agree to and sign a new Service Agreement to continue employment with the Department for 1 additional year and must have at least 1 additional year remaining on their appointment (in the case of employees on time-limited appointments).
b. In most instances, employees who continue to qualify each year will have a service commitment of 1 year longer than the number of years they benefit from the repayments. Consular Fellows serving on 60-month limited noncareer appointments (LNAs) may qualify for up to 3 years of SLRP incentives, as long as the final date of their appointment allows for compliance with the service commitment requirements set forth in 3 FAM 3824, paragraph a.
c. The Department considers agreements executed after the initial 3-year agreement to be a separate service commitment period for purposes of reimbursement.
3 FAM 3824.1 Service Agreement
(CT:PER-1198; 07-31-2024)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. The service agreement is required for all SLRP participants.
b. Civil Service or Foreign Service applicants, other than Consular Fellows, enter into the service agreement online during the open season application period. For Civil Service or Foreign Service applicants other than Consular Fellows, the effective service agreement date will be the last day of the open season application period in which the employee qualifies for the program. The initial service commitment period will begin on the effective date of the service agreement and conclude 3 years thereafter. The service commitment periods in connection with any future service agreements entered into pursuant to 3 FAM 3824, paragraph a, will also begin effective the last day of the open season application period in which the employee qualified for the program, where the employee is no longer covered by a prior service agreement.
c. Eligible Consular Fellows who have been approved for the SLRP recruitment incentive prior to entry on duty (EOD) must enter into the service agreement during the online SLRP incentive verification process, whereby they will also verify certain factual information relating to their loans. Consular Fellows will complete the online verification process shortly after their entry on duty. The effective date of the service agreement, and the first day of the Consular Fellow’s 3-year service commitment, will be the date on which the Consular Fellow completes this online verification process and electronically signs the service agreement. Pursuant to 3 FAM 3824, paragraph a, in order to receive a third year of SLRP incentives, a Consular Fellow must enter into a new service agreement for 1 additional year of service. The service commitment period in connection with such an additional service agreement will begin as of the date on which any subsequent service agreement is electronically signed by the employee, so long as this date is after the conclusion of the employee’s initial 3-year service commitment and so long as the Consular Fellow has sufficient time remaining on their appointment to meet this service commitment.
d. Employees also agree:
(1) That the Department may verify the status or other details of an employee's loan(s);
(2) That the employee will continue to make regularly scheduled independent payments on their qualifying federally insured student loans;
(3) That the employee will maintain records of payment history for the entire length of their service commitment to ensure compliance with the student loan repayment program;
(4) To notify the Bureau of Global Talent Management, Office of Employee Relations, Work Life Division, of any intention to separate from the Department of State for any reason, voluntarily resign or retire from the Department of State, transfer from the Department of State to another agency or be in leave without pay (LWOP) or other unpaid status while subject to the service commitment;
(5) To repay the Department the full amount of any student loan repayment incentive received if the employee leaves the Department before fulfilling the service commitment, even if the employee transfers to another Federal agency, except where the employee is involuntarily separated for reasons other than misconduct, unacceptable performance, or a negative suitability determination;
(6) That the employee will continue to be responsible for the loan obligation, for making payments toward that obligation, and for any income tax obligation resulting from the student loan repayments made by the Department; and
(7) That the Department is not responsible for late fees assessed by the lender.
e. There may be additional terms and conditions in the service agreement, which are subject to change annually. Each employee is responsible for reviewing the terms and conditions in their service agreement before signing the agreement, and for complying with such terms and conditions.
3 FAM 3824.2 Impact of Leave without Pay (LWOP) or Other Unpaid Status
(CT:PER-835; 03-22-2017)
(State only)
(Applies to Foreign Service and Civil Service Employees)
The service commitment period will be extended when an employee is in an unpaid status (including LWOP). Employees are required to notify the Office of Employee Relations, Work Life Division, when he or she is on or anticipates being in an unpaid status (including LWOP). An employee’s service commitment will be extended by the number of days in a nonpay status (including LWOP), except for absences because of uniformed service or compensable injury. As provided by 5 CFR 353.107, absence because of uniformed service or compensable injury is considered creditable toward the required service period upon reemployment.
3 FAM 3824.3 Relationship to Other Recruitment or Retention Incentives
(CT:PER-835; 03-22-2017)
(State only)
(Applies to Foreign Service and Civil Service Employees)
a. The Department may pay a student loan repayment incentive as a recruitment or retention incentive in addition to a nonstudent loan repayment retention incentive/allowance, recruitment incentive/allowance, and/or relocation bonus. The period of service, and any other related terms and conditions, required by a Recruitment Bonus Service Agreement, Retention Bonus Service Agreement, or Relocation Bonus Service Agreement, is separate and distinct from the period of service, and any other related terms and conditions, required under a Student Loan Repayment Service Agreement.
b. The period of service required by participation in the Student Loan Repayment Program may run concurrently with other service agreements.
3 FAM 3824.4 Noncompliance with Terms of a Service Agreement
(CT:PER-1198; 07-31-2024)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. Civil Service and Foreign Service employees, including Consular Fellows, are required to repay SLRP funds paid on their behalf if they voluntarily resign or retire from the Department, transfer to another federal agency, or are involuntarily separated for misconduct, unacceptable performance, or a negative suitability determination, before completing the agreed-upon period of service (see paragraph 14 in the Service Agreement, and 5 CFR 537.109).
b. The Department considers subsequent service agreements executed after an employee’s initial service agreement under which the employee has agreed to a 3-year service commitment to be a separate and subsequent service commitment period.
c. The Office of Employee Relations, Work Life Division (GTM/ER/WLD), will notify the employee in writing of their specific repayment obligation upon notice that the employee will or has voluntarily resigned, retired, or transferred to another agency. In most instances, the net indebtedness will be the total of all funds obligated less Old Age, Survivors, and Disability Insurance and Medicare contributions.
d. When the indebtedness is repaid, the Bureau of the Comptroller and Global Financial Services will provide the employee with a letter of credit that the employee may be able to use to claim a Federal tax deduction or credit in the current tax year.
e. Waiver of repayment authority:
(1) The Office of the Comptroller may waive, in whole or in part, a right of recovery of a SLRP debt resulting from a failure to complete a service agreement if it is shown that recovery would be against equity and good conscience or against the public interest. See 4 FAM 494; and
(2) Any collection of debt will be suspended pending the decision on the waiver request.
3 FAM 3825 Ineligibility
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
Employees are not eligible for the student loan repayment program if they encumber one of the appointment types outlined in 3 FAM 3825.1. Employees are subject to certain specific performance and/or conduct conditions as described in this subchapter. Employees in leave without pay or another unpaid status at the time of application are generally ineligible for the SLRP incentive as described in 3 FAM 3825.3.
3 FAM 3825.1 Certain Noncareer Type Appointments
(CT:PER-1143; 07-12-2023)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
Employees in certain noncareer type appointments, including, but not limited to the following, are not eligible to participate in the SLRP program:
(1) Temporary employees serving on agency-unique Schedule B appointments whose terms are legislatively limited to no more than 4 years;
(2) Political appointees, including Schedule C employees;
(3) Detailees from other agencies;
(4) Consular adjudicators on limited noncareer appointments other than Consular Fellows as described in 3 FAM 3823, paragraph b;
(5) Eligible family members serving on family member appointments.
3 FAM 3825.2 Impact of Performance and Conduct Issues on Eligibility
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. Civil Service and Foreign Service employees other than Consular Fellows will not be eligible to participate if any of the following conditions exist:
(1) A Civil Service employee who has received less than a fully successful rating on the most recent performance evaluation report;
(2) A Foreign Service employee who within the past 2 years has been referred to the Performance Standards Board directly, not as a result of the automatic referral of two low rankings in 5 years;
(3) A Civil Service employee who has been issued a decision letter sustaining disciplinary action for a suspension of greater than 5 calendar days within the preceding consecutive 2 years. The employee will not be eligible to receive loan repayments until 2 years after the end of the suspension of more than 5 calendar days (see 3 FAM 4500);
(4) A Foreign Service employee who has been issued a decision sustaining disciplinary action for a suspension of greater than 5 days within the preceding consecutive 2 years. The employee will not be eligible to receive loan repayments until 2 years after the end of the suspension of more than 5 working days (see 3 FAM 4300); and
(5) Employees under a Last Chance Agreement or a Statement of Understanding are rendered ineligible during the enforcement period.
b. Consular Fellows will not be eligible for continued SLRP incentives if the Consular Fellow employee has received less than a fully satisfactory rating on the most recent performance evaluation report.
3 FAM 3825.3 Leave without Pay (LWOP) or Other Unpaid Status
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
Employees will not be eligible to apply when in an unpaid status (including LWOP status), even if otherwise qualified, with the exception of employees in an unpaid status because of uniformed service or compensable injury.
3 FAM 3826 The Application Process
(CT:PER-603; 05-20-2008)
(State only)
(Applies to Foreign Service and Civil Service Employees)
Eligible employees must apply or re-apply every year. Please refer to 3 FAH-1 H-3821.2 for details on the application process.
3 FAM 3827 SLRP Incentive PAYMENT details
(CT:PER-835; 03-22-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. The SLRP incentive is paid in one annual lump sum payment made directly to the employee’s designated lender(s) or loan servicer(s).
b. The amount of the SLRP incentive is subject to legislative limits. See 3 FAM 3823.3-1.
c. The maximum gross amount of the annual SLRP incentive for each eligible Civil Service or Foreign Service employee (other than Consular Fellows) is dependent upon funding availability and the number of qualified employees approved during the respective open season eligibility period. All qualifying Civil Service and Foreign Service employees other than Consular Fellows will be entitled to the same lump-sum payment amount unless the amount of the incentive exceeds an employee’s outstanding qualifying loan balance or composite loan balance, or would exceed the statutory maximum annual or lifetime SLRP incentive amount available to any employee.
d. The maximum gross amount of the annual SLRP incentive for Foreign Service Consular Fellows is dependent on funding availability and will be announced periodically. All qualifying Consular Fellows will be entitled to the same lump-sum payment amount unless the amount of the incentive exceeds an employee’s outstanding qualifying loan balance or composite loan balance, or would exceed the statutory annual or maximum lifetime SLRP incentive amount available to any employee.
e. If the outstanding qualifying loan balance is equal to or less than the amount of the announced lump-sum payment the Department will consider the loan to be paid off for purposes of this program and any further participation in the program.
3 FAM 3828 and 3829 UNASSIGNED