Selected Agencies’ Use of the SLR Program Largely Depended on Their Unique Recruitment and Retention Needs

DOS, DOJ, and SEC used the SLR program more extensively and primarily  as a broad-based tool to retain more recently hired employees in specific  positions that require knowledge or skills critical to the agency. At this time, SSA, EEOC, and SBA were satisfied with their  efforts using other recruitment and retention tools and have not needed to  use the program. DOE uses the SLR program on a case-by-case basis determined by factors  such as labor market conditions that may affect recruiting efforts. Agency officials also said that since DOT views the  program as an expensive benefit and because the agency is now operating  with a lower budget, they will use the program sparingly. The agencies operating  their programs centrally used the SLR program primarily as a broad-based  retention tool, while the agencies running decentralized programs used  student loan repayments on a case-by-case basis. Agencies also varied the amount of the loan repayment, depending on the  results they needed to achieve. Agency Officials Suggested Ways to Make the SLR Program More Efficient and Effective, but Agencies Do Not Yet Have Processes to Assess the Long-term Impact of Their Programs

Officials from agencies using the program agreed that certain changes,  such as more automation of the application and loan repayment processes  and consolidation of some other program activities, would help to improve  the program’s administration. Agency Officials Also Suggested Ways to Make the Program More Effective

Agency officials identified several program characteristics they believe  impede the program. Agency Officials Say They Plan to Assess the Program’s Impact but Need More Data to Determine Long-term Effects

Agencies using the program had not yet established processes to measure  the extent to which the SLR program was helping them to meet their  recruitment and retention needs. Agency officials did report that based on anecdotal evidence, they believe  the program helps to make their agency more attractive to potential job  candidates and helps them retain high quality employees. We also recognize that OPM and the CHCO Council  could help to facilitate this coordination. OPM has taken a  number of steps to provide agencies with information and guidance on the  SLR program. Conclusions

Federal agencies have a large degree of discretion in structuring SLR  programs to meet their unique needs, and the SLR program shows promise  as an effective tool for attracting and retaining the talent needed to sustain  the federal workforce. If the program  continues to grow, making it easier to administer will help ensure agencies  make maximum use of available funds to recruit and retain key talent, so  critical in a time of fiscal constraints. This, in  turn, could provide a consistent set of governmentwide indicators that  would allow OPM to assess, and report to Congress on, the program’s  overall results achieved. Objectives, Scope, and Methodology

The objectives of our review were to identify  why selected executive branch agencies are using or not using the  student loan repayment (SLR) program,  how agencies are implementing the SLR program, and  what results and suggestions agency officials could provide about the  program and how they view the Office of Personnel Management’s  (OPM) role in facilitating the program’s use. The agency  selection process was not designed to be representative of the use of the  SLR program in the federal government as a whole, but rather to provide  illustrative examples of why and how agencies decided to use the program  or chose not to use it. These agencies varied in their mission and size.
Why GAO Did This Study

As federal workers retire in greater numbers, agencies will need to recruit and retain a new wave of talented individuals. Agencies need to determine if the federal student loan repayment (SLR) program is one of the best ways to make maximum use of available funds to attract and keep this key talent. GAO was asked to identify (1) why agencies use or are not using the program; (2) how agencies are implementing the SLR program; and (3) what results and suggestions agency officials could provide about the program and how they view the Office of Personnel Management's (OPM) role in facilitating its use. Ten agencies were selected to provide illustrative examples of why and how agencies decided to use or chose not to use the program.

What GAO Found

The largest users among GAO's 10 selected executive branch agencies primarily employed their SLR programs as broad-based retention tools aimed at keeping more recently hired employees with the knowledge and skills critical to their agencies. Officials at these agencies said the program also has an indirect positive effect on their recruitment efforts because job candidates are aware of the benefit and find the incentive attractive. Other agencies used the program as a recruitment and retention tool on a case-by-case basis, offering repayments to highly qualified individuals in occupations where the labor market is competitive. Agencies not using the program reported no real need to do so at this time because they are not facing significant recruitment and retention challenges. Agencies have a large degree of discretion in structuring their SLR programs, and they were tailoring program aspects to meet their unique needs. Those using their programs as broad-based retention tools operated them centrally, while those making loan repayments on a case-by-case basis had decentralized programs operated by their component units. Agencies also varied in the size of their loan repayments depending on the results they were trying to achieve. Although agencies believe it is a useful tool, officials described the program as time consuming and cumbersome to operate. They suggested that more automation and consolidation of program activities would make the program more efficient and easier to operate. Officials also suggested ways to make the program more effective. Since the SLR program is relatively new, agencies did not yet have comprehensive data to assess the program's impact, although they will need to establish a baseline of measures now for future assessments of the program. Currently, anecdotal evidence indicates that employees value the program, and agency officials believe the incentive will become more attractive to agencies once administrative problems are reduced. OPM has taken a number of steps to provide agencies with information and guidance on implementing the program. Human capital officials recognized OPM's efforts, but felt they could use more assistance on the technical aspects of operating the program, more coordination in sharing lessons learned in implementing it, and help consolidating some of the program processes. OPM and the Chief Human Capital Officers (CHCO) Council have an important role in assisting agencies with implementing their SLR programs. They may also be able to help agencies assess their own program results as well as develop a common set of metrics to provide information to Congress on the impact of the SLR program governmentwide.