With average student loans at UW-Madison soaring to amounts over $17,000 and student debt increasing across the country, the U.S. House of Representatives signed a bill Oct. 28 to attract college graduates to federal jobs by offering to alleviate an increased amount of student-loan debt.
If signed by President Bush, the funds allocated for the loan repayment of will be raised from $6,000 to $10,000 and will hopefully increase the allure of federal jobs and increase the government's competitiveness among major corporations, according to U.S. Sen. George Voinovich, R-Ohio, who proposed the bill.
\With college expenses soaring, this legislation helps make the federal government a more attractive employment option,"" Voinovich said. ""Very clearly, having the ability to tell potential recruits, 'Come work for the United States government and we can help you repay your student loans' is an extremely valuable [recruitment and retention] tool.""
The relatively low beginning pay of a federal employee compared with the starting salary of one working in a private corporation and limited opportunities for advancement deter many from pursuing a government job, according to Courtney Shikora, a spokesperson for U.S. Sen. Ted Stevens, R-Alaska, who supports Voinovich's bill. ""He doesn't want people not to go into the industry they want to work in simply because their student loans are excessive,"" Shikora said.
""It is the prospect of these daunting student loans ... that can prevent public service-minded people from coming to work for the government. They simply can't afford it,"" said Rep. Jo Ann Davis, R-Va., another supporter of the bill.
The amendment to the current bill increases the funds for loans and also increases the number of employees eligible for loan repayment. However, in order to qualify for this aid, employees must sign a contract agreeing to work in the federal government for a minimum of three years. Also, the funds can only be used to repay federally-backed loans, not ones from states or private lenders.
According to Robert Sorensen, associate director for the Center on Education and Work, the availability of increased funds should increase the number of graduates applying for federal jobs.
""I would surmise that that would be an attractive thing for students to go into because debts are getting bigger and bigger,"" Sorensen said.
