To entice new college graduates to work for the federal government, President George W. Bush signed a bill last Tuesday that will increase the amount federal agencies can provide employees to help repay their student loans.
Before, agencies could reimburse employees $6,000 per year, up to $40,000 total. The new law allows agencies to repay $10,000 per year up to a total of $60,000.
While the cost of education is a concern for many AU students, paying back loans is not always the first thing on their minds when they graduate.
"The number one concern right now because of the economy is, 'I need a job,'" said Amy LaHait, a career advisor for the School of Public Affairs, "A lot of students don't even think about repaying their loans yet."
Amy Gerber, AU's associate director for Financial Aid, said that about 60 percent of students have some form of financial aid. The financial aid office awards some of the loans students receive, and some come from private lenders.
"Many other employers offer loan reimbursement for employees, it is not just the federal government," Gerber said.
The State Department and the General Accounting Office currently have the largest repayment programs in place in the federal government, The Washington Post previously reported.
However, LaHait said that it is important to be realistic.
"Applying to government positions is a very laborious process," LaHait said, "And when you look at [government employment Web site] USA.opm.gov, it doesn't necessarily say, 'This job has student loan repayments.' That may be changing, but after four months of waiting, when a student finally gets called back for an interview, that's when they might say that loan repayment is part of the benefits."
The program will take some time to put into place, LaHait said.
"It's not very predictable in nature at this time because it's so new," LaHait said. "It's extremely beneficial, but students need to wait patiently."
Although programs to pay back employees' student loans are popular among federal agencies, most agencies are finding it hard to do this because of tight budgets.
"Sometimes students get out and they can't afford to work for the federal government," said Marcie Ridgway, spokeswoman for Sen. George V. Voinovich (R-Ohio), who sponsored the bill. "This gives agencies the option to use it. If they want to offer it to a candidate, they can."
Students agree that the law sounds promising, especially for those students already planning on working for the government.
"Because AU is such a politically-geared school, I can see a lot of students will be working for the government," sophomore Storme Gray said. "For students who are already planning on going into government jobs, [the law] would help."
Gray is planning on going into graphic design after she graduates, but she said the law "might make me more inclined to work for [the government]," even though she estimates she will only have about $9,000 to pay back in loans after four years in college.
Jeremy Taylor, a sophomore majoring in political science, agrees.
"I'm not too clear on the financial stuff, my parents take care of that," he said, "But I think it will bring in employees that weren't thinking about going into government jobs."
Senior Shaina Lavin, Anthropology major, agrees that the program is a good idea.
"If it works out that you're interested in the government and you have loans, it's great," Lavin said, "I personally wouldn't take a job in government just to take care of my loans."
Colin Mattoon, a junior studying Communications, Legal Institutions, Economics, and Government, said, "It depends on how much a job pays, but I'd weigh in the reimbursement as an advantage."
The bill was launched by Voinovich and was supported in the Senate and House by Sen. Ted Stevens (R-Alaska) and Rep. Jo Ann S. Davis (R-Va.).
"With college expenses soaring, this legislation helps make the federal government a more attractive employment option," Voinovich said in a press release last Tuesday. "With the president's signature today, tomorrow's college graduates will have a brighter future working for the federal government"
