SEC Amends Student Loan Repayment Program Notifications


11/16/06: In a positive development with respect to the Student Loan Repayment Program, this week the SEC responded to issues raised by Chapter 293 leadership concerning the agency's recent unilateral changes to the program. As a result, the agency is issuing new notices to a number of affected employees increasing their repayment disbursements.

Prior to this week, the SEC denied or greatly reduced the Student Loan Repayment applications of a number of employees who had less than $10,000 in remaining student loan debt. NTEU challenged this change to the program on the grounds that it was not required by any law, regulation or rule, and it constituted a violation of past practice, the SEC’s own policies and procedures, Article 25 of the CBA, 5 U.S.C. 7116(a)(1), (7) and (8), and 5 C.F.R. 537. Agency management appears to have listened to these concerns.

Chapter 293 leaders applauded senior management's decision to change course on this issue. "We are pleased that the agency has reconsidered its original course of action with respect to the Student Loan Repayment Program this year," said Chapter 293 President Greg Gilman. "It is our hope that, in the future, SEC management will choose to engage in constructive dialogue with Chapter 293 officials regarding issues of this nature," he added.

If your Student Loan Repayment Program application this year was originally limited or denied as a result of the proposed new $10,000 rule, please let us know if you have not received an amended notification, by contacting HQ Head Steward Katie Nix, Regional Head Steward Marshall Gandy, or Chapter 293 President Greg Gilman.