LICENSED PROFESSIONAL LOAN REPAYMENT POLICY (HR2479) 2023-01-25.PDF
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MARICOPA COUNTY INTERNAL POLICY Policy Title: LICENSED PROFESSIONAL LOAN REPAYMENT Policy Number: HR2479 Current Adoption Date: 01/25/2023 Current Implementation Date: 01/25/2023 Approved by: BOARD OF SUPERVISORS Board Agenda Number: C-31-19-040-6-02 Original Adoption Date: 04/24/2019 I. PURPOSE To provide incentives to address critical recruitment and retention issues for licensed professionals whose industry often incurs significant student loan debt and who might otherwise be precluded from accepting a job with the County, or who would be unable to continue working for the County because of lower paying public sector jobs compared to the private sector. II. AUTHORITY This Policy is authorized by the Board of Supervisors pursuant to A.R.S.§11-251. III. APPLICATION This Policy applies to all Maricopa County elected offices and appointed departments as well as the Flood Control District of Maricopa County and the Maricopa County Library District (Special Districts). The Board of Supervisors is authorized to jointly adopt policies applying to the Special Districts under the Intergovernmental Agreement, C- 06-18-393-6-00, approved on April 11, 2018. Department and employee participation in this Policy is voluntary. An Appointing Authority may set additional limitations or business related requirements for participation so long as those requirements do not conflict with this Policy and are applied consistently to all similarly situated employees. IV. DEFINITIONS A. Administrative Panel: A panel of representatives from three different County elected offices or departments. B. Appointing Authority: An elected official, the single administrative or executive head of a department, or the designated representative authorized to act in this capacity. C. Participant: An eligible employee who chooses to participate in loan repayment under this Policy. D. Plan Administrator: An employee designated by the Appointing Authority to manage a loan repayment program; this employee may not be participating in the program. V. POLICY A. Employee Eligibility Participation is voluntary, and employees may end participation at any time. Eligible employees must: 1. Be a regular attorney (licensed to practice in Arizona), medical examiner (Anatomic and Forensic Pathology Certified) who works at least 20 hours per week (excludes contract and temporary employees), or veterinarian (licensed to practice in Arizona). 2. Be in a position where a critical recruitment and retention issue exists that requires a licensed professional in good standing and whose industry typically incurs significant student loan debt. Policy Title: LICENSED PROFESSIONAL LOAN REPAYMENT Policy Number: HR2479 Current Adoption Date: 01/25/2023 Page 2 of 4 3. Meet performance standards. Participants who do not meet standards are ineligible and remain ineligible until the quarter in which they meet standards. 4. Apply for and be accepted for participation in the applicable program. B. Funding: Departments must fund repayments within their existing budget and demonstrate they do not create a future unfunded obligation. C. Responsibilities 1. Participants Must: a. Apply for and participate in all other sources of loan repayment assistance, forgiveness, and cancellations for which they are eligible. b. Submit their initial application and supporting materials by the program’s deadlines. c. Provide updates and supporting documents for changes to loans within the quarter in which the changes occur (e.g., changes in lender, accounts, etc.). d. Employees who disagree with Plan Administrator decisions may appeal to the Administrative Panel within 30 days of the decision being appealed. 2. Plan Administrators: a. Make program applications and information available to employees. b. Verify applicant eligibility each quarter. c. Process all applications and subsequent documentation in a timely manner. d. Provide Payroll with documentation required to process program payments. e. Maintain all records related to this policy including applications, eligibility verification documents, quarterly reimbursement requests, account update requests, a list of participating employees, and other relevant materials. f. Track and report performance data relevant to this policy (e.g., number of participants, amount of payments, and recruitment and retention statistics). 3. Administrative Panel: a. Develop procedures and forms for this policy. b. Final arbiter of appeals and disputes. D. Educational Debt Eligibility 1. Loans must be for undergraduate, graduate, doctoral, or joint degree programs required to obtain the professional licensure (e.g., tuition and other reasonable educational and living expenses). 2. Eligible expenses include principal, interest, and related expenses from outstanding, eligible loans. 3. Eligible Educational Loans: a. Federal Consolidated or Federal Direct Consolidated Loan: A loan made, insured, or guaranteed under section 428C or 455(g) of the Higher Education Act of 1965, as amended, 20 U.S.C. § 1078- Policy Title: LICENSED PROFESSIONAL LOAN REPAYMENT Policy Number: HR2479 Current Adoption Date: 01/25/2023 Page 3 of 4 3 and 20 U.S.C. § 1087e(g) to the extent that such loan was used to repay a Federal Direct Stafford, a Federal Direct Unsubsidized Stafford Loan, or a loan made under section 428 or section 428H of such Act. b. Graduate Plus Loan: A fixed interest rate student loan guaranteed by the U.S. Government. c. Perkins Loan: A loan made, insured, or guaranteed under Part D or E of Title IV of the Higher Education Act of 1965, as amended, 20 U.S.C. § 1087aa-1087ii. d. Stafford Direct Subsidized or Unsubsidized Loan: A loan made, insured, or guaranteed under Part B of Title IV of the Higher Education Act of 1965, as amended, 20 U.S.C. § 1071, 20 U.S.C. § 1078-8, and 20 U.S.C. § 1087a, et seq. e. Student loans available through an educational institution. f. Bar Study Loans: A commercial credit-qualified private loan specifically to help cover expenses incurred after graduation while preparing for the Arizona Bar Examination. g. Private commercial educational or consolidated loans that are not otherwise excluded by this policy. 4. Ineligible Educational Loans: a. Educational loans for degrees or programs not required to obtain the professional licensure. b. Federal Parent PLUS Loans. c. Private loans from friends, family, or private entities. d. Credit card or other consumer debt used to finance education. e. Qualifying loans consolidated with non-educational loans. f. Education loan debt that has been paid, satisfied, and/or discharged. 5. Eligible educational loans consolidated with non-eligible educational loans and spouses’ consolidated education loans may be reimbursed at a prorated amount based on the eligible amount prior to consolidation. E. Program Benefits 1. Participants may request repayments after acceptance into the program for payments made during the quarter in which they are accepted. 2. The repayment cannot exceed the actual loan payment made by the participant during that quarter. 3. Receipt of a program payment does not constitute a legal entitlement to future benefits nor does it constitute a right or entitlement to continued employment. 4. Amount: Amounts may vary based on industry trends, difficulty in recruiting and retaining, and available financial resources. Board approved amounts are: a. Attorneys: Up to $1,800 per quarter ($72,000 maximum total benefit) b. Medical Examiners: Up to $6,250 per quarter ($100,000 maximum total benefit) c. Veterinarians: Up to $6,250 per quarter ($100,000 maximum total benefit) Policy Title: LICENSED PROFESSIONAL LOAN REPAYMENT Policy Number: HR2479 Current Adoption Date: 01/25/2023 Page 4 of 4 F. Taxes Loan repayments are taxable income and employees are responsible for any associated tax liability. G. Repayments Following Voluntary Separation from Employment 1. Participants who voluntarily leave County employment before 7 years of consecutive County service as a licensed professional for which a loan repayment was issued, must repay all sums received during the last 12 months prior to their separation. 2. The amount owed or a portion thereof may be deducted from the final paycheck. 3. Participants whose final paycheck is insufficient to cover the full amount owed must establish a repayment plan to be completed within one (1) year from the date of their separation from employment. 4. Failure to repay amounts owed by the established due date may result in referral to a debt collection agency. H. The County Manager or designee may approve exceptions to this Policy that are consistent with the intent of the Policy. Revision History Version Revision Date Description of Revision 1 04/24/2019 Initial version: Replaces the Attorney Loan Repayment Assistant Policy (B7020) and the Medical Examiner Loan Repayment Assistance Policy (B7021) (C-31-19-040-6-00) 2 12/08/2021 Add Veterinarians as eligible participants; update format (C-31-19-040-6-01) 3 01/25/2023 Increase the loan repayment amount for Veterinarians (C-31-19-040-6-02)