MnDOT latest agency to offer student loan reimbursement program

The Minnesota Department of Transportation (DOT) became the latest state agency to offer employees a student loan reimbursement program. 159 employees applied for student loan reimbursements from a new program beginning at their agency this month.  

DOT Meet and Confer Co-Chair Teresa Chapman said there was great interest, and need, for a student loan reimbursement program at her agency. “If you’re making monthly payments on your student loans, whether it’s on the principle or the interest, it keeps you from spending on other things your children may need, or upkeep on your house or your retirement,” MnDOT Meet and Confer Co-Chair Teresa Chapman said. “You need a college degree for many of the professional jobs our members have.”      

There will be a recurring $100,000 annual budget for the program and an additional $500,000 was given as a one time, first year funding for a total of $600,000 this year. If there is funding left over after these first round of payments, there is discussion that there may be another opening for people to apply in this fiscal year, but that has not yet been determined.  

Employees also received word this week that the student loan reimbursement payments will be tax-free, much like the program at the Department of Revenue. “This is obviously a huge win as we were looking at it being taxed on both the state and federal levels just last week,” said MAPE Business Agent David Hearth. 

Student loan assistance is a popular recruitment and retention tool used by one-third of businesses. Members say Minnesota counties often use it as a retention and recruitment tool as well.  

Student loan reimbursement has been part of MAPE’s contract since the 2019-2021 contract and some members were able to participate in a pilot before then. The contract allows for agencies to participate at their discretion and student loan reimbursement payments shall not exceed $5,000 per year with up to $25,000 in total payments per member.    

“It’s an important program because it’s great for recruitment and retention of quality employees. Not only is the state competing against the private sector, but we’re also competing against other state agencies to recruit top talent, and this is one way we can do it,” MAPE Region 6 contract negotiator Jason Bonnett said.

 Bonnett believes his department, the Public Utilities Commission (PUC), may have been the first to offer employees a student loan reimbursement program on May 4, 2021, and he received his first reimbursement the following month.  

“The PUC is a fairly small agency; we were at 50-some employees then with half being MAPE members. Probably 10 or 12 people in the past few years were able to take advantage of it. The PUC puts a pot of money aside for each budget and, depending upon how many employees apply, employees could receive $5,000 or the funds could be pro-rated,” Bonnett said.  

MAPE members at the Department of Revenue first began discussing a student loan reimbursement program in 2017 and later formed a Student Loan Organizing Committee. After repeatedly proposing the program in supplemental negotiations, management finally agreed in 2023. Members at the Pollution Control Agency have also finalized their student loan reimbursement plan. 

Members at the Department of Human Services (DHS) have been asking management for a student loan reimbursement program for some time now. They recently held signs and “lobbied” their commissioner as she spoke at an event at the Capitol, and Commissioner Jodi Harpstead agreed to meet with them last month.  

“So much is required of people in social services, their positions often necessitate advanced degrees, yet their salaries don’t reflect this. State government must become a more competitive employer to retain and attract strong and dedicated staff,” Christine Retkwa, a senior healthcare data researcher and campaign organizer at DHS, said  

DHS members are currently working with management on a student loan reimbursement plan expected to go into effect in January.