State Legislation has been signed that expands and simplifies access to the federal Public Loan Forgiveness program.
Governor Kathy Hochul signed the legislation that establishes uniformity around what qualifies as full-time employment for the purposes of accessing the loan forgiveness program and allows public service employers to certify employment on behalf of workers.
The federal Public Service Loan Forgiveness program rewards and incentivizes public service work by cancelling a portion of borrowers’ federal student loans. The program requires borrowers to be full-time employees of an eligible public service employer and make 120 qualifying payments towards their student loan, after which the remainder of their federal student loan debt is forgiven. Any student loan debt that is forgiven under this program will not be subject to tax under New York State tax law.
Hochul said New Yorkers working in public service – in government or at a not-for-profit – with outstanding student loans may be eligible for forgiveness under a PSLF Waiver even if they were previously denied. Borrowers only have until October 31, 2022, to take advantage of the PSLF Waiver.
For more information, visit https://dfs.ny.gov/consumers/student_protection#changes-to-the-public-service-loan-forgiveness-program