ALBANY, N.Y. — New York is making it easier for public servants to get relief from student loans.
Gov. Hochul signed a bill into law Thursday that expands student debt relief to include more teachers and school faculty and will simplify eligibility rules for a soon-to-expire federal loan forgiveness program.
“When you think about people crushed under the weight of student debt, you know, student debt doesn’t just defer your dreams,” the governor said during a signing ceremony at Borough of Manhattan Community College. “It can derail your life if you get caught under this situation where you’re trying to be liberated from it.”
The new law expands access to the Public Service Loan Forgiveness, a federal program that rewards and incentivizes public service work by allowing non-profit and government employees to have their federal student loans canceled after 10 years, or 120 payments.
The measure will streamline certain parts of the application process and clarifies what qualifies as full-time employment to include teachers and faculty who work 30 hours a week.
“We’ve removed bureaucratic barriers, making it easier for those who selflessly chose careers in public service to apply for relief before the limited PSLF Waiver Program ends in October,” sponsor Sen. Kevin Thomas, D-Nassau, said.
Applicants need to apply before the federal program expires on Oct. 31 so New York is ramping up efforts to encourage eligible workers to apply for loan forgiveness before the end of the waiver period.
“This legislation maximizes New Yorkers’ opportunity to benefit from the waiver, and PSLF generally,” said Assembly sponsor Harvey Epstein, D-Manhattan. “From applying a multiplier to teachers’ in-class hours so that hours worked outside of class are more accurately reflected, to ensuring that agencies can transmit paperwork on behalf of workers to the federal government, our legislation will help more New Yorkers get their loans forgiven faster.”
According to the governor’s office, approximately 2.7 million people in New York work in the public or nonprofit sectors. Since 2007, the PSLF program has helped eligible public service workers receive an average of $61,402 in debt relief, but only 10,000 have had their loans canceled through the program.
Hochul also commended President Joe Biden’s recent one-time student loan cancellation as a boon for those who borrowed to get through college, noting that “$16.3 billion in student debt will be canceled in this state alone,” the governor said.
“That’s a clean slate, that means New Yorkers can rebuild their lives. Over 2.2 million New Yorkers will see some type of relief and that’s life-changing.”
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