The Public Service Loan Forgiveness (PSLF) program has long been a beacon of hope for public servants seeking relief from federal student loan debt. However, navigating its complexities has often been challenging. Recognizing these hurdles, New York State has enacted legislation to simplify access to PSLF for its public workforce.
For HR leaders, understanding these changes and streamlining the process is more important than ever. Here’s what you need to know:
Key Updates to New York’s PSLF Law
In 2022, New York passed legislation to address common roadblocks in the PSLF process. Key changes include:
- Employer Certification Requirements
Public service employers in New York, including state agencies, local governments, and nonprofits, now have specific obligations to assist employees with PSLF:- Certify employees directly with the Department of Education for PSLF (an option that is not currently available); or,
- Proactively provide PSLF forms in three key instances (at minimum):
- To any employee who requests one.
- To employees who have been previously certified since the law took effect.
- To employees leaving the organization.
- Standardized Definition of Full-Time Employment
Employees working 30 hours or more per week now qualify as full-time under PSLF. For educators, prep time is included in this calculation, ensuring fair recognition of their contributions. - Clarified Definitions
The law provides clear definitions for terms like “public service employer” and “certifying employment,” removing ambiguities that previously hindered access to PSLF.
These updates empower HR leaders to take a more active role in facilitating PSLF for their workforce while ensuring organizational compliance.
The Impact of PSLF on Your Workforce
The potential impact of PSLF is enormous. Since 2007, eligible public service workers in New York have received an average of $61,402 in debt relief. For many employees, this financial freedom transforms their ability to focus on both professional and personal goals.
Beyond the benefits for employees, PSLF is a valuable tool for HR leaders to:
- Boost Retention: Debt relief fosters loyalty and satisfaction.
- Improve Recruitment: Competitive benefits like PSLF make organizations more attractive to top talent.
- Strengthen Financial Wellness: Employees with less financial stress are more engaged and productive.
However, with these updates to the law comes additional responsibility for HR teams. Ensuring compliance isn’t just about meeting legal requirements—it’s about leveraging PSLF to create a stronger, more engaged workforce. And while the task might seem overwhelming, you don’t have to navigate it alone.
That’s where Summer comes in. Summer’s expertise can amplify this impact, helping you stay on top of program requirements while ensuring employees get the support they need.
How Summer Helps
Summer partners with HR teams to simplify PSLF, making it easier for everyone involved. Here’s how we help:
- Guided Employee Support: Employees receive step-by-step assistance through the PSLF application process, ensuring no detail is overlooked.
- Simplified Certification: Summer reduces bottlenecks by helping employers comply with the new certification requirements.
- Certified Student Loan Experts: Unlimited 1:1 access to Certified Student Loan Experts who can answer questions specific to employees’ loans.
- Educational Resources: Workshops and tools empower employees with the knowledge they need to succeed.
- Insights for HR Teams: Data-driven analytics track employee progress and highlight opportunities to improve engagement.
By integrating these solutions, Summer ensures that PSLF becomes a seamless and impactful benefit for your workforce—without adding strain to your HR team.
Ready to Take the Next Step?
Navigating New York’s PSLF law doesn’t have to be overwhelming. With the right tools and support, your organization can help employees achieve financial freedom while strengthening your ability to attract and retain top talent.
Visit meetsummer.com to learn how we can help your organization implement PSLF seamlessly and effectively.
