The State Agencies & Governmental Affairs Senate committee reviewed a proposed contract to hire an adviser to help state employees navigate the federal Public Service Loan Forgiveness program.

Grant Wallace, director of the Employee Benefits Division, presented the proposed contract and said the state would hire a private firm to provide on-site and virtual advising, town halls and one-on-one sessions for employees seeking PSLF approval. Wallace described PSLF as a program, signed into law during the George W. Bush administration, that can forgive a remaining student-loan balance for individuals who work in government or nonprofit jobs and make 120 qualifying payments. He said the contract before the committee is for an initial three-year term with a first-year payment of $304,000, an initial three-year cost of $917,000 and a total cost over seven years of $2.1 million if the full term is exercised.

Wallace emphasized the program's complexity and said the firm would assist with employee verification and interaction with the Office of Personnel Management. "I will personally attest to the complexity of it," Wallace said, recounting his own experience trying to meet the program's requirements. He told the committee that roughly 10% of those who attempt to complete PSLF make it through under current processes and that the state estimated about 6,000 employees could be eligible; the presenter said the program is expected to improve that success rate.

Senator Bryant asked whether funding for PSLF is set by Congress or allocated to states; Wallace said participation is determined at the individual level rather than by a state allocation. Committee members asked what would happen if the contract were not approved; Wallace said the state would continue current efforts but views the contract as a way to reduce employee financial stress and improve retention. He also said the contract would end if congressional action eliminated the federal program. Wallace said the vendor would employ multiple advisers rather than a single adviser and that the choice to contract reflects vendor expertise rather than using existing state audit or payroll divisions.

By the end of the excerpt the chair asked for a motion to approve the contract; no motion, second or recorded vote appears in the provided transcript excerpt.