The Joint Budget Committee reviewed a proposed contract to provide advisory services to state employees seeking benefits under the federal Public Service Loan Forgiveness (PSLF) program.

Grant Wallace, director of the Employee Benefits Division, described the PSLF program and the purpose of the contract. “This is not a racing of student debt. These are individuals who have been working and making regular contributions and payments on their loan for a hundred and 20 months,” Wallace said. He called PSLF “very complicated” and said the vendor would assist employees in navigating program requirements.

Wallace described contract terms included in the presentation: an initial three-year term with a first-year payment of $304,000, an initial three-year cost of $917,000, and a potential total cost across seven years of $2,100,000 if the longer term is exercised. He also said the contract would terminate if Congress or federal action eliminated the federal program: “if this were to go away, this contract would also end at that time period,” Wallace said.

Wallace said the state estimates roughly 6,000 employees could be eligible for assistance and that historically about 10% of applicants complete all requirements to receive forgiveness. The vendor would supply multiple advisers who would conduct on-site visits, agency town-hall meetings, one-on-one sessions with employees, and virtual options.

Senators questioned whether the federal program is allocated by state, whether the state auditor could perform similar work, and what would happen if the contract were not approved. Senator Bryant asked, “do you know what what we're currently funded at?” Wallace said he did not have that information and explained PSLF is an individual program rather than a per-state allocation.

At the close of the recorded transcript segment, the chair asked whether anyone would move to approve item 3; the transcript ends before a motion or vote is recorded.