Federal Public Service Loan Forgiveness Program - Employee Certification and Awareness Materials
Summary
HB795 establishes a Maryland framework to help public service workers qualify for the federal Public Service Loan Forgiveness (PSLF) Program. The bill requires public service employers to certify employment for current and former employees who request it, and to do so without unreasonable delay. It also directs employers to use a method for calculating hours worked that maximizes an employee’s ability to be treated as full-time for PSLF purposes, including special rules for adjunct and tenured professors at institutions of higher education.
The bill also expands the role of the Student Loan Ombudsman in the Office of the Commissioner of Financial Regulation. The Ombudsman must develop and update outreach materials—such as a standardized letter, fact sheet, and FAQ—to increase awareness of PSLF and participation in the program. Those materials must then be distributed to public service employers, who must provide them to new hires and annually to all employees beginning on specified dates in 2025 and 2026. The Commissioner must adopt regulations to implement the new subtitle, and the act takes effect July 1, 2025.
Impact
HB795 adds a new subtitle to the Labor and Employment Article governing certification of public service employment for federal PSLF purposes, and it amends the Financial Institutions Article to add PSLF outreach duties to the Student Loan Ombudsman. It affects state and local government employers, public institutions of higher education, public libraries, and 501(c)(3) nonprofits that qualify as public service employers, while expressly excluding federal and tribal government entities. The bill creates new employer obligations related to employment verification, full-time status determinations, employee notices, and record-sharing with the U.S. Department of Education.
Sentiment
The bill appears to have broad bipartisan support and a generally favorable reception. It passed the House 124-8 and the Senate 33-13, suggesting strong overall approval with some dissent. The lack of committee transcript material limits insight into detailed debate, but the voting margins indicate that most legislators supported the measure’s goal of improving access to student loan forgiveness for public servants.
Contention
The main points of potential contention are the new administrative duties imposed on public service employers and the directive to interpret full-time status in a way that maximizes PSLF eligibility. Employers may view the certification deadlines, annual notice requirements, and special treatment for adjunct faculty as burdensome or as constraining their internal employment policies. The bill’s supporters likely emphasize borrower access and administrative clarity, while opponents appear to have focused on the added compliance obligations and the state’s role in shaping PSLF certification practices.