Judicial Contractor Loan Forgiveness Eligibility

Independent contractors (contractors) were previously ineligible for the federal public service loan forgiveness program (program), which forgives remaining federal student loan liability for government and nonprofit full-time employees after 10 years of qualifying service, but in 2023 the federal government made contractors who perform work for a government agency eligible for the program if the work cannot be performed by a government employee. Three independent judicial agencies, the office of the alternative defense counsel, the office of the child's representative, and the office of respondent parents' counsel (agencies) primarily use contractors to provide legal representation on behalf of the agencies because providing the same services through state employees would create ethical conflicts.

To enable these contractors to qualify for the program if they otherwise meet program requirements, the act:

• Clarifies that state employees cannot provide the legal services that the independent contractors provide;
• Allows the agencies to certify that a contractor appears to be eligible for the program; and
• Because some contractors provide or have provided legal services on behalf of more than one of the agencies, authorizes the agencies to share contractor information to the extent necessary to certify a contractor's eligibility for the program.

EFFECTIVE May 15, 2024
(Note: This summary applies to this bill as enacted.)