Relates to the calculation of full-time employment for purposes of the federal public service loan forgiveness program

2025 Regular Session Introduced by Jessica Ramos

Sets a fixed 5 hours of PSLF credit for each hour of lecture/classroom time for qualifying public service faculty, effective immediately.

COMMITTED TO RULES

Summary of Bill S. 9174 (2025-2026, New York)

Purpose and intent

The bill amends the New York Labor Law to modify how full-time employment is calculated for faculty or teacher employees when determining eligibility and credit for the federal Public Service Loan Forgiveness (PSLF) program.

Specifically, it sets a fixed credit for lecture or classroom time to better align with PSLF credit calculations.

Key provisions

Amends Subdivision 1 of section 1001 of the Labor Law (as added by chapter 562 of 2022).

New credit calculation for faculty/teacher employees:

For a public service employer certifying employment after the effective date of the act (i.e., after the chapter’s effective date in 2026):
The employer shall credit 5 hours worked for each hour of lecture or classroom time.
This credit applies regardless of when the hours were worked, including hours worked prior to the 2026 effective date.

Important caveat:

The new 5-hour credit per hour of lecture/classroom time does not override any greater adjustment factor already established by a collective bargaining agreement or an employer policy that recognizes additional work related to lecture/classroom time for PSLF purposes.

Effective date:

The act takes effect immediately upon enactment.

Who is affected

Faculty or teacher employees who work in public service settings and whose employment is certified for PSLF purposes by a public service employer.

Public service employers responsible for certifying PSLF-related employment time for faculty.

Procedural and timeline considerations

The bill was introduced February 10, 2026 and is set to take effect immediately upon enactment.

It amends a provision originally added in 2022, refining the calculation approach specifically for PSLF credit.

Current or future collective bargaining agreements or employer policies that already provide higher PSLF-related time credits retain precedence over this statute (i.e., the higher adjustment remains in force).

Potential impact

Aligns New York’s calculation of full-time employment for PSLF purposes with a standardized credit: 5 hours credited for each hour of lecture/classroom time.

Aims to simplify and potentially increase PSLF credit for qualifying faculty, potentially accelerating loan forgiveness timelines for those working in public service.

Maintains deference to existing higher adjustment factors negotiated through collective bargaining or employer policy, preserving negotiated benefits.

Could affect how institutions record and certify faculty workloads for PSLF eligibility starting from 2026 onward, including any retroactive considerations for hours worked before 2026 if applicable under the PSLF certification process.

If you’d like, I can compare this to the current federal PSLF credit rules and illustrate a few example scenarios showing how the 5:1 credit would convert hours to qualifying “full-time equivalent” for PSLF purposes.