Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Student Loan Assistance Contract topic
No spam. Unsubscribe anytime.
Subcommittee questions $2.1 million state contract to help employees apply for federal loan-forgiveness
Summary
Members debated a Department of Transformation and Shared Services contract to provide advisory services helping state employees navigate federal Public Service Loan Forgiveness; department staff said the service is federally funded and helped some employees in pilot tests.
The Review Subcommittee reviewed a proposed contract giving employees access to a private adviser to navigate the federal Public Service Loan Forgiveness (PSLF) program. Committee members questioned the value of contracting for this advisory service and noted the program serves state employees rather than the general public.
Courtney Traylor, chief of staff at the Department of Transformation and Shared Services, and Amanda Land, deputy director of the Employee Benefits Division, described the program and why the state issued an RFP. Land said the federal PSLF program is complex and the contractor would help employees assemble records and meet eligibility requirements. She told the committee the program is “using all federal funds.” Representative Kavanaugh objected to spending $2,100,000 for advisory assistance when ordinary citizens do not receive the same service and said the contract’s cost concerned him; he told committee members, in part, that “we're going to spend $2,100,000 for a contract like this when the rest of the citizens of state Arkansas don't get that benefit.”
Traylor and Land said the vendor helped in pilot cases and the department selected the current vendor after an RFP. Land summarized PSLF mechanics: employees in qualifying public-service jobs who make required on-time payments may become eligible for loan forgiveness after a qualifying period; the vendor would advise and assist employees on documentation and eligibility.
Representative Kavanaugh declined to support reviewing one agenda item (110) during the meeting; the committee adopted a motion to review the remaining items and not consider item 110 (see actions).
