NYS Child Welfare Worker Loan Forgiveness Incentive ProgramThe NYS Child Welfare Worker Loan Forgiveness Incentive Program offers loan forgiveness awards to individuals who provide direct care services at a New York State-licensed child welfare agency. Recipients can receive up to $10,000 per year for up to 5 years, or the actual amount of the recipient’s student loan debt, whichever is less.
An applicant must:
- be a NYS resident and have resided in NYS for 12 continuous months prior to applying for this Program;
- be a U.S. citizen or eligible non-citizen;
- have obtained his/her undergraduate or graduate degree from a NYS college or university;
- have an outstanding balance on eligible student loan debt from obtaining such degree;
- apply within two years after college graduation;
- execute a Service Contract agreeing to work full-time as a child welfare worker providing direct care services in an OCFS-licensed voluntary not-for-profit child welfare agency in NYS for five years;
- be in a non-default status on a student loan made under any NYS or federal education loan program or repayment of any NYS award; and
- be in compliance with the terms of any service condition imposed by a NYS award.
Eligible Student Loans
A successful applicant must have an outstanding balance on eligible student loan debt used to fund an undergraduate or graduate degree from an approved NYS college or university.
Eligible student loans include NYS or federal government loans, or private student loans made by commercial entities subject to governmental examination. This does not include Parent PLUS loans.
The maximum lifetime award under this Program is $50,000, or the applicant’s actual eligible student loan indebtedness, whichever is less. Awards will be paid in annual disbursements up to $10,000.
Note: Any loan forgiveness award payment received may have tax implications. A 1099 form will be issued by the NYS Office of the State Comptroller reflecting the total loan forgiveness payments received by the recipient for the year. Any questions regarding potential tax implications should be directed to a tax professional, the Internal Revenue Service, or the NYS Department of Taxation and Finance.
Payments are available for up to five years.
How to Apply
NYS Child Welfare Worker Loan Forgiveness Program application is now available.
Please note that the processing of your application may be delayed while HESC works to resume normal operations.
The number of awards paid under this Program is limited to available funding.
Priority is given to applicants who can demonstrate economic need with a priority given to those applicants completing the second, third, fourth or fifth year of full-time employment as a child welfare worker providing direct care services at a voluntary not-for-profit child welfare agency in NYS licensed by OCFS.
To receive payments each subsequent year, a recipient must annually complete the New York State Child Welfare Worker Loan Forgiveness Incentive Program Payment Application and verify that they have performed the qualified service during the year for which payment is sought, by the deadlines set by HESC. Payment Applications will be provided annually to recipients in February.
Frequently Asked Questions