N.J. Stat. tit. 18A, ch. 71C

in effect

N.J. Stat. § 18A:71C-1 Administration by the authority.

18A:71C-1. Administration by the authority. It shall be the duty of the authority to administer the Federal Family Education Loan Program for this State. The authority shall adopt rules and regulations, and prescribe and provide appropriate forms for application as may be necessary or appropriate for administering the programs of a State guaranty agency, pursuant to 20 U.S.C.s.1071 et seq. As used in this act: "Federal Family Education Loan" (FFEL) program means the programs of the United States government making low interest loans available to students or parents of students to pay for their cost of attending post-secondary institutions established pursuant to 20 U.S.C.s.1071. "Federal loan" or "FFEL Loan" means any loan made under the FFEL program. "Guaranty agency" means any State agency or not-for-profit corporation which has entered into an agreement with the United States Secretary of Education to guarantee loans made under the FFEL program and which guarantees loans to eligible residents and nonresidents of this State. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-2 Application; grounds for approval.

18A:71C-2. Application; Grounds for Approval. Any application for a federal loan under this article shall be submitted to the authority for its approval, and the authority shall approve the application only if it finds that the applicant is an eligible borrower under the "Higher Education Act of 1965," Pub.L.89-329 (20 U.S.C.s.1001 et seq.), and implementing rules and regulations, and has complied with all rules adopted by the authority pursuant to this article in connection with the granting of the loans. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-3 Approval and granting of federal loan.

18A:71C-3. Approval and Granting of Federal Loan. Upon approval by the authority of a federal loan application, any eligible lender may make a loan as approved and upon the terms and conditions required under this article, but no moneys shall be advanced or paid under any loan until the applicant has satisfied the authority, and the eligible institution certifies to the lender that the applicant, or the person on behalf of whom the parent is the applicant, has been admitted to, or is in regular attendance and in good standing at, an eligible institution located in this State or elsewhere. Any lender making a loan shall cooperate with the authority in supervising the use of credit in accordance with its purposes. If disbursement of loan proceeds is in the form of a check, the check representing the loan proceeds shall be made payable to the applicant and the eligible institution jointly, except when the applicant is attending an eligible institution not located in the United States, in which instance the check may be made payable to the applicant only. Disbursement may also be made by master check, electronic funds transfer, or other methods permitted under 20 U.S.C.s.1071 et seq. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-4 Federal loan evidenced by note; interest rate; method of payment; security.

18A:71C-4. Federal Loan Evidenced by Note; Interest Rate; Method of Payment; Security. Each federal loan made under this article shall: a. be evidenced by a note or other obligation approved by the authority; b. bear interest at a rate not exceeding the maximum percentage per annum permitted under 20 U.S.C.s.1071 et seq. and implementing rules and regulations; c. be payable in such manner or in such installments as permitted under 20 U.S.C.s.1071 et seq. and implementing rules and regulations; and d. be secured only by the personal liability of the maker, and not by any endorsers, co-maker's collateral, or other security, except as may be permitted under 20 U.S.C.s.1071 et seq. and implementing rules and regulations. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-5 Extension and refinancing of federal loans.

18A:71C-5. Extension and Refinancing of Federal Loans. Any loan made under this article may be extended or refinanced at the discretion of the lender without affecting the obligation of the authority hereunder for such period and under such terms as permitted under 20 U.S.C.s.1071 et seq. and implementing rules and regulations, and any loan may be reduced at any time at the option of the borrower. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-6 Purchase of notes.

18A:71C-6. Purchase of Notes. Whenever any approved note, including notes held by the authority in the Higher Education Student Assistance Fund, or any installment thereon, shall be in default as defined under 20 U.S.C.s.1071 et seq., upon the death or total and permanent disability of the borrower, or upon any other reason for payment of a claim permitted under 20 U.S.C.s.1071 et seq., the authority shall, upon the demand of a lender and subject to a lender's meeting federal and authority due diligence requirements, purchase the note by paying to the lender or by transferring to the Higher Education Student Assistance Fund out of the Loan Reserve Fund, the amount of principal, interest and other permissible charges then due and owing on the note, as herein provided. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-7 Falsely securing federal loan a misdemeanor; penalty.

18A:71C-7. Falsely Securing Federal Loan a Misdemeanor; Penalty. Any person who, having obtained a federal loan under this act, solicits, applies for, or accepts another such loan, except as specifically authorized in this act, and any person who knowingly or willfully furnishes any false or misleading information for the purpose of obtaining a loan, or of enabling another to obtain a loan, under this act, shall be guilty of a crime of the fourth degree. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-8 Repayment Compromises, modifications and other determinations made by authority.

18A:71C-8. Repayment Compromises, Modifications and Other Determinations Made by Authority. The authority may, with respect to the exercise of its functions related to loans guaranteed by it under this article, to the extent consistent with 20 U.S.C.s.1071 et seq. and notwithstanding the provisions of any other law to the contrary: a. consent to the modification, with respect to rate of interest, time of payment of principal or interest or any portion thereof, or other provisions of any note, or any instrument securing a loan which has been guaranteed by the authority; b. authorize payment or compromise, subject to the approval or approvals required under the authority's write off and compromise procedures, of any claim upon or arising as a result of any such guaranty; and c. authorize payment, compromise, waiver or release, of any debt, right, title, claim, lien or demand, however acquired, including any equity or right of redemption, and the waiver or release of any debt, right, title, claim, lien or demand including any equity or right of redemption shall be sufficient if executed by the executive director or designee on behalf of the authority. The register or county clerk of any county and the clerk of any court is hereby authorized to cancel of record any lien, including, but not limited to, judgments, chattel mortgages and conditional sales agreements whenever the document evidencing the cancellation or request for cancellation is signed by the executive director or designee on behalf of the authority. The register and the clerk of any county are authorized to record any documents of the authority signed by the executive director or designee. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-9 Contracts, promissory notes, made by minor, valid and binding.

18A:71C-9. Contracts, Promissory Notes, made by Minor, Valid and Binding. Any contract, promissory note, or other written obligation made by any minor to repay or secure payment of a loan made under this article, payment whereof is guaranteed or insured by the authority, or which forms part of the same transaction as the making of the loan shall, notwithstanding any provision of law to the contrary, be as valid and binding as if the person were at the time of the making and execution 18 years of age, and it may be enforced in any action or proceeding by or against the person in his own name, and shall be valid without the consent of the parent or guardian of the person, and the person shall not disaffirm the instrument because of his age, nor shall the person hereafter interpose the defense that he is, or was, at the time of the making and execution, a minor in any action or proceeding arising out of any such loan. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-10 Deduction of overdue student loan payments from wages of employees of the state, institution of higher education and public authorities.

18A:71C-10. Deduction of Overdue Student Loan Payments From Wages of Employees of the State, Institution of Higher Education and Public Authorities. Whenever any officer or employee of the State of New Jersey, a public institution of higher education in this State now or hereafter established or authorized by law, any independent institution of higher education in this State now or hereafter established that receives State funds, or any public authority established pursuant to State law, has failed to make scheduled payments to the Higher Education Student Assistance Authority on any note held by that authority pursuant to N.J.S.18A:71C-6, there shall be deducted from the wages of the employee the full amount of both any arrears payment and any schedule payment due to the Higher Education Student Assistance Authority until such time as the note is fully satisfied. In the case of State officers or employees on the centralized regular bi-weekly payroll, the Department of the Treasury shall make the deduction and shall transmit the payments to the Higher Education Student Assistance Authority, but the Department of the Treasury shall retain an amount, as established by regulation of the authority, of the moneys collected to defray the cost of collection. In the case of officers and employees not on the centralized regular bi-weekly payroll, the chief financial officer of the institution or the public authority shall make the deduction and transmit the payments to the Higher Education Student Assistance Authority, but the institution or public authority shall retain an amount, as established by regulations of the Higher Education Student Assistance Authority, of the moneys collected to defray the cost of collection. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-11 Regulations.

18A:71C-11. Regulations. The Department of the Treasury and the authority shall jointly promulgate regulations concerning the procedures and methods to be employed for the implementation of the provisions of this act concerning deductions for overdue student loan payments from wages. The regulations shall be consistent with all federal requirements or limitations regarding any information utilized in any collection, and shall in addition provide for due notice to the employee of an opportunity for a hearing upon request prior to any collection. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-12 Deduction of overdue student loan payments from wages of county and municipal employees.

18A:71C-12. Deduction of Overdue Student Loan Payments from Wages of County and Municipal Employees. Whenever any officer or employee of a county or municipality has failed to make scheduled payments to the authority on any note held by the authority pursuant to N.J.S.18A:71C-6, the chief financial officer of the appropriate local unit shall deduct from the wages of the employee the full amount of both any arrears payment and any scheduled payment due to the authority, but the local unit shall retain an amount not to exceed 1% of the moneys collected to defray the cost of collection. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-13 Guidelines for payment of arrearages.

18A:71C-13. Guidelines for Payment of Arrearages. The Division of Local Government Services in the Department of Community Affairs, in conjunction with the Department of the Treasury and the Higher Education Student Assistance Authority, shall prepare guidelines concerning the procedures and methods to be employed by local units for the implementation of N.J.S.18A:71C-12. The guidelines, and all actions taken by local units, shall be consistent with all federal regulations and limitations regarding any information utilized in any collection. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-14 Deduction of overdue student loan payments from wages of certain boards or authorities.

18A:71C-14. Deduction of Overdue Student Loan Payments From Wages of Certain Boards or Authorities. Whenever any officer or employee of a local board of education, a county or municipal board of health or an autonomous authority created by a county or municipality pursuant to statute has failed to make scheduled payments to the Higher Education Student Assistance Authority on any note held by that authority pursuant to N.J.S.18A:71C-6, the board or autonomous authority shall deduct from the wages of the employee the full amount of both any arrears payment and any scheduled payment due to the Higher Education Student Assistance Authority until such time as the note is fully satisfied. The board or autonomous authority shall transmit the payments to the Higher Education Student Assistance Authority, but the board or autonomous authority may retain an amount of the moneys collected as established by regulations of the Higher Education Student Assistance Authority to defray the cost of collection. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-15 Guidelines for payment of arrearages.

18A:71C-15. Guidelines for Payment of Arrearages. The Department of Education and the Division of Local Government Services in the Department of Community Affairs, in conjunction with the Department of the Treasury and the Higher Education Student Assistance Authority, shall prepare guidelines concerning the procedures and methods to be employed by boards and autonomous authorities for the implementation of N.J.S.18A:71C-14. The guidelines, and all actions taken by a board or autonomous authority pursuant to this act, shall be consistent with all federal regulations or limitations regarding any information utilized in any collection. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-16 Deduction of overdue student loan payments from wages of employees of the private sector.

18A:71C-16. Deduction of Overdue Student Loan Payments From Wages of Employees of the Private Sector. Whenever any officer or employee or any employer within or outside this State not described in N.J.S.18A:71C-10, N.J.S.18A:71C-12 or N.J.S.18A:71C-14 has failed to make scheduled payments to the Higher Education Student Assistance Authority on any note or other written obligation held by that authority, there shall be deducted from the wages of the employee the full amount of both any arrears payment and any scheduled payment due to the Higher Education Student Assistance Authority until such time as the note or other written obligation is fully satisfied. The employer shall retain an amount, as established by regulations promulgated jointly by the Department of the Treasury and the Higher Education Student Assistance Authority, of the moneys collected to defray the cost of collection. An employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage deduction in accordance with this section by reason of the fact the individual's wages have been subject to wage deduction under this section, and the individual may sue in a State court of competent jurisdiction any employer who takes this action. The court shall award attorneys' fees to a prevailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order another remedy as may be reasonably necessary. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-17 Lien not treated as wage execution.

18A:71C-17. Lien Not Treated as Wage Execution. The lien against an employee's wages undertaken pursuant to N.J.S.18A:71C-10, N.J.S.18A:71C-12, N.J.S.18A:71C-14 and N.J.S.18A:71C-16 shall not be considered an execution against wages pursuant to N.J.S.2A:17-52, and shall not prevent the simultaneous satisfaction of an execution from the amount of wages remaining after the satisfaction of this debt. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-18 Exchange of information with other State departments and agencies.

18A:71C-18. Exchange of Information with Other State Departments and Agencies. The authority may use the following procedures to locate borrowers who have failed to make scheduled payments to the authority on any note held by the authority: a. the authority may furnish the name and Social Security number of a delinquent or defaulted borrower to the Division of Pensions and Benefits, the Division of Taxation, the Division of Motor Vehicles, the Department of Human Services, the Casino Control Commission, and any State professional or licensing board or body. Except as prohibited by federal or State law, these departments, divisions, boards, and bodies shall return to the authority the address of any borrower or the address of the employer of any borrower that appears in its most recent records; b. the authority may furnish the name and Social Security number of any delinquent or defaulted borrower to the Department of Labor. Except as prohibited by federal or State law, the Department of Labor shall return to the authority the address of the employer of any such borrower that appears in its most recent records; c. the authority shall reimburse the department, division, board or body listed in subsections a. and b. of this section for any costs associated with services performed pursuant to this section. Information furnished to the authority by the entities listed in subsections a. and b. shall be considered confidential and shall not be disclosed except to a federal department or agency entitled to the information because the disclosure is necessary for the proper administration of this article. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-19 Professional or occupational misconduct.

18A:71C-19. Professional or Occupational Misconduct. a. Notwithstanding provisions of any law to the contrary, any State professional or occupational licensing board shall define a borrower's delinquent or default status of any loan made or guaranteed by the authority as misconduct punishable by the denial, suspension, or revocation of the borrower's professional or occupational license by that board. b. For the purposes of this section: "License" means the whole or part of any State agency permit, certificate, approval, registration, charter or similar form of permission to engage in a profession, trade, business or occupation and any notification required to be made to any State agency that a profession, trade, business or occupation is being engaged in or is expected to be commenced; provided that "license" shall not include any original charter or certificate of incorporation granted by any State agency; "State agency" means the legislative or executive branch of the State, including, but not limited to, any department, board, bureau, commission, division, office, council, agency, or instrumentality thereof, or independent agency, public authority or public benefit corporation. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-20 Deductions of overdue payments from State lottery winnings.

18A:71C-20. Deductions of Overdue Payments from State Lottery Winnings. a. The Director of the Division of State Lottery in the Department of the Treasury and the executive director shall initiate an ongoing data exchange in the Office of Telecommunications and Information Systems in the Department of the Treasury before a payment is made of a State lottery prize in excess of $1,000. b. The executive director shall periodically supply the Office of Telecommunications and Information Systems with a list of those individuals with delinquent or defaulted student loan repayments to the authority. c. The Director of the Division of State Lottery shall promptly provide the Office of Telecommunications and Information Systems with a prize winners list, which shall include the prize claimant's name, address and Social Security number and the amount of the pending payment. d. The Office of Telecommunications and Information Systems shall cross check the lottery list with the data supplied by the executive director for a Social Security number match. If a match is made, the Office of Telecommunications and Information Systems shall notify the authority. e. If a lottery prize claimant is on the list of individual delinquents or in default of a student loan, the authority shall promptly notify the Department of the Treasury and the Division of the State Lottery of the claimant's name, address, Social Security number and the outstanding amount of the student loan. The Department of the Treasury shall, after withholding any appropriate amount for income tax or such other withholdings as may be required under federal or State law, withhold this amount from the pending lottery payment and transmit this amount to the authority. If the amount of the student loan outstanding is greater than the amount available from the lottery payment, the entire amount available shall be transmitted to the authority. f. Any of the claimant's lottery prize funds remaining after withholding pursuant to subsection e. of this section shall be paid to the claimant in accordance with lottery procedures. g. The State Treasurer in consultation with the authority shall promulgate, pursuant to the "Administrative Procedure Act," P.L.1968, c. 410 (C.52:14B-1 et seq.), such rules and regulations as may be necessary to effectuate the purpose of this section including, but not limited to, regulations providing for prompt notice to any prize winner from whose award the Department of the Treasury seeks to withhold funds of the amount to be withheld and the reason therefor and providing the prize winner with the opportunity for a hearing upon request prior to the disposition of any funds. The State Treasurer shall also provide, by regulation, safeguards against the disclosure or inappropriate use of any personally identifiable information regarding any person obtained pursuant to this section. For purposes of this section, "prompt notice" shall mean within 14 days or less. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-21 College loans to assist state students loan program.

18A:71C-21. College Loans to Assist State Students Loan Program. There is hereby established within the authority a New Jersey College Loans to Assist State Students (NJCLASS) Loan Program. Under the NJCLASS Loan Program, the authority shall make loans available in such amounts as necessary to ensure that student loans remain generally available to, or for the benefit of, eligible students who are not eligible for, or have additional financial need beyond, a federally insured student loan and who meet the eligibility criteria set forth in N.J.S.18A:71C-27. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-21.1 Annual report on NJCLASS Loan Program.

1. The authority shall annually submit to the Governor and to the President of the Senate and the Speaker of the General Assembly a report on the NJCLASS Loan Program. The report shall be submitted no later than August 1 of each year and shall include, but not be limited to, the following information: the principal amount of bonds issued to finance the NJCLASS Loan Program in the prior year and the interest rates offered on those bonds; the total principal amount of authority bonds that are outstanding, the interest rates on the bonds, and the retirement schedule for those bonds; the total number and principal amount of outstanding NJCLASS loans, and the total number and principal amount of NJCLASS loans contracted in the prior year; the total number of NJCLASS loans that are in default and the number that entered default in the prior year; the total number of loan collection lawsuits that have been filed under the program, and the number of loan collection lawsuits that were filed in the prior year and the status of those lawsuits; the number of requests filed in the prior year with the authority for the forgiveness of an NJCLASS loan due to the death or total and permanent disability of the borrower, the number of requests that were granted or denied, and the reasons for the denial of requests; the number of requests filed in the prior year with the authority for a loan deferment, the type of deferment requested by the borrower, the number of requests that were granted or denied, and the reasons for the denial of requests; and the number of forbearance requests filed in the prior year with the authority, the number of requests that were granted or denied, and the reasons for the denial of requests. L.2017, c.129, s.1.

N.J. Stat. § 18A:71C-21.2 Development of student loan comparison information document.

2. a. The authority shall develop a student loan comparison information document. The document shall provide information that allows a borrower to compare an NJCLASS loan with loans available under federal student loan programs including the federal PLUS loan program, and shall provide examples of loan repayment under each program. The information provided on the comparison document shall include, but need not be limited to, the following: (1) loan type, including loan term, interest rate whether fixed or variable, and annual percentage rate (APR); (2) repayment options, including the availability of income-contingent loan repayment options, and clear information on when repayment would begin and how that may be different from the federal student loan programs; (3) loan origination, administrative, and other fees over the life of the loan; (4) estimated cost of borrowing over the life of the loan and estimated monthly payment amounts for each loan type at each of six sample loan disbursement amounts; (5) availability of loan deferments, loan forbearance, and loan forgiveness, the reasons for which a deferment, a forbearance, or forgiveness may be requested, and the percentage of the requests that are granted; (6) the average annual default rates under each loan program, the average annual number of loan collection lawsuits filed under each program, and the availability of a loan rehabilitation program; and (7) the average annual number of wage garnishment orders issued under each program. b. The comparison information document shall be posted in a prominent location on the authority's website and shall be linked to the online application for an NJCLASS loan. A copy of the document shall be included with a paper NJCLASS loan application. The comparison information document shall be distributed at any financial aid workshop conducted by the authority for high school students or their parents and shall be included in any NJCLASS Loan Program promotional materials distributed by the authority. L.2017, c.129, s.2.

N.J. Stat. § 18A:71C-22 College loans to assist State Students Loan Fund.

18A:71C-22 College loans to assist State Students Loan Fund. a. The authority shall establish and maintain a special fund called the "New Jersey College Loans to Assist State Students (NJCLASS) Loan Fund" in which there shall be deposited: (1) all funds received by the authority from the sale of State bonds as provided by law; (2) all moneys appropriated by the State for the purpose of the fund; (3) all funds contributed to the authority by private sources, to be used for the purposes of this article; and (4) any other moneys or funds of the authority, including the proceeds of bonds, bond anticipation notes, and other obligations issued by the authority, which it determines to deposit therein. Moneys in the NJCLASS Loan Fund shall be held and applied to make loans pursuant to this article and to pay for the costs of administering the NJCLASS Loan Program. b. The sum total of all funds on deposit in the NJCLASS Loan Fund shall be maintained in the amount determined by the authority to be necessary to fulfill its responsibilities as set forth in this article. c. Moneys in the NJCLASS Loan Fund at any time in excess of the NJCLASS Loan Program requirements, whether by reason of investment or otherwise, may be withdrawn at any time by the authority and transferred to any other fund or account of the authority. d. Moneys at any time in the NJCLASS Loan Fund may be invested in any direct obligations of, or obligations as to which the principal and interest thereof is guaranteed by, the United States of America or such other obligations as the authority may approve. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-23 Eligible borrower.

18A:71C-23. Loans under the NJCLASS Loan Program may be made to eligible borrowers. An eligible borrower is an eligible student or any parent or legal guardian providing financial support for a dependent eligible student. The authority shall set maximum loan amounts for each participant based on such factors as the cost of attending the particular institution, family income, value of family assets or other factors the authority may consider relevant. The loans may be secured by such endorsement, co-maker's collateral or other security as may be required by rules and regulations established by the authority. When considering an application, the authority shall use appropriate documents to verify the financial information provided by an eligible borrower or cosigner. The documents that the authority may use to verify the financial information may include, but need not be limited to, certification by the applicants, recent federal income tax returns, current pay stubs, and current bank statements. amended 2017, c.198, s.1.

N.J. Stat. § 18A:71C-24 Eligible institution.

18A:71C-24. Eligible Institution. Unless restricted by the authority by regulations, "eligible institution" means, for the purposes of this article only, an institution of higher education licensed by the appropriate agency or department and accredited or preaccredited by a nationally recognized accrediting association. Eligible institutions shall also include certain proprietary institutions but only for degree granting programs approved by the commission or for other proprietary institutions as determined by the authority. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-25 Maximum loan amounts.

18A:71C-25. a. The authority shall establish maximum annual loan amounts and maximum total loan amounts which may be made under the NJCLASS Loan Program; however, the amount of a NJCLASS Loan Program loan may not exceed, in combination with other financial aid, the total education costs of attending an eligible institution as determined by that institution. b. In the case of a student borrower who first borrows under the NJCLASS Loan Program after the effective date of P.L.2017, c.198, the maximum total loan amount which may be made shall not exceed $150,000. The amount of the borrowing cap shall be increased for each academic year over the prior year by the regression-based index value of the Higher Education Price Index. The borrowing cap shall not apply to loans that are consolidating or refinancing existing loans. c. When establishing the maximum annual loan amount for a student borrower, the authority shall deduct the maximum amount of federal Direct Subsidized Loans available to the student from the available NJCLASS loan amount. If the available interest rate for federal Direct Unsubsidized Loans is lower than the interest rate available to the student under the NJCLASS Loan Program, the authority shall deduct the maximum amount of federal Direct Unsubsidized Loans available to the student from the available NJCLASS loan amount. amended 2017, c.198, s.2.

N.J. Stat. § 18A:71C-26 Accrual of interest; payment.

18A:71C-26. Accrual of Interest; Payment. Interest on each NJCLASS Loan Program loan shall accrue from the date of the making of the loan; however, the payment of the principal or the interest or both may be deferred until a time or times determined by the authority. The rate of interest on each loan shall be determined by the authority. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-27 Student eligibility.

18A:71C-27. Student Eligibility. a. Unless otherwise restricted by the authority by regulation, an eligible student under the NJCLASS Loan Program shall: (1) be a New Jersey resident enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution in New Jersey; or (2) be a New Jersey resident enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution outside of New Jersey; or (3) reside outside the State and be enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution in New Jersey. b. To be eligible for a NJCLASS loan financed in whole or in part by qualified student loan bonds, as described under section 144(b) of the Federal Internal Revenue Code of 1986, 26 U.S.C.s.144(b), the student in addition to meeting the requirements of subsection a. of this section, shall meet the eligibility criteria described in section 144(b) of the Federal Internal Revenue Code of 1986, 26 U.S.C.s.144(b), or not be in violation of any other criteria which would result in the bonds no longer to be qualified under section 144(b) of the Federal Internal Revenue Code of 1986, 26 U.S.C.s.144(b). L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-28 Limitations on program; fees.

18A:71C-28. Limitations on Program; Fees. a. The authority may limit the number of students who receive NJCLASS Loan Program loans for attendance at any educational institution with a default rate exceeding the standard which will be set by the authority. b. The authority may place a limitation upon the number of NJCLASS Loan Program loans made pursuant to this article, if, in its judgment, a limitation is necessary to preserve the fiscal viability of the fund. c. The authority may establish and collect a fee, to be paid by each eligible borrower under the NJCLASS Loan Program to assist in the support of the administration of the NJCLASS Loan Program by the authority and to assist in covering the cost of loan defaults. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-29 Certain actions prohibited concerning NJCLASS loans.

18A:71C-29. a. Unless expressly limited to federal programs, the information exchange, wage withholding, collection procedures, repayment determinations, and other provisions set forth under article 1 of this part shall apply to the NJCLASS Loan Program. b. Notwithstanding any provision of law to the contrary, in the case of any NJCLASS loan in default status, the authority shall not refer any borrower to the Department of the Treasury, Division of Taxation for Set-Off of Individual Liability or notify the department and the Division of the State Lottery to withhold a borrower's winnings pursuant to section 5 of P.L.1997, c.306 (C.5:9-13.14) if the authority and borrower have entered into a settlement agreement . c. Notwithstanding any provision of law to the contrary, any entity designated in section 2 of P.L.1978, c.73 (C.45:1-15), or any principal department in the Executive Branch of State government or any division, board, bureau, office, commission, or other instrumentality within or created by such a department, or any other entity created to license or otherwise regulate a profession or occupation, issuing any license, certification, or registration, shall not define a borrower's delinquent or default status on an NJCLASS loan as the basis for the denial, suspension, or revocation of the borrower's professional or occupational license, certification, or registration. L.2019, c.386, s.1.

N.J. Stat. § 18A:71C-30 Act not to affect higher education student assistance fund.

18A:71C-30. Act Not to Affect Higher Education Student Assistance Fund. Nothing in this article shall be construed to limit the power of the authority to establish and maintain the Higher Education Student Assistance Fund or to alter the terms and conditions of loans made to students under that fund. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-31 Falsely securing State loan; crime.

18A:71C-31. Falsely Securing State Loan; Crime. Any person who, having obtained a State loan under this act, solicits, applies for, or accepts another such loan, except as specifically authorized in this act, and any person who knowingly or willfully furnishes any false or misleading information for the purpose of obtaining a loan, or of enabling another to obtain a loan, under this act, shall be guilty of a crime of the fourth degree. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-31.1 Discharge of student loan in case of death of borrower.

1. a. In the event of the death of an eligible student borrower under the NJCLASS Loan Program, the authority shall fully discharge the obligation of the student borrower and a parent or guardian who cosigned the loan. b. The executor or administrator of the student borrower's estate shall provide written notification to the authority of the student borrower's death and shall provide the authority with a certified copy of the death certificate within 120 days of the student borrower's death. L.2016, c.71, s.1.

N.J. Stat. § 18A:71C-31.2 Discharge of student loan in case of total, permanent disability of borrower.

2. a. In the event that an eligible student borrower under the NJCLASS Loan Program becomes totally and permanently disabled, the authority shall fully discharge the obligation of the student borrower and a parent or guardian who cosigned the loan. To qualify for the loan discharge the student borrower shall provide the authority with a written statement from a physician, who is a doctor of medicine or osteopathy and is legally authorized to practice, certifying that the student borrower is totally and permanently disabled. b. As used in this section, "totally and permanently disabled" means the condition of a student borrower who is unable to work and earn money or attend school because of an injury or illness that is expected to continue indefinitely or result in death. A student borrower shall be considered totally and permanently disabled even if the student borrower continues to receive an equal or greater amount of income from the source of income that was used to meet the minimum income requirements at the time the loan was approved. L.2016, c.71, s.2.

N.J. Stat. § 18A:71C-31.3 Deferment of student loan payments due to temporary total disability.

3. a. In the event that an eligible student borrower under the NJCLASS Loan Program becomes temporarily totally disabled, the authority shall grant a deferment of payment of loan principal and interest. To qualify for the loan deferment, the student borrower shall provide the authority with a written statement from a physician, who is a doctor of medicine or osteopathy and is legally authorized to practice, certifying that the student borrower is temporarily totally disabled. The deferment shall begin on the date that the student borrower's temporary total disability is certified to begin and shall end on the date that the eligible student's temporary total disability is certified to end. Interest on the loan shall not accrue during the period of deferment. b. As used in this section, "temporary total disability" means that the student borrower is unable to work and earn money or attend school during the period needed to recover from the injury or illness. A student borrower shall be considered temporarily totally disabled even if the student borrower continues to receive an equal or greater amount of income from the source of income that was used to meet the minimum income requirements at the time the loan was approved. L.2016, c.71, s.3.

N.J. Stat. § 18A:71C-31.4 Repayment Assistance Program.

1. a. In order to assist borrowers who are facing economic hardships, the Higher Education Student Assistance Authority shall establish a Repayment Assistance Program for new loans originated under the Standard New Jersey College Loans to Assist State Students (NJCLASS) Loan Program beginning with the 2017-2018 academic year. Under the Repayment Assistance Program, eligible borrowers shall pay a reduced monthly loan payment equal to 10 percent of the total of the aggregate household income of all of the parties to the loan that exceeds 150 percent of the federal poverty guidelines, with a minimum monthly payment of $5. b. Subject to the limits of funding made available pursuant to section 3 of this act, a borrower shall be eligible to participate in the Repayment Assistance Program for a period not to exceed two years. During the period of participation in the Repayment Assistance Program, the authority shall pay the interest on the NJCLASS loan at the stated loan rate and the payments made by the borrower shall be applied to reduce the principal balance of the loan. At the end of the borrower's participation in the Repayment Assistance Program, the new monthly repayment amount shall be recalculated based on the remaining principal balance of the loan, interest accruing thereon at the original stated loan rate, and the remaining length of the original term to repay the loan. c. As used in this section, borrowers are determined to be facing an "economic hardship" if the monthly amount required to pay their Standard NJCLASS loans is higher than the monthly payment amount required under the Repayment Assistance Program established in this section. L.2019, c.62, s.1.

N.J. Stat. § 18A:71C-31.5 Household Income Affordable Repayment Plan.

2. a. To provide further assistance to borrowers who continue to face economic hardships after exhausting their eligibility for the Repayment Assistance Program, the Higher Education Student Assistance Authority shall establish a Household Income Affordable Repayment Plan for new loans originated under the Standard NJCLASS Loan Program beginning with the 2018-2019 academic year. Subject to the limits of funding made available pursuant to section 3 of this act, a borrower shall be eligible for the Household Income Affordable Repayment Plan upon exhausting the two-year eligibility period for the Repayment Assistance Program. Under the Household Income Affordable Repayment Plan, an eligible borrower shall be eligible to make reduced loan payments equal to 15 percent of the total of the aggregate household income of all of the parties to the loan that exceeds 150 percent of the federal poverty guidelines, with a minimum monthly payment of $25. b. Upon qualification for admittance to the Household Income Affordable Repayment Plan, the repayment term for a loan in the plan shall be extended to 25 years from the date of origination. Interest shall continue to accrue on the loan while in repayment under the plan at the original loan rate. Any remaining balance at the end of 25 years shall be forgiven. c. All parties to a loan shall provide the authority with annual income certification and proof of need to remain in the Household Income Affordable Repayment Plan. In the event that the parties to a loan no longer qualify for participation in the plan, the repayment term shall remain at 25 years and the monthly repayment amount shall revert to the standard monthly payment. Unpaid interest shall be capitalized upon return to the standard monthly payment. d. As used in this section, "standard monthly payments" are determined by the authority when parties enter the Household Income Affordable Repayment Plan by capitalizing all unpaid interest and amortizing the remaining loan balance over the remaining original loan repayment term. e. As used in this section, borrowers are determined to be facing an "economic hardship" if the monthly amount required to pay their Standard NJCLASS loans is higher than the monthly payment amount required under the Household Income Affordable Repayment Plan established in this section. L.2019, c.62, s.2.

N.J. Stat. § 18A:71C-31.6 Funding for programs included in bond indentures.

3. For new Standard NJCLASS loans financed in whole or in part by bonds issued by the authority pursuant to N.J.S.18A:71A-8, funding for the Repayment Assistance Program established pursuant to section 1 of this act and the Household Income Affordable Repayment Plan established pursuant to section 2 of this act shall be included as a provision in the applicable bond indentures. The programs shall be limited to the amounts included in the bond indentures and shall not infringe on the rights of bondholders established pursuant to N.J.S.18A:71A-19 and N.J.S.18A:71A-22. The number of borrowers who may participate in the Repayment Assistance Program and Household Income Repayment Plan shall be limited by the funding parameters set forth in any applicable bond indenture and any limitations or restrictions on amendments thereto. L.2019, c.62, s.3.

N.J. Stat. § 18A:71C-31.7 Regulations.

4. The Higher Education Student Assistance Authority shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of this act. L.2019, c.62, s.4.

N.J. Stat. § 18A:71C-31.8 NJCLASS loan determined to be in default; settlement agreement.

1. a. The authority may declare an NJCLASS loan program loan to be in default when the parties to the loan fail to meet the terms of the promissory note under circumstances where it is reasonable for the authority to determine that the parties no longer intend, or are no longer able, to honor the obligation to repay the loan or when the parties fail to make installment payments when due, provided failure to repay persists for: (1) at least 180 days when payments are due monthly; or (2) at least 240 days when payments are due less frequently than monthly. b. Upon default, parties may become liable for the entire balance of the loan. c. To facilitate recovery on a defaulted NJCLASS loan program loan, the authority shall offer parties to the defaulted loan the opportunity to enter into a settlement agreement, either pre- or post- judgement, based on the terms of the loan and the ability of the parties to the loan to make payments. (1) The authority's counsel shall respond to a request for a settlement agreement within 15 business days of the request. (2) The authority's counsel shall provide parties with a proposed written settlement agreement within 30 business days of reaching an oral agreement with the parties reflecting the agreed upon terms. (3) For an NJCLASS loan program loan financed in whole or in part by bonds issued by the authority pursuant to N.J.S.18A:71A-8, the terms of the settlement agreement shall not violate the terms of the applicable bond indentures. d. If parties to a defaulted NJCLASS loan program loan demonstrate to the authority an ability and willingness to repay the loan by making nine on-time monthly payments over the course of ten consecutive months pursuant to the settlement agreement, the loan shall be considered rehabilitated for the limited purposes of meeting the requirements of Title VI of the federal "Economic Growth, Regulatory Relief, and Consumer Protection Act," Pub.L.115-174. (1) If subsequent to rehabilitating the loan the parties fail to continue to honor the obligations of the settlement agreement for at least 180 days, the loan may no longer be considered rehabilitated. (2) A defaulted NJCLASS loan program loan may only be rehabilitated one time. e. The authority shall accurately report the status of defaulted loans to the credit bureaus pursuant to the federal "Fair Credit Reporting Act" (15 U.S.C. s.1681s-2) and Title VI of the federal "Economic Growth, Regulatory Relief, and Consumer Protection Act," Pub.L.115-174. L.2019, c.63, s.1.

N.J. Stat. § 18A:71C-32 Definitions.

18A:71C-32. "Approved site" means a site located within a State-designated underserved area or a health professional shortage area, or a clinic which is part of the extramural network of dental clinics established by the New Jersey Dental School of Rutgers, The State University, or a site that has been determined by the Higher Education Student Assistance Authority, in consultation with the Department of Health, to serve medically underserved populations according to criteria determined by the authority in accordance with section 17 of P.L.2025, c.345 (C. 18A:71C-35.1). "Authority" means the Higher Education Student Assistance Authority. "Eligible qualifying loan expenses" means the cumulative outstanding balance of student loans covering the cost of attendance at an institution of medical, dental, or other primary care professional education at the time an applicant is selected for the program. Interest paid or due on qualifying loans that an applicant has taken out for use in paying the costs of medical, dental, or other primary care professional education shall be considered eligible for reimbursement under the program. The total amount of qualifying loans which may be redeemed for participants under the program shall be $200,000 for participants employed at an approved site or the maximum amount authorized by the federal government, whichever is greater, either in State funds or the sum of federal, State, and other non-federal matching funds, pursuant to section 338I of the Public Health Service Act (42 U.S.C.s.254q-1), whichever is applicable. "Executive director" means the executive director of the Higher Education Student Assistance Authority. "Health professional shortage area" (HPSA) means an urban or rural area, a population group, or a public or non-profit private medical or dental facility or other public facility which the Secretary of Health and Human Services determines has a health professional shortage pursuant to section 332 of the Public Health Service Act (42 U.S.C. s.254e). “Medical, dental, or other primary care professional education” means the period of time between entry into medical school, dental school, or other primary care or medical professional training program and the award of a degree in allopathic or osteopathic medicine, dentistry, or another primary care profession, respectively. "Primary care" means the practice of family medicine, general internal medicine, general pediatrics, general obstetrics, gynecology, pediatric dentistry, general dentistry, public health dentistry, and any other areas of medicine or dentistry which the Commissioner of Health may define as primary care. Primary care also includes the practice of a nurse-practitioner, certified nurse-midwife, and physician assistant. "Primary care practitioner" means a State-licensed or certified health care professional who has obtained a degree in allopathic or osteopathic medicine, dentistry, or another primary care profession at an institution of medical, dental, or other primary care professional education, as applicable. "Program" means the Health Care Professional Loan Redemption Program established pursuant to N.J.S.18A:71C-33. "Program participant" means a practitioner who contracts with the authority to engage in the clinical practice of primary care, psychiatry, or other qualifying health care field at an approved site in exchange for the redemption of eligible qualifying loan expenses provided under the program. "Qualifying loan" means a government or commercial loan for the actual costs paid for tuition and reasonable education and living expenses relating to the obtaining of a degree in allopathic or osteopathic medicine, dentistry, or another primary care profession. "State-designated medically underserved area" means a geographic area in this State which has been ranked by the Commissioner of Health on the basis of health status and economic indicators as reflecting a medical or dental health professional shortage, in consultation with the Commissioner of Human Services; or a municipality with a medically underserved area or population designation reflecting health status and economic indicators as determined by the United States Health Resources and Services Administration. "Total and permanent disability" means a physical or mental disability that is expected to continue indefinitely or result in death and renders a participant in the program unable to perform that person's service obligation, as determined by the executive director or a designee. amended 2009, c.145, s.1; 2012, c.45, s.99; 2025, c.345, s.1.

N.J. Stat. § 18A:71C-33 Primary care practitioner loan redemption program established.

18A:71C-33. There is established a Health Care Professional Loan Redemption Program within the Higher Education Student Assistance Authority. The program shall provide for the redemption of a portion of the eligible qualifying loan expenses of program participants for each year of service at an approved site. Amended 2009, c.145, s.2; 2025, c.345, s.2.

N.J. Stat. § 18A:71C-34 Eligibility for participation in program.

18A:71C-34. To be eligible to participate in the program, an applicant shall: a. be a resident of the State; b. be a primary care practitioner, psychiatrist, or other health care professional designated by the Commissioner of Health pursuant to section 16 of P.L.2025, c.345 (C.18A:71C-34.1) for inclusion in the program; and c. (Deleted by amendment, P.L.2009, c.145) d. agree to practice primary care, psychiatry, or other qualifying medical care, as appropriate, at an approved site under the terms and conditions provided in N.J.S.18A:71C-36 and the agreement issued thereunder. Amended 2009, c.145, s.3; 2025, c.345, s.3.

N.J. Stat. § 18A:71C-34.1 Designation of additional health care fields.

16. The Commissioner of Health, after consultation with the Commissioner of Labor and Workforce Development and the Director of the Division of Consumer Affairs, may designate additional health care fields experiencing critical Statewide labor shortages for inclusion in the program. L.2025, c.345, s.16.

N.J. Stat. § 18A:71C-35 Ranking of State designated underserved areas.

18A:71C-35. The Commissioner of Health, after consultation with the Commissioner of Human Services, shall designate and establish a ranking of State-designated underserved areas, including both professional shortage areas and medically underserved areas. The criteria used by the Commissioner of Health in designating areas shall include, but not be limited to: a. the financial resources of the population under consideration, including the percentage of the population that is eligible for medical assistance pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) and P.L.2005, c.156 (C.30:4J-8 et seq.), and the percentage of the population that does not have health insurance coverage; b. the population's access to primary care, psychiatry, and other medical services; c. appropriate physician, dentist, psychiatrist, or other primary care staffing in State, county, municipal, and private nonprofit health care facilities and in clinics which are part of the extramural network of dental clinics established by the New Jersey Dental School of Rutgers, The State University; and d. the extent to which racial and ethnic disparities in health care in a geographic area, including, but not limited to, disparities in the incidence of cancer, cardiovascular disease, stroke, chemical dependency, diabetes, asthma, homicide, suicide, accidental injury, infant mortality, child immunization rates, HIV/AIDS, dental caries, and periodontal disease, indicate the need to increase access to health care services among racial and ethnic minority populations in that area. The Commissioner of Health shall transmit the list of State-designated medically underserved areas and the number of positions needed in each area to the executive director or designee by January 1 of each year. The Commissioner of Human Services shall transmit the total percentage of Medicaid enrollees in each county as required by paragraph (3) of subsection a. of section 17 of P.L.2025, c.345 (C.18A:71C-35.1) to the executive director or designee by January 1 of each year. amended 2009, c.145, s.4; 2012, c.45, s.100; 2025, c.345, s.4.

N.J. Stat. § 18A:71C-35.1 Criteria for an approved site.

17. a. A site shall automatically be deemed an approved site if the site: (1) is located within a State-designated underserved area or a health professional shortage area, or is a clinic which is part of the extramural network of dental clinics established by the New Jersey Dental School of Rutgers, The State University, or is determined by the Higher Education Student Assistance Authority, in consultation with the Department of Health, to serve medically underserved populations; (2) participates in the Medicaid and Medicare programs; however, the authority shall not require participation in more than one Medicaid Managed Care organization; (3) in a county in which less than 30 percent of the population are Medicaid enrollees, the site serves medically underserved populations at a rate equal to or greater than the percentage of residents of the county who are Medicaid enrollees, and in a county in which 30 percent or more of the population are Medicaid enrollees, the site serves medically underserved populations at a rate equal to or greater than 80 percent of the percentage of residents of the county who are Medicaid enrollees; (4) uses a sliding fee scale for patients falling under 250 percent of the federal poverty level who are uninsured or underinsured; and (5) does not discriminate against any patient in the provision of health care services on the basis of that person’s ability to pay or source of payment. b. If a site is unable to demonstrate that it serves medically underserved populations as required pursuant to paragraph (3) of subsection a. of this section, the authority may approve a site if the site: (1) meets each requirement outlined in subsection a. of this section except for the requirement outlined in paragraph (3) of subsection a. of this section; and (2) is accepting and serving new Medicaid patients. c. The authority shall not require any additional site eligibility requirements. L.2025, c.345, s.17.

N.J. Stat. § 18A:71C-35.2 Information for publication on authority website.

5. The authority shall annually publish on its Internet website: a. the list of State-designated medically underserved areas and the number of positions needed in each area as determined pursuant to N.J.S.18A:71C-35 as transmitted by the Commissioner of Health; b. the total percentage of Medicaid enrollees in each county as required by paragraph (3) of subsection a. of section 17 of P.L.2025, c.345 (C.18A:71C-35.1), as transmitted by the Commissioner of Human Services; and c. any other sources for criteria utilized by the authority to review and evaluate loan recipients’ or approved sites’ applications for the Health Care Professional Loan Redemption Program established pursuant to N.J.S.18A:71C-33. L.2025, c.345, s.5.

N.J. Stat. § 18A:71C-36 Entry into program; agreements.

18A:71C-36. a. In administering the program, the authority or its designated agent shall contract only with a primary care practitioner, psychiatrist, or other health care practitioner employed in a field designated by the Commissioner of Health for inclusion in the program pursuant to section 16 of P.L.2025, c.345 (C.18A:71C-34.1). b. The contract for a program participant employed at an approved site shall require a program participant to: (1) serve at least an initial two-year period at an approved site in the full-time clinical practice of that person's profession; (2) charge for professional services at the usual and customary rate prevailing in the area in which the approved site is located, but allow a patient who is unable to pay that charge to pay at a reduced rate or receive care at no charge; (3) not discriminate against any patient in the provision of health care services on the basis of that person's ability to pay or source of payment; and (4) agree not to impose any charge in excess of the limiting fee for a service, as determined by the United States Secretary of Health and Human Services, to a recipient of benefits under the federal Medicare program established pursuant to Pub.L.89-97 (42 U.S.C.s.1395 et seq.). c. The contract for any program participant shall also specify the applicant's dates of required service and the total amount of eligible qualifying loan expenses to be redeemed by the State in return for service, and stipulate that the applicant has knowledge of and agrees to the six-month probationary period required prior to final acceptance into the program pursuant to N.J.S.18A:71C-38. Amended 2009, c.145, s.5; 2025, c.345, s.6.

N.J. Stat. § 18A:71C-36.1 Performance standards for program participants.

10. a. A program participant, as a condition of participation, shall be required to adhere to performance standards established by the executive director or a designee, and if the program participant is employed at a clinic which is part of the extramural network of dental clinics established by the New Jersey Dental School of Rutgers, The State University, the program participant shall also meet performance standards set by the New Jersey Dental School. b. The standards shall include, but not be limited to, requirements that a participant: (1) maintain residency in the State; (2) maintain a license or certification to practice a primary care profession, psychiatry, or other qualifying health care profession in the State; (3) remain current with payments on student loans; (4) enter into a mutually acceptable contract with an approved site; (5) maintain satisfactory performance of services rendered; and (6) report to the authority or its designee, on a form and in a manner prescribed by the authority or its designee, on the program participant's performance of services rendered prior to repayment of the annual amount eligible for redemption. L.2009, c.145, s.10; amended 2012, c.45, s.101; 2025, c.345, s.7.

N.J. Stat. § 18A:71C-37 Redemption limits; service.

18A:71C-37. a. Maximum redemption of loans under the loan redemption program shall amount to 18 percent of principal and interest of eligible qualifying loan expenses in return for one full year of service at an approved site, an additional 26 percent for a second full year of service, an additional 28 percent for a third full year of service, and an additional 28 percent for a fourth full year of service for a total redemption of eligible qualifying loan expenses of up to, but not to exceed, $200,000 for service at an approved site, or the maximum amount authorized by the federal government, whichever is greater, either (1) in State funds or (2) the sum of federal, State, and other non-federal funds pursuant to section 338I of the Public Health Service Act (42 U.S.C.s.254q-1), whichever is applicable. No amount of eligible qualifying loan expenses shall be redeemed for services performed for less than a full year. b. A participant who enters an agreement to fulfill service in a State-designated underserved area that is also a HPSA shall be permitted a total redemption of eligible qualifying loan expenses for four years of service up to, but not to exceed, the sum of federal, State and other non-federal matching funds provided pursuant to section 338I of the Public Health Service Act (42 U.S.C.s.254q-1). c. A program participant who enters an agreement to fulfill service in a State-designated underserved area that is not also a HPSA shall be permitted a total redemption of eligible qualifying loan expenses for four years of service up to, but not to exceed, $200,000, or the maximum amount authorized by the federal government, whichever is greater, in State funds. d. A program participant who has engaged in full-time clinical practice during the participant's initial two years of participation in the program shall be permitted to fulfill the program participant's subsequent service obligations on a part-time basis with the approval of the authority or its designee and the program participant's employer in a State-designated underserved area, with the program participant's redemption credit accruing on a pro rata basis. The program participant may be permitted a total redemption of eligible qualifying loan expenses for the equivalent of four years of full-time service. Amended 2009, c.145, s.6; 2025, c.345, s.8.

N.J. Stat. § 18A:71C-37.1 Reimbursement payments for tax liability of participant.

16. The executive director or his designee may, within the limits of available funds and in accordance with eligibility criteria determined by the executive director or his designee, make payments in a reasonable amount, as determined by the executive director or his designee, to reimburse a program participant for all or part of any increased tax liability incurred by the participant, pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., which results from the redemption of eligible qualifying loan expenses under the program. L.2009, c.145, s.16.

N.J. Stat. § 18A:71C-38 Probationary period.

18A:71C-38. Each program participant shall serve a six-month probationary period upon initial placement at an approved site. During that period, the supervisory staff of the approved site, or in the case of a clinic which is part of the extramural network of dental clinics established by the New Jersey Dental School of Rutgers, The State University, the director of the clinics and the vice-dean of the dental school, together with the program participant and the executive director or a designee, shall evaluate the suitability of the placement for the program participant. At the end of the probationary period, the supervisory staff shall recommend the continuation of the program participant's present placement, a change in placement, or its determination that the program participant is an unsuitable candidate for the program. If the supervisory staff of the approved site recommends a change in placement, the executive director or a designee shall approve an alternate placement at an approved site. If the supervisory staff determines that the program participant is not a suitable candidate for the program, the executive director or a designee shall take this recommendation into consideration in regard to the program participant's final acceptance into the program. No loan redemption payment shall be made during the six-month probationary period; however, a program participant shall receive credit for the six-month period in calculating the first year of required service under the loan redemption contract. amended 2009, c.145, s.7; 2012, c.45, s.102; 2025, c.345, s.9.

N.J. Stat. § 18A:71C-39 Matching of participants with areas.

18A:71C-39. The executive director or a designee, in consultation with the Commissioner of Health, shall assist program applicants and participants in identifying an approved site. A program applicant or participant may identify a proposed site for designation as an approved site, provided that the site meets the criteria established pursuant to section 17 of P.L.2025, c.345 (C. 18A:71C-35.1). Nothing in this act shall prohibit a program applicant or participant from identifying an approved site for designation and approval under the program. Amended 2009, c.145, s.8; 2025, c.345, s.10.

N.J. Stat. § 18A:71C-40 Selection of participants; priority.

18A:71C-40. The executive director or a designee shall select the program participants from among those applicants who meet the eligibility criteria established pursuant to N.J.S.18A:71C-34, subject to available funds and available approved sites, as applicable. In the event that there are insufficient funds or approved sites to select all of the applicants who meet the eligibility criteria, the executive director or a designee shall accord priority to applicants in the following manner: a. first, to any applicant who is employed by or has an offer of employment at an approved site; b. second, to any applicant according to the severity of the health care provider shortage in the area selected by the applicant; c. third, to any applicant whose residence in the State at any time prior to initiating an application was within a State-designated underserved area ; d. fourth, to any applicant whose approved site is a community-based ambulatory healthcare practice, which includes practices operated by a private entity that provide comprehensive pediatric care, behavioral health care, preventative care, or primary care health services; e. fifth, to any applicant whose approved site is a hospital-affiliated practice or clinic that provides comprehensive pediatric care, behavioral health care, preventative care, or primary care services; and f. sixth, to any applicant who graduated from a high school or institution of higher education in the State or completed a medical residency in the State. In the event that there are more applicants who have the same priority than there are program positions, the executive director or a designee shall select program participants by means of a lottery or other form of random selection. Amended 2009, c.145, s.9; 2025, c.345, s.11.

N.J. Stat. § 18A:71C-41 Nullification of agreement.

18A:71C-41. A program participant who has previously entered into a contract with the authority may nullify the agreement by notifying the authority in writing and reassuming full responsibility for the remaining outstanding balance of the loan debt. In no event shall service for less than the full calendar year of each period of service entitle the program participant to any benefits under the program. A program participant seeking to nullify the contract before completing a second full year of service shall be required to pay 50 percent of the redeemed portion of indebtedness in not more than one year following nullification of the agreement. Amended 2009, c.145, s.11; 2025, c.345, s.12.

N.J. Stat. § 18A:71C-42 Death or permanent disability of participant.

18A:71C-42. In case of a program participant's death or total and permanent disability, the authority or its designee shall nullify the service obligation of the program participant. The nullification shall terminate the authority's obligations under the loan redemption contract, except in the event that a program participant's death or total and permanent disability occurs during the second year of service, the authority shall not require repayment of the prior redeemed portion of indebtedness. When continued enforcement of the contract may result in extreme hardship, the authority or its designee may nullify or suspend the service obligation of the program participant. Amended 2009, c.145, s.12.

N.J. Stat. § 18A:71C-43 Conviction of crime; gross negligence; breach of performance standards; failure to repay; penalties.

18A:71C-43. a. In the case of: (1) a program participant's conviction of a crime or an act of gross negligence in the performance of service obligations; (2) suspension or revocation of the program participant's license or certification to practice; or (3) a program participant's breach of the performance standards established pursuant to section 10 of P.L.2009, c.145 (C.18A:71C-36.1); the executive director or his designee is authorized to terminate the program participant's service in the program. b. A program participant who fails to repay an amount due the authority under the program may be subject to actions initiated by the authority or its designee, which may include, but are not limited to, recovery of the amount due by an action brought in a court of competent jurisdiction or through the offset of State tax refunds or rebates, making this information available to credit reporting agencies, and exclusion from eligibility for any student assistance benefits administered by the authority, as well as action by the federal government, to the extent that loan redemption benefits are federally funded, to recover any amount due it as permitted by federal law. In any action brought by the authority or its designee in a court of competent jurisdiction pursuant to this subsection, the program participant shall be liable for: the debt incurred, interest on the debt at the maximum legal prevailing rate as determined by the United States Treasurer, and the administrative and court costs associated with collection of the debt. Amended 2009, c.145, s.14.

N.J. Stat. § 18A:71C-43.1 False, misleading information, fourth degree crime.

13. A person who knowingly or willfully furnishes any false or misleading information for the purpose of receiving loan redemption benefits under the program is guilty of a crime of the fourth degree. L.2009, c.145, s.13.

N.J. Stat. § 18A:71C-44 National Health Service Corps Loan Repayment Program participants ineligible.

18A:71C-44. A student who is participating in the federally administered National Health Service Corps Loan Repayment Program, section 338B of the Public Health Service Act (42 U.S.C.s.254 l-1), shall not be eligible to participate simultaneously in the Health Care Professional Loan Redemption Program. Amended 2009, c.145, s.15; 2025, c.345, s.13.

N.J. Stat. § 18A:71C-46 Recruitment.

18A:71C-46. Recruitment. The executive director or designee and the Commissioner of Health and Senior Services, in cooperation with their designated agent, shall together establish a procedure for the recruitment of program applicants at medical and dental schools and health centers. The procedure shall provide for the participation of the medical and dental staff, as appropriate, of those facilities in the selection of appropriate applicants for the program. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-46.1 Availability of information.

18. The authority shall work with State institutions of medical, dental, and other health care professional education to ensure that information on the Health Care Professional Loan Redemption Program is made available to students upon enrollment. L.2009, c.145, s.18; amended 2025, c.345, s.14.

N.J. Stat. § 18A:71C-47 Federal funds.

18A:71C-47. Federal Funds. The authority shall annually apply for any federal funds which may be available to implement the provisions of this act. L.1999,c.46,s.1.

N.J. Stat. § 18A:71C-48 Rules and regulations.

The authority shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to implement the provisions of N.J.S.18A:71C-32 through N.J.S.18A:71C-47 and section 17of P.L.2025, c.345 (C.18A:71C-35.1). L.1999,c.46,s.1; amended 2025, c.345, s.20.

N.J. Stat. § 18A:71C-48.1 Annual report requirements.

18. The authority shall annually submit a report on the Health Care Professional Loan Redemption Program established pursuant to N.J.S.18A:71C-32 et seq. to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The report shall be submitted no later than August 1 of each year and shall include, but not be limited to, the following information for the prior fiscal year: a. the total number of participants receiving loan redemption under the program; b. the total amount of loan redemption provided through the program; c. a profile of program participants, including demographic information and medical specialty, information on the employers of program participants, including if a participant’s approved site contracts with a State entity, and the last institution of higher education from which the participant received a degree; d. the average annual loan redemption amount and the five-year average loan redemption amount of program participants; e. the total number of health care professionals who have completed the program and remain licensed to practice in the State, including information on if a health care professional who completed the program is employed in a medically underserved community; and f. the effect of the program on meeting the demand for labor in primary care, psychiatry, and other qualifying health care fields in the State. L.2025, c.345, s.18.

N.J. Stat. § 18A:71C-49 OB/GYN student loan expense reimbursement program.

29. a. There is established a student loan expense reimbursement program within the Higher Education Student Assistance Authority for obstetrician/gynecologists who agree to practice in State designated underserved areas as established pursuant to section 1 of P.L.1999, c.46 (C.18A:71C-35). Any loans provided through the NJCLASS Loan Program pursuant to P.L.1999, c.46 (C.18A:71C-21 et seq.) or a student loan program of the federal government shall be eligible for reimbursement under this program. The authority shall implement the program in consultation with the Commissioners of Banking and Insurance and Health and Senior Services and the State Board of Medical Examiners. b. (1) An obstetrician/gynecologist who receives a payment under the student loan expense reimbursement program shall be required to practice as an obstetrician/gynecologist in an underserved area in this State for a period of at least four years after receipt of the payment. (2) An obstetrician/gynecologist who fails to comply with the provisions of paragraph (1) of this subsection shall be required to repay to the Higher Education Student Assistance Authority the amount of the payment, in whole or in part as determined by the authority. c. The authority shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this section, including, but not limited to: eligibility for the program, procedures for application, selection of participants, establishment and nullification of contracts established with participants under the program, and reports to the program by participants. L.2004,c.17,s.29.

N.J. Stat. § 18A:71C-50 Short title.

1. This act shall be known and may be cited as the "Nursing Faculty Loan Redemption Program Act." L.2009, c.236, s.1.

N.J. Stat. § 18A:71C-51 Findings, declarations relative to the Nursing Faculty Loan Redemption Program.

2. The Legislature finds and declares that: a. This State is experiencing a critical shortage in its nursing workforce, which is expected to worsen in the next two decades. In New Jersey, as well as nationwide, the shortage of faculty in schools of nursing is reaching crisis proportions. Insufficient numbers of faculty hinder schools' efforts to increase their capacity. b. According to projections by the Health Resources and Services Administration of the federal Department of Health and Human Services, New Jersey is estimated to be 49% below demand, resulting in a shortfall of 42,400 registered professional nurse full-time equivalent positions throughout the State by 2020. c. The demand for nurses at all levels of training and in all health care settings, including hospitals, nursing homes, veterans' homes and home health care and community-based programs, is increasing as the population gets older. Recent data from schools of nursing in New Jersey show that there is an increased interest in nursing by potential students; 67% of schools of nursing in the State turned away qualified student applicants and 57% report numbers of enrollments greater than their current capacity to educate students. d. The average age of New Jersey's registered professional nurses and licensed practical nurses is increasing each year; in 2007 54.4% of the State's registered professional nurses were between 46 and 60 years of age and 13.3% were more than 60 years of age; 29% of non-retired registered professional nurses were older than 55 years of age. These findings indicate that, assuming the majority of nurses retire at 65 years of age, the State will need to replace one third of its nursing workforce over the next 10 years. e. The number of full-time faculty positions currently budgeted in New Jersey's schools of nursing totals 575 full-time equivalents. Of these, six percent, or 35 full-time equivalents, were vacant in October 2004; 54% of the nursing schools in the State reported faculty vacancies. f. The faculty shortage is part of the larger picture and all areas must be addressed as nurses are vital to the public's health. Research indicates that without sufficient numbers of well-qualified nurses, patients' lives and well-being are at increased risk. The minimum educational requirement of a nursing instructor according to the New Jersey Board of Nursing regulations is a master's degree in nursing (MSN). For nursing faculty in the State's 13 associate degree programs in community colleges and 11 diploma programs in hospitals, a MSN is required. Many schools also require that faculty be certified in the specialty practice area in which they teach. L.2009, c.236, s.2.

N.J. Stat. § 18A:71C-52 Definitions relative to the Nursing Faculty Loan Redemption Program.

3. As used in this act: "Approved graduate degree program" means a master's degree in nursing (MSN), a doctor of nursing science degree (DNS), a doctor of nursing practice degree (DPN), a doctor of philosophy degree (PhD) in nursing or another relevant field of study. "Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3. "Eligible student loan expenses" means the cumulative total of the annual student loans covering the cost of attendance at an approved graduate degree program. Interest paid or due on student loans that an applicant has taken out for use in paying the costs of such education shall be considered eligible for reimbursement under the program. "Participant" means a person who has completed an approved graduate degree program at an accredited public or independent institution of higher education, and who participates in the program. "Program" means the Nursing Faculty Loan Redemption Program established pursuant to this act. L.2009, c.236, s.3.

N.J. Stat. § 18A:71C-53 Nursing Faculty Loan Redemption Program established.

4. a. There is established within the Higher Education Student Assistance Authority the Nursing Faculty Loan Redemption Program. The purpose of the program is to address the current and projected critical shortage of nursing faculty in the State by providing an incentive for persons to enter graduate nursing education programs and for persons already trained as nurses to advance their training in the profession so as to ensure that sufficient numbers of nursing faculty are available to train nursing students, and the State's hospitals, nursing homes, veterans' facilities and home care services and community care programs will have sufficient, trained nursing staff in the future to provide quality health care services to the residents of this State. The program shall provide loan redemption in exchange for full-time and part-time faculty employment at a school of nursing in the State for a five-year period. b. In developing the program, the authority shall collaborate with the Robert Wood Johnson Foundation New Jersey Nursing Initiative and such other entities as the authority deems appropriate. L.2009, c.236, s.4; amended 2023, c.244, s.1.

N.J. Stat. § 18A:71C-54 Eligibility for participation in program.

5. To be eligible to participate in the program, an applicant shall: a. be a resident of the State and maintain domicile in the State during participation in the program; and b. (1) have obtained a master's degree in nursing (MSN), a doctor of nursing science degree (DNS), a doctor of nursing practice degree (DNP), a doctor of philosophy degree (PhD) in nursing or another relevant field of study and be employed in a faculty position, including an adjunct faculty position; and (2) have maintained a grade point average of 3.0 or higher on a scale of 4.0, or its equivalent, while enrolled in an approved graduate degree program. L.2009, c.236, s.5; amended 2023, c.244, s.2.

N.J. Stat. § 18A:71C-55 Application to authority for loan redemption.

6. a. A graduate nursing student or graduate may apply to the authority for a loan redemption in such manner as prescribed by the authority. b. A program participant shall enter into a written contract with the authority to participate in the program. The contract shall specify the duration of the applicant's required service and the total amount of eligible student loan expenses to be redeemed by the authority in return for service. c. A participant who has entered into a redemption contract with the authority may nullify that contract by submitting written notification to the authority and assuming full responsibility for repayment of the full amount of the loan or that portion of the loan that has not been redeemed by the State in return for partial fulfillment of the contract. d. In the case of a participant's death or total or permanent disability, the authority shall nullify the service obligation of the participant; or where continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the participant's service obligation. L.2009, c.236, s.6.

N.J. Stat. § 18A:71C-55.1 Nursing Faculty Loan Redemption Program, shall not exceed $50,000 per program participant.

3. a. For each year of full-time faculty employment at an eligible institution, the program shall provide $10,000 to a program participant, up to a maximum five years, for the redemption of eligible student loan expenses. Loan redemption amounts for program participants who do not have full-time faculty employment shall be awarded on a pro-rata basis. The total loan redemption amount for a program participant shall not exceed $50,000. As used in this subsection, "full-time faculty employment" means employment with a faculty load of 12 or more academic credits in each of two semesters in an academic year. b. No amount of loan redemption shall be provided for service performed for less than a full year. Loan redemption shall be applied first to outstanding State loans and then to outstanding Federal loans. L.2023, c.244, s.3.

N.J. Stat. § 18A:71C-55.2 Higher Education Student Assistance Authority, Nursing Faculty Loan Redemption Program, information, awareness promotion.

4. a. The Higher Education Student Assistance Authority shall work with schools of nursing in the State to provide information on the Nursing Faculty Loan Redemption Program to students upon enrollment. b. The authority shall work with hospitals and medical centers, professional associations, and schools of nursing in the State to promote awareness of the Nursing Faculty Loan Redemption Program and the value of graduate nursing education programs, among active and retired nurses and others interested in the nursing profession. L.2023, c.244, s.4.

N.J. Stat. § 18A:71C-56 Annual report on the program.

7. The authority shall annually submit to the Governor, and pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the chairman of the Senate Budget and Appropriations Committee, the chairman of the Assembly Appropriations Committee, the chairmen of the Senate and Assembly Education Committees, and the chairmen of the Senate and Assembly Health Committees, a report on the program. The report shall be submitted no later than August 1 of each year and shall include, but not be limited to, the following information for the prior fiscal year: a. the total number of participants receiving loan redemption under the program; b. the total number of participants who withdrew from the program or failed to complete the program's employment requirement; and c. the effect of the program on filling vacant nursing faculty positions in the State and eliminating the need to turn away qualified nursing school applicants. L.2009, c.236, s.7.

N.J. Stat. § 18A:71C-57 Rules, regulations.

8. The Higher Education Student Assistance Authority shall adopt, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act. L.2009, c.236, s.8.

N.J. Stat. § 18A:71C-59 Definitions relative to tuition reimbursement for certain psychiatrists.

1. As used in this act: "Authority" means the Higher Education Student Assistance Authority. "Eligible tuition expenses" means tuition expenses that were incurred by a program participant in attending an accredited medical school and which were not covered by any grants or scholarships. "Program" means the tuition reimbursement program for psychiatrists established pursuant to this act. "Program participant" means a psychiatrist who contracts with the authority to provide mental health care services in a State underserved area or in a State psychiatric hospital in return for tuition reimbursement provided under the program. "State psychiatric hospital" means a State psychiatric hospital operated by the Department of Human Services and listed in R.S.30:1-7. "State underserved area" means a geographic area in this State which the Commissioner of Health, in consultation with the Commissioner of Human Services, determines on the basis of health status and economic indicators as having a physician shortage in the specialty of psychiatry. L.2017, c.126, s.1.

N.J. Stat. § 18A:71C-60 Tuition reimbursement for certain psychiatrists.

2. a. There is established in the Higher Education Student Assistance Authority a tuition reimbursement program for psychiatrists who provide mental health care services in a State underserved area or in a State psychiatric hospital. The program shall provide reimbursement to program participants for a portion of the eligible tuition expenses incurred by the participant in attending medical school. b. A program participant shall enter into a contract with the authority for a specified number of one-year periods of service, up to four years, in which the participant agrees to engage in the full-time practice of psychiatry in a State underserved area or in a State psychiatric hospital. The agreement shall specify the program participant's dates of required service and the total amount of reimbursement of eligible tuition expenses to be received by the participant in return for service. c. The tuition reimbursement for a participant under the program shall equal 25 percent of the participant's eligible tuition expenses for the one academic year of medical school attendance in which tuition was the lowest, in return for each full year of service satisfactorily completed by the participant under the program. The total tuition reimbursement amount for a program participant, for four full years of service, shall not exceed 100 percent of the participant's eligible tuition expenses for the one academic year of medical school attendance in which tuition was the lowest. L.2017, c.126, s.2.

N.J. Stat. § 18A:71C-61 Eligibility for program.

3. To be eligible to participate in the program, an applicant shall: a. be a resident of New Jersey; b. be a State-licensed physician who has successfully completed all educational and residency training requirements for the practice of psychiatry; c. apply for the program within one year of completing an accredited residency training program in psychiatry, or within one year of completing an accredited fellowship in child and adolescent psychiatry; and d. agree to practice full-time as a psychiatrist in a State underserved area or in a State psychiatric hospital for a period of one to four years in return for the tuition reimbursement provided under the program. L.2017, c.126, s.3.

N.J. Stat. § 18A:71C-62 Designation of underserved areas, list of available positions in State psychiatric hospitals.

4. a. The Commissioner of Health, in consultation with the Commissioner of Human Services, shall designate State underserved areas which have a shortage of psychiatrists. In designating State underserved areas, the commissioner shall consider health status criteria and economic indicators including, but not limited to, the financial resources of the population who resides in the area under consideration, and the population's access to mental health care services. b. The Commissioner of Health shall transmit to the authority a list of the State underserved areas and the projected number of psychiatrists needed in each area. c. The Commissioner of Human Services shall transmit to the authority a list of the State psychiatric hospitals and the projected number of psychiatrists needed in each hospital. L.2017, c.126, s.4.

N.J. Stat. § 18A:71C-63 Contract for program participant.

5. The contract entered into between a program participant and the authority pursuant to section 2 of this act shall require a program participant to: a. charge for professional services at the usual and customary rate prevailing in the State underserved area, but allow a patient who is unable to pay that charge to pay at a reduced rate or receive care at no charge; b. not discriminate against any patient in the provision of mental health care services on the basis of that person's ability to pay or source of payment; and c. agree not to impose any charge in excess of the limiting fee for a service, as determined by the United States Secretary of Health and Human Services, to a recipient of benefits under the federal Medicare program established pursuant to Pub.L.89-97 (42 U.S.C. s.1395 et seq.). L.2017, c.126, s.5.

N.J. Stat. § 18A:71C-64 Performance standards.

6. A program participant, as a condition of participation, shall be required to adhere to performance standards established by the authority. The standards shall include, but not be limited to, requirements that a program participant: a. maintain residency in the State; b. maintain a license to practice medicine in the State; c. remain current with payments on any student loans; d. maintain satisfactory performance of services rendered in a State underserved area or in a State psychiatric hospital; and e. report to the authority, on a form and in a manner prescribed by the authority, on the program participant's performance of services rendered prior to reimbursement of tuition under the program. L.2017, c.126, s.6.

N.J. Stat. § 18A:71C-65 Ineligibility.

7. An individual who is participating in the Health Care Professional Loan Redemption Program, N.J.S.18A:71C-32 et seq., or in the federally administered National Health Service Corps Loan Repayment Program, section 338B of the Public Health Service Act (42 U.S.C. s.254l-1), shall not be eligible to participate simultaneously in the tuition reimbursement program for psychiatrists established pursuant to section 2 of P.L.2017, c.126 (C.18A:71C-60). L.2017, c.126, s.7; amended 2025, c.345, s.17.

N.J. Stat. § 18A:71C-66 Definitions relative to the STEM Loan Redemption Program.

1. As used in this act: "Approved STEM degree program" means an undergraduate or advanced degree program, approved by the Higher Education Student Assistance Authority, for persons engaged in a designated high-growth STEM occupation pursuant to section 2 of this act. "Authority" means the Higher Education Student Assistance Authority. "Eligible qualifying loan expenses" means the cumulative outstanding balance of qualifying student loans, including interest paid or due, covering the cost of attendance at an institution of higher education for an undergraduate or advanced degree from an approved STEM degree program. "Executive director" means the executive director of the Higher Education Student Assistance Authority. "Program" means the STEM Loan Redemption Program established pursuant to section 2 of this act. "Program participant" means a person who contracts with the authority to engage in a designated high-growth STEM occupation in exchange for the redemption of eligible qualifying loan expenses provided under the program. "Qualifying student loan" means a State or federal loan for the actual costs paid for tuition and reasonable education and living expenses relating to obtaining a degree in an approved STEM degree program. "Total and permanent disability" means a physical or mental disability that is expected to continue indefinitely or result in death and renders a program participant unable to perform that person's employment obligation, as determined by the executive director or his designee. L.2018, c.142, s.1.

N.J. Stat. § 18A:71C-67 STEM Loan Redemption Program.

2. a. There is established a STEM Loan Redemption Program within the Higher Education Student Assistance Authority. The program shall provide $1,000 to program participants for each year of employment in a designated high-growth STEM occupation, up to a maximum of four years, for the redemption of a portion of their eligible qualifying loan expenses. b. The designated high-growth STEM occupations for the initial two years of the program are: (1) Operations research analyst; (2) Statistician; (3) Mathematician; (4) Software developer, applications; (5) Web developer; (6) Computer systems analyst; (7) Biomedical engineer; (8) Computer and information systems manager; (9) Geological and petroleum technician; (10) Geoscientist, except hydrologist and geographer; (11) Environmental engineer; (12) Hydrologist; (13) Actuary; (14) Software developer, systems software; (15) Physicist; and (16) Biochemist and biophysicist. c. Every two years the authority, in consultation with the Department of Labor and Workforce Development, shall identify high-growth STEM occupations that will qualify under the program. The occupations identified shall be ones with projected growth in New Jersey of at least 10 percent, based on the most recently reported data from the United States Bureau of Labor Statistics or occupations the authority reasonably deems important to the State's strategic economic development goals. Medical doctor and teaching profession shall not be included as designated high-growth STEM occupations. L.2018, c.142, s.2.

N.J. Stat. § 18A:71C-68 Eligibility for participation.

3. To be eligible to participate in the program, an applicant shall: a. be a resident of the State and maintain residency during program participation; b. be a graduate of an approved STEM degree program at an institution of higher education located in New Jersey; c. have an outstanding balance on a qualifying student loan and not be in default on any qualifying student loan; d. have been employed full-time in a designated high-growth STEM occupation for a minimum of four years prior to initial application to the program and be employed thereafter for an additional one to four years in a designated high-growth STEM occupation; e. provide certification that the applicant's employer has agreed to annually provide the applicant at least a 100 percent match of the loan redemption benefit under the program during the applicant's participation in the program and employment in a designed high-growth STEM occupation; and f. satisfy any additional criteria the authority may establish. L.2018, c.142, s.3.

N.J. Stat. § 18A:71C-69 Selection of participants.

4. The executive director or his designee shall select the program participants from among those applicants who meet the eligibility criteria established pursuant to section 3 of this act, subject to available funds. L.2018, c.142, s.4.

N.J. Stat. § 18A:71C-70 Written contract between authority and participant; conditions for redemption of loan indebtedness.

5. a. A person who meets the eligibility requirements under section 3 of this act and has been selected by the executive director or his designee for participation in the program shall enter into a written contract with the authority. The contract shall specify the dates of required employment by the program participant in a designated high-growth STEM occupation and shall require the program participant to serve at least one year in a designated high-growth STEM occupation. b. Prior to the annual redemption of loan indebtedness: (1) the program participant shall submit to the authority certification of full-time employment in a designated high-growth STEM occupation for the full year period; and (2) the employer of the program participant shall pay the annual matching contribution to the authority in an amount equal to or greater than the $1,000 annual State-funded loan redemption benefit. c. Upon certification that a program participant has met all criteria for the annual redemption of loan indebtedness under the program, the authority shall combine the employer matching contribution and the State appropriated funds into a single payment to redeem a portion of the participant's loan. d. A program participant, as a condition of participation, shall be required to adhere to performance standards established by the executive director or his designee. e. A program participant shall be eligible for participation in the program for four years, even if the occupation in which the person is employed is no longer a designated high-growth STEM occupation. L.2018, c.142, s.5.

N.J. Stat. § 18A:71C-71 Conditions for nullification of agreement.

6. a. A program participant who has previously entered into a contract with the authority may nullify the agreement by notifying the authority in writing and reassuming full responsibility for the remaining outstanding balance of the loan debt. In no event shall employment for less than the full calendar year entitle the program participant to any benefits under the program. b. In the case of a program participant's death or total and permanent disability, the authority shall nullify the employment obligation of the program participant. The nullification shall terminate the authority's obligations under the loan redemption contract. When continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the employment obligation of the program participant. c. In the case of a program participant's conviction of a crime or an act of gross negligence in the performance of employment obligations, or a program participant's breach of the standards established pursuant to section 5 of this act, the executive director or his designee is authorized to terminate the program participant's participation in the program. L.2018, c.142, s.6.

N.J. Stat. § 18A:71C-72 False, misleading information supplied, fourth degree crime.

7. A person who knowingly or willfully furnishes any false or misleading information for the purpose of receiving loan redemption benefits under the program is guilty of a crime of the fourth degree. L.2018, c.142, s.7.

N.J. Stat. § 18A:71C-73 Rules, regulations.

8. The authority shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the provisions of this act. L.2018, c.142, s.8.

N.J. Stat. § 18A:71C-74 Definitions.

1. As used in section 2 of this act: "Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3. "Eligible student loan expenses" means the outstanding balance of the principal and interest due on student loans used to cover the cost of attendance while enrolled in an undergraduate or graduate degree program at an institution of higher education. "Low performing public school" means a school located in New Jersey, under collegiate grade, which is operated by a school district or a charter school established pursuant to P.L.1995, c.426 (C.18A:36A-1 et seq.) that meets the criteria of paragraph (1) or paragraph (2): (1) among all students in that school to whom a State assessment was administered, the sum of the percent of students scoring in the not yet meeting expectations and partially meeting expectations categories in both the language arts and mathematics subject areas of the State assessments exceeded 40% in each of the prior two school years; or (2) among all students in that school to whom a State assessment was administered, the sum of the percent of students scoring in the not yet meeting expectations and partially meeting expectations categories in either the language arts or mathematics subject areas of the State assessment exceeded 65% in each of the prior two school years. (3) A school shall continue to be designated a low performing school until such time that the sum of the percent of students scoring in the not yet meeting expectations and partially meeting expectations categories in both the language arts and mathematics subject areas of the State assessments is less than or equal to the sum of the Statewide percent of students scoring in the not yet meeting expectations and partially meeting expectations categories on the corresponding Statewide assessments. "Program participant" means a person who is initially hired by a school district following the effective date of this act and who meets the criteria of section 2 of this act, and who has executed a contract with the Higher Education Student Assistance Authority for participation in the loan redemption program. A program participant shall be a resident of New Jersey. "School district" means a local or regional school district established pursuant to chapter 8 or chapter 13 of Title 18A of the New Jersey Statutes, a county vocational school district established pursuant to article 3 of chapter 54 of Title 18A of the New Jersey Statutes, and a school district under full State intervention pursuant to P.L.1987, c.399 (C.18A:7A-34 et seq.). L.2019, c.401, s.1.

N.J. Stat. § 18A:71C-75 Loan redemption program for public school STEM teachers.

2. a. There is established in the Higher Education Student Assistance Authority a loan redemption program for public school teachers who teach science, technology, engineering or mathematics (STEM) classes. The program shall provide for the redemption of the eligible student loan expenses of a program participant following the fourth consecutive year of full-time employment as a teacher of science, technology, engineering, or mathematics in a public school. The annual amount of State funds appropriated to the loan redemption program shall not exceed $500,000. The authority shall notify the Legislature when the funds have been fully expended or committed. The authority shall give priority under the program to teachers of science, technology, engineering, or mathematics who are employed at a low performing public school. b. A program participant may redeem eligible student loan expenses upon execution of a contract between the program participant and the authority. The contract shall specify the total amount of debt to be redeemed by the State in return for service pursuant to subsection c. of this section. A program participant who has entered into a contract with the authority shall remain eligible for loan redemption under the contract in the event that the public school in which the teacher is employed loses its designation as a low performing school or the teacher is transferred to a school in the district that is not a low performing school. c. The redemption of loans under the loan redemption program shall equal 25 percent of the participant's eligible student loan expenses, up to $5,000, in return for each consecutive year of full-time employment as a teacher of science, technology, engineering, or mathematics in a public school. The total amount of eligible student loan expenses which may be redeemed under the program by a program participant, for four full school years of service, shall not exceed $20,000. A program participant shall submit to the authority proof of eligible employment in a public school prior to redemption of loan indebtedness. A program participant is not required to teach at the same public school for four consecutive years. d. A program participant who has entered into a redemption contract with the authority may nullify the contract by submitting written notification to the authority and assuming full responsibility for repayment of principal and interest on the full amount of his loans or that portion of the loans which has not been redeemed by the State in return for fulfillment of the contract. e. In the case of the program participant's death or total and permanent disability, the authority shall nullify the service obligation of the program participant. The nullification shall terminate the authority's obligations under the loan redemption contract. If continued enforcement of the contract results in extreme hardship, the authority may nullify or suspend the service obligation of the program participant. f. The authority shall advertise the availability of the program and engage in outreach activities with potential participants. L.2019, c.401, s.2.

N.J. Stat. § 18A:71C-76 Annual report to Governor, Legislature.

3. The authority shall annually submit a report on the loan redemption program established pursuant to section 2 of this act to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The report shall be submitted no later than July 1 of each year and shall include, but not be limited to, information on: the total number of program participants; the number of program participants entering the program in that year; a profile of the program participants, including demographic information, the school district in which the participant is employed and the school in which the participant teaches, and the institution of higher education from which the participant received a degree; the average annual loan redemption amount and the four-year average loan redemption amount of program participants; the number of applicants who were denied acceptance into the program, including the number who were denied due to a lack of program funding; and the amount of the annual appropriation used to administer the program. L.2019, c.401, s.3.

N.J. Stat. § 18A:71C-77 Definitions.

4. As used in sections 5 through 8 of this act: "Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3. "Eligible tuition expenses" means tuition expenses that were incurred by a program participant in attending an accredited master's degree or Ph.D. program in science, technology, engineering, or mathematics or that were incurred by a program participant in the completion of 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics, and which were not covered by any grants or scholarships. "Program" means the tuition reimbursement program established pursuant to section 5 of this act for teachers who acquire a master's degree or Ph.D. in science, technology, engineering, or mathematics or who complete 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics. "Program participant" means a teacher who contracts with the authority to teach STEM classes in a public school following the completion of a master's degree or Ph.D. program in science, technology, engineering, or mathematics or following the completion of 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics, in return for tuition reimbursement provided under the program. L.2019, c.401, s.4.

N.J. Stat. § 18A:71C-78 Tuition reimbursement program for certain STEM teachers in public schools.

5. a. There is established in the Higher Education Student Assistance Authority a tuition reimbursement program for teachers of science, technology, engineering, or mathematics (STEM) in the State. The program shall provide reimbursement for a portion of the eligible tuition expenses incurred by the participant in completing a master's degree or Ph.D. program in science, technology, engineering, or mathematics or in completing 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics. The annual amount of State funds appropriated to the tuition reimbursement program shall not exceed $500,000. The authority shall notify the Legislature when the funds have been fully expended or committed. b. A program participant shall enter into a contract with the authority for a specified four-year period of service in which the participant agrees to teach STEM classes in a public school in the State following the participant's completion of a master's degree or Ph.D. program in science, technology, engineering, or mathematics or the completion of 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics. The agreement shall specify the program participant's dates of required service and the total amount of reimbursement of eligible tuition expenses to be received by the participant in return for service. c. The tuition reimbursement for a program participant shall equal 25 percent of the participant's eligible tuition expenses, up to $5,000, in return for each full school year of teaching STEM classes under the program. The total tuition reimbursement amount for a program participant, for four full school years of service, shall not exceed $20,000 of the participant's eligible tuition expenses. A teacher shall be required to complete four full school years of service in order to be eligible to receive tuition reimbursement under the program. d. The authority shall advertise the availability of the program and engage in outreach activities with potential participants. L.2019, c.401, s.5.

N.J. Stat. § 18A:71C-79 Eligibility for tuition reimbursement program.

6. To be eligible to participate in the tuition reimbursement program established pursuant to section 5 of this act, an applicant shall: a. hold a bachelor's degree; b. have successfully completed, or be enrolled in, a master's degree or Ph.D. program in science, technology, engineering, or mathematics or have successfully completed, or be enrolled in, 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics; c. apply for the tuition reimbursement program within one year of completing a master's degree or Ph.D. program or 30 credits in a coherent sequence of courses in science, technology, engineering, or mathematics; and d. agree to teach STEM classes at a public school in New Jersey for four full school years in return for the tuition reimbursement provided under the program. L.2019, c.401, s.6.

N.J. Stat. § 18A:71C-80 Adherence to performance standards.

7. A program participant, as a condition of participation, shall be required to adhere to performance standards established by the authority. The standards shall include, but not be limited to, requirements that a program participant: a. maintains an appropriate certificate to teach in the State; b. remains current with payments on any student loans; and c. reports to the authority on a form and in a manner prescribed by the authority, and attested to by the public school, on the program participant's performance of teaching services rendered prior to reimbursement of tuition under the program. L.2019, c.401, s.7.

N.J. Stat. § 18A:71C-81 Annual report to Governor, Legislature.

8. The authority shall annually submit a report on the tuition reimbursement program established pursuant to section 5 of this act to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The report shall be submitted no later than July 1 of each year and shall include, but not be limited to, information on: the total number of program participants; the number of program participants entering the program in that year; a profile of the program participants, including demographic information, the school district in which the participant is employed and the school in which the participant teaches, and the institution of higher education from which the participant received a degree; the average annual tuition reimbursement amount and the four-year average tuition reimbursement amount of program participants; and the number of applicants who were denied acceptance into the program, including the number who were denied due to a lack of program funding. L.2019, c.401, s.8.

N.J. Stat. § 18A:71C-82 Rules, regulations.

9. The authority, in consultation with the Department of Education, shall adopt pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act. L.2019, c.401, s.9.

N.J. Stat. § 18A:71C-83 Definitions.

1. As used in this act: "Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3. "Low-performing school" means any public school that meets the criteria of paragraph (1) or paragraph (2): (1) among all students in that school to whom a State assessment was administered, the sum of the percent of students scoring in the not-yet-meeting expectations and partially meeting expectations categories in both the language arts and mathematics subject areas of the State assessments exceeded 40% in each of the prior two school years; or (2) among all students in that school to whom a State assessment was administered, the sum of the percent of students scoring in the not-yet-meeting expectations and partially meeting expectations categories in either the language arts or mathematics subject areas of the State assessment exceeded 65% in each of the prior two school years. (3) A school shall continue to be designated a low-performing school until such time that the sum of the percent of students scoring in the not-yet-meeting expectations and partially meeting expectations categories in both the language arts and mathematics subject areas of the State assessments is less than or equal to the sum of the Statewide percent of students scoring in the not-yet-meeting expectations and partially meeting expectations categories on the corresponding Statewide assessments. "High-need field" means a subject area or field of expertise in which there is a shortage of qualified teachers in the State as determined by the Department of Education. The department shall reassess its designation of high-need fields at least every five years. "Program participant" means an undergraduate student borrower under the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program established pursuant to N.J.S.18A:71C-21 who, following the effective date of this act, is initially hired by a school district to work as a teacher in a high-need field in a low-performing school, and who has executed a contract with the authority for participation in the loan redemption program. A program participant shall be a certified teacher and a resident of New Jersey. L.2021, c.384, s.1.

N.J. Stat. § 18A:71C-84 Loan redemption program established, Higher Education Student Assistance Authority.

2. a. There is established in the Higher Education Student Assistance Authority a loan redemption program for teachers in high-need fields who are employed in low-performing schools. The program shall provide for the redemption of a portion of the loans a program participant receives under the NJCLASS Loan Program pursuant to article 2 of chapter 71C of Title 18A of the New Jersey Statutes for service as a teacher in a high-need field in a low-performing school in New Jersey. The annual amount of State funds appropriated to the loan redemption program shall not exceed $1,000,000. The authority shall notify the Legislature when the funds have been fully expended or committed. b. A program participant may redeem his NJCLASS loan amounts upon execution of a contract between the program participant and the authority. The contract shall be for up to four one-year periods of service. The contract shall specify the total amount of debt, up to 100%, to be redeemed by the State in return for service pursuant to subsection d. of this section. c. A program participant who has entered into a contract with the authority shall remain eligible for loan redemption under the contract in the event that: (1) the public school in which the teacher is employed loses its designation as a low-performing school or the teacher is transferred to a school in the district that is not a low-performing school; or (2) the high-need field in which the program participant is teaching pursuant to his service obligation subsequently loses its designation as a high-need field, and the program participant continues to teach in the same field in accordance with his contractual agreement with the authority. d. The redemption of loans under the loan redemption program shall amount to 25% of principal and interest of a program participant's NJCLASS loan amounts, up to $5,000, in return for each consecutive full year of service. The total amount of NJCLASS loan amounts which may be redeemed under the program by a program participant, for four full school years of service, shall not exceed $20,000. Service for less than the full school year of each period of service shall not entitle the program participant to any benefits under the loan redemption program. Prior to the redemption of loan indebtedness, a program participant shall submit to the authority proof of employment. e. A program participant who has entered into a redemption contract with the authority may nullify his contract by submitting written notification to the authority and assuming full responsibility for repayment of principal and interest on the full amount of his loans or that portion of the loans which has not been redeemed by the State, in return for partial fulfillment of the contract. f. In case of a program participant's death or total and permanent disability, the authority shall nullify the service obligation of the program participant. The nullification shall terminate the authority's obligations under the loan redemption contract. If continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the service obligation of the program participant. g. The authority shall advertise the availability of the program and engage in outreach activities with potential participants. L.2021, c.384, s.2.

N.J. Stat. § 18A:71C-85 Program report submission to Governor, Legislature.

3. The authority shall annually submit a report on the program to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The report shall be submitted no later than July 1 of each year and shall include, but not be limited to, information on: the total number of program participants; the number of program participants entering the program in that year; a profile of the program participants, including demographic information, the school district in which the participant is employed and the school in which the participant teaches, and the institution of higher education from which the participant received a degree; the average annual loan redemption amount and the four-year average loan redemption amount of program participants; the number of applicants who were denied acceptance into the program, including the number who were denied due to a lack of program funding; the amount of the annual program appropriation that is applied to loan redemption payments for participants; the amount of the annual program appropriation that is used to compensate bondholders due to bond modification including, but not limited to, interest loss over the life of the loans; and the amount of the annual appropriation used to administer the program. L.2021, c.384, s.3.

N.J. Stat. § 18A:71C-86 General Fund appropriations.

4. There is annually appropriated from the General Fund to the Higher Education Student Assistance Authority a sum of $1,000,000 for costs associated with loan redemption pursuant to section 2 of this act. L.2021, c.384, s.4.

N.J. Stat. § 18A:71C-87 Definitions.

1. As used in this act: "Approved site" means a community provider of behavioral and mental health services identified by the Higher Education Student Assistance Authority, in consultation with the Department of Health, for inclusion in the program. Approved sites may include, but need not be limited to, providers operated by a nonprofit, institution of higher education, school district, county, the Department of Children and Families, the Department of Human Services, and the Department of Health. "Authority" means the Higher Education Student Assistance Authority. "Eligible behavioral healthcare providers" means psychiatrists, psychologists, licensed clinical social workers, psychiatric nurse mental health clinical specialists; board certified behavior analysts; licensed clinical alcohol and drug counselors; and any other professionals identified by the executive director of the authority for inclusion in the program. "Eligible qualifying loan expenses" means the cumulative outstanding balance of student loans covering the cost of attendance at an undergraduate or graduate institution of higher education at the time an applicant is selected for the program. Interest paid or due on qualifying loans that an applicant has taken out for use in paying the costs of undergraduate or graduate education shall be considered eligible for reimbursement under the program. The authority may establish a limit on the total amount of qualifying loans which may be redeemed for participants under the program, provided that the total redemption of qualifying loans does not exceed $150,000, or the maximum amount authorized by the federal government, whichever is greater, either in State funds or the sum of federal, State, and other non-federal matching funds, pursuant to section 338I of the Public Health Service Act (42 U.S.C. s.254q-1), whichever is applicable. "Executive director" means the executive director of the Higher Education Student Assistance Authority. "Program" means the Behavioral Healthcare Provider Loan Redemption Program established pursuant to this act. "Program participant" means a behavioral healthcare provider who contracts with the authority to engage in the clinical practice of mental or behavioral healthcare at an approved site in exchange for the redemption of eligible qualifying loan expenses provided under the program. "Qualifying loan" means a government or commercial loan for the actual costs paid for tuition and reasonable education and living expenses relating to the obtaining of a degree for use in a mental or behavioral healthcare profession. "Total and permanent disability" means a physical or mental disability that is expected to continue indefinitely or result in death and renders a participant in the program unable to perform that person's service obligation, as determined by the executive director or his designee. L.2022, c.34, s.1.

N.J. Stat. § 18A:71C-88 "Behavioral Healthcare Provider Loan Redemption Program" established.

2. There is established a Behavioral Healthcare Provider Loan Redemption Program within the Higher Education Student Assistance Authority. The program shall provide for the redemption of a portion of the eligible qualifying loan expenses of program participants for each period of service at an approved site. L.2022, c.34, s.2.

N.J. Stat. § 18A:71C-89 Program eligibility.

3. a. To be eligible to participate in the program, an applicant shall: (1) be a resident of the State; (2) be employed, or plan to be employed, as an eligible behavioral healthcare provider at an approved site; and (3) submit an application in accordance with such procedures and requirements as are established by the executive director. b. The executive director, or the executive director's designee, shall select the program participants from among those applicants who meet the eligibility criteria, subject to available funds. c. A program participant shall enter into a written contract with the authority to participate in the program. The contract shall specify the duration of the applicant's required service and the total amount of eligible student loan expenses to be redeemed by the State in return for service. d. The redemption of loans under the program shall not exceed $50,000 of principal and interest of eligible student loan expenses following the completion of two full years of service satisfactorily completed by the program participant. A program participant who completes four full years of service satisfactorily shall be eligible to receive a second redemption amount of $50,000 at the completion of the fourth year. A program participant who completes six full years of service satisfactorily shall be eligible to receive a third and final redemption amount of $50,000 at the completion of the sixth year. The total loan redemption amount for a program participant, for six years of service, shall not exceed $150,000. e. The period of service shall commence on or after the date of enactment of this act. L.2022, c.34, s.3.

N.J. Stat. § 18A:71C-90 Redemption contract, service obligation, nullification; circumstances, certain.

4. a. A program participant who has entered into a redemption contract with the authority may nullify that contract by submitting written notification to the authority and assuming full responsibility for repayment of the full amount of the participant's loan or that portion of the loan that has not been redeemed by the State in return for partial fulfillment of the contract. b. In the case of a program participant's death or total or permanent disability, the authority shall nullify the service obligation of the participant, thereby terminating the participant's service obligation; or where continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the participant's service obligation. c. In no event shall service at an approved site for less than the full period of service pursuant to subsection d. of section 3 of this act entitle the program participant to any benefits under the program. L.2022, c.34, s.4.

N.J. Stat. § 18A:71C-91 Simultaneous tuition, loan redemption participation, certain, prohibited.

5. A student who is participating in any other State tuition or loan redemption program, or in the federally administered National Health Service Corps Loan Repayment Program, section 338B of the Public Health Service Act (42 U.S.C. s.254 l-1), shall not be eligible to participate simultaneously in the Behavioral Healthcare Provider Loan Redemption Program. L.2022, c.34, s.5.

N.J. Stat. § 18A:71C-92 Incentive grants.

6. The executive director of the authority shall annually award incentive grants, within the limits of available State appropriations, to program participants who work primarily with children and adolescents. An incentive grant shall not exceed $5,000. A program participant may be eligible to receive multiple incentive grants during their participation in the program. L.2022, c.34, s.6.

N.J. Stat. § 18A:71C-93 Definitions.

1. As used in sections 1 through 3 of P.L.2025, c.269 (C.18A:71C-93 through 18A:71C-95): “Approved site” means an airport located within the State or operated by a multi-state agency serving the State or a Terminal Radar Approach Control, Air Route Control Center, or any other similar Federal Aviation Administration facility serving an airport located within the State or operated by a multi-state agency serving the State. “Authority” means the Higher Education Student Assistance Authority. “Eligible air traffic controller” means an air traffic controller holding an appropriate degree who commences employment with the Federal Aviation Administration following the effective date of P.L.2025, c.269 (C.18A:71C-93 et al.). “Executive director” means the executive director of the Higher Education Student Assistance Authority. “Program” means the Air Traffic Controller Loan Redemption Program established pursuant to section 3 P.L.2025, c.269 (C.18A:71C-95). “Program participant” means an eligible air traffic controller who contracts with the authority to be an air traffic controller at an approved site in exchange for the redemption of qualifying student loan amounts. “Qualifying student loan amounts” means the cumulative outstanding balance of federal, State, or commercial student loans at the time an applicant is selected for the program, which an applicant has borrowed to pay for the cost of attendance for undergraduate or graduate education at an institution of higher education. Interest paid or due on qualifying student loan amounts shall be considered eligible for redemption under the program. “Total and permanent disability” means a physical or mental disability that is expected to continue indefinitely or result in death and renders a program participant unable to perform the program participant’s contractual obligation, as determined by the executive director or the executive director’s designee. L.2025, c.269, s.1.

N.J. Stat. § 18A:71C-94 Air Traffic Controller Loan Redemption Program.

2. a. There is established the Air Traffic Controller Loan Redemption Program within the Higher Education Student Assistance Authority. The program shall provide for the redemption of a portion of the qualifying student loan amounts of a program participant for each period of service at an approved site. b. To be eligible to participate in the program, an applicant shall: (1) be a resident of the State; and (2) be employed as an eligible air traffic controller at an approved site. c. The executive director, or the executive director’s designee, shall select the program participants from among those applicants who meet the eligibility criteria, subject to available funds. d. The program participant shall enter into a written contract with the authority to participate in the program. The contract shall specify the duration of the program participant’s required service and the total amount of qualifying student loan amounts to be redeemed by the State in return for service. e. The redemption of qualifying student loan amounts under the program shall amount to 16 percent of the program participant’s qualifying student loan amounts in return for one full year of service at an approved site, up to $16,000, an additional 26 percent for a second full year of service, up to $26,000, an additional 28 percent for a third full year of service, up to $28,000, and an additional 30 percent for a fourth full year of service, up to $30,000. Total redemption of qualifying student loan amounts under the program shall not exceed $100,000. f. The period of service shall commence on or after the date of enactment of P.L.2025, c.269 (C.18A:71C-93 et al.). g. No amount of qualifying student loan amounts shall be redeemed for services performed for less than a full year. L.2025, c.269, s.2.

N.J. Stat. § 18A:71C-95 Air Traffic Controller Loan Redemption contract nullification.

3. a. A program participant who has entered into a redemption contract with the authority pursuant to section 2 of P.L.2025, c.269 (C.18A:71C-94) may nullify that contract by submitting written notification to the authority and assuming full responsibility for repayment of the full amount of the program participant’s student loan amounts. b. In the case of a program participant’s death or total and permanent disability, the authority shall nullify the service obligation of the program participant. c. The authority may nullify or suspend a program participant’s service obligation if continued enforcement of the contract may result in extreme hardship. L.2025, c.269, s.3.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026