Establishes Teaching Scholars Loan Redemption Program in Higher Education Student Assistance Authority.

A1697

ASSEMBLY, No. 1697

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Assemblyman Rodriguez

SYNOPSIS

���� Establishes Teaching Scholars Loan Redemption Program
in Higher Education Student Assistance Authority.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning teacher recruitment and supplementing
chapter 71C of Title 18A of the New Jersey Statutes.�

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� There is established the
Teaching Scholars Loan Redemption Program within the Higher Education Student
Assistance Authority.

The program shall provide loan
redemption to finance the undergraduate or graduate study of program
participants in exchange for full-time employment as an educator at a public
school in the State. The purpose of the program is to address the current and
projected critical shortage of educators in the State by providing an incentive
for the State�s top high school graduates to pursue a career in teaching.�

���� 2.��� a. To be eligible to
participate in the program, an applicant shall:

���� (1) be a resident of the
State and maintain domicile in the State during participation in the program;

���� (2) graduate from a high
school in the State on or after the effective date of this act;

���� (3) have applied for all other
available forms of State and federal need-based grants and merit scholarships,
exclusive of loans, the full amount of which grants and scholarships shall be
applied to tuition, and fee charges, if applicable;

���� (4) be enrolled or plan to
enroll in a full-time undergraduate or graduate course of study at a public or
independent institution of higher education in the State; and

���� (5) meet any other eligibility
criteria established by the authority pursuant to section 3 of this act.

���� b.��� Eligibility for the
program may be renewed upon the student's filing of a renewal financial aid
application, providing evidence that the student remains in good academic
standing at an institution of higher education in the State, and by meeting any
other requirements established by the authority.�

���� 3. a.� The authority shall
establish academic eligibility criteria, including quantitative measures of
academic aptitude and achievement, to ensure the recruitment of high-achieving
students into the program.�

���� b. The authority shall,
subject to the availability of funds and a sufficient number of qualified
applicants, select a minimum of 100 high school graduates each year who shall
be eligible to receive an initial student loan to pursue a course of study at an
institution of higher education in the State.� In no academic year shall a
participant be eligible for a loan greater than the total cost of attendance,
including tuition, room and board, and other necessary fees, less the total
value of all scholarships and grants received by the participant for that
academic year.� Program participants may apply for loan renewal for four
additional years, with the total loan received by any participant not to exceed
$40,000 during undergraduate studies, and an additional $10,000 during graduate
studies.�

���� 4. a.� 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 as a public school educator in the State.

���� b.��� The redemption of loans
under the program shall not exceed

$10,000 for each full year of
service satisfactorily completed by the program participant.� The total loan
redemption amount for a program participant, for five years of service, shall
not exceed $50,000.� No amount of loan redemption shall be provided for service
performed for less than a full year.

���� 5.� 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.

���� 6.��� This act shall take
effect on the first day of the second month next following the date of
enactment.

STATEMENT

���� This bill establishes the
Teaching Scholars Loan Redemption Program within the Higher Education Student
Assistance Authority.

The purpose of the program is to
address the current and projected critical shortage of educators in the State
by providing an incentive for the State�s top high school graduates to pursue a
career in teaching.� The program will provide loan redemption to finance the
undergraduate or graduate study of program participants in exchange for
full-time employment as an educator at a public school in the State.

���� The bill establishes certain
eligibility requirements for the program, and requires the authority to
establish additional academic eligibility requirements, including quantitative
measures of academic aptitude and achievement.

���� The bill directs the authority
to, subject to the availability of funds and a sufficient number of qualified
applicants, select a minimum of 100 high school graduates each year to be
eligible to receive an initial student loan to pursue a course of study at an
institution of higher education in the State.� Program participants may apply
for loan renewal for four additional years, with the total loan received by any
participant not to exceed $40,000 during undergraduate studies, and an
additional $10,000 during graduate studies.�

���� The bill requires a program
participant to enter into a written contract with the authority to participate
in the program.� The redemption of loans under the program is not to exceed
$10,000 for each full year of service satisfactorily completed by the program
participant.� The total loan redemption amount for a program participant, for
five years of service, is not to exceed $50,000.� ����������

���� The bill provides that 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.� Finally, in the
case of a program participant's death or total or permanent disability, the
authority is required to 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.