Establishes Large Animal Veterinarian Loan Redemption Program; appropriates $200,000.

S3957

SENATE, No. 3957

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Senator� JOHN J. BURZICHELLI

District 3 (Cumberland, Gloucester and Salem)

SYNOPSIS

���� Establishes Large Animal Veterinarian Loan Redemption
Program; appropriates $200,000.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

establishing the Large Animal Veterinarian Loan
Redemption Program, supplementing chapter 71B of Title 18A of the New Jersey
Statutes, and making an appropriation.

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

����� 1.�� As
used in 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 cumulative total of the principal and
interest due on student loans used to cover the cost of attendance in a
veterinary medicine degree program.

����� �Full-time
large animal veterinarian� means a veterinarian who practices large animal
veterinary medicine for a minimum of 40 hours per week.

����� �Mixed-time
large animal veterinarian� means a veterinarian who practices large animal
veterinary medicine for a minimum of 26.6 hours per week but less than 40 hours
per week.

����� �Part-time
large animal veterinarian� means a veterinarian who practices large animal
veterinary medicine for a minimum of 12 hours per week but less than 26.6 hours
per week.

����� "Program
participant" means a person who, following the effective date of this act,
is engaged in the practice of veterinary medicine, a portion of which activity
is for the protection and enhancement of large animal health and productivity,
and who has executed a contract with the Higher Education Student Assistance
Authority for participation in the Large Animal Veterinarian Loan Redemption
Program.

����� �Qualifying
loan� means a government or commercial loan for the actual costs paid for
tuition and reasonable education and living expenses, not to exceed the cost of
attendance,

relating to the obtaining of
a degree in veterinary medicine.

����� �State-designated
underserved area� means a geographic area in the State which has been
designated by the Director of the Division of Animal Health in the Department
of Agriculture as having a shortage of veterinarians treating large animals.

���� 2.��� There is established in
the Higher Education Student Assistance Authority the Large Animal Veterinarian
Loan Redemption Program.� The program shall provide for the redemption of a
portion of the eligible student loan expenses of a program participant for each
year of service engaged in the practice of large animal veterinary medicine in
State-designated underserved areas in New Jersey.

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

���� a.���� be a graduate of� an
accredited veterinary school; and

���� b.��� agree to practice large
animal veterinary medicine as a full-time, mixed-time, or part-time large
animal veterinarian in a State-designated underserved area under the terms and
conditions provided in section 4 of this act.

���� 4.��� a.� A program
participant may redeem eligible student loan expenses upon execution of a
contract between the program participant and the authority.� The contract shall
be for a period of three years of service in a State-designated underserved
area.� Except as otherwise provided pursuant to subsection c. and subsection d.
of this section, a program participant who executes a contract pursuant to this
section shall complete the full three years of service, even if the amount of
the participant�s eligible student loan expenses are paid in full at any point
during the three-year period.� A program participant may be eligible to execute
a contract for another three-year period of service upon completion of the
initial contract, provided that the participant continues to meet the
eligibility criteria enumerated in section 3 of this act.� The contract shall
specify the total amount of debt to be redeemed by the State in return for
service pursuant to subsection b. of this section.�

���� b.��� (1)� The redemption of
loans under the loan redemption program shall:

���� (a)� for a full-time large
animal veterinarian, not exceed $25,000 of principal and interest of eligible
student loan expenses in return for each full year of service as a large animal
veterinarian in a State-designated underserved area, for a total redemption
amount not to exceed $150,000 of

eligible student loan expenses in return for a maximum of six
full years of service;

���� (b)� for a mixed-time large
animal veterinarian, not exceed two-thirds of the maximum amount of annual
redemption of eligible student loan expenses for a full-time large animal veterinarian,
in return for each full year of service as a large animal veterinarian in a
State-designated underserved area, for a total redemption amount not to exceed
$100,000 of eligible student loan expenses in return for a maximum of

six
full years of service; and

���� (c)� for a part-time large
animal veterinarian, not exceed one-third of the maximum amount of annual
redemption of eligible student loan expenses for a full-time large animal veterinarian,
in return for each full year of service as a large animal veterinarian in a
State-designated underserved area, for a total redemption amount not to exceed
$50,000 of eligible student loan expenses in return for a maximum of

six
full years of service.�

���� (2)� Eligible loans shall not
be redeemed for service of less than one full year annually.� A program
participant shall annually submit to the authority proof of eligible employment
as a large animal veterinarian in a State-designated underserved area prior to
the annual redemption of loan indebtedness.

���� c.���� A program participant
who has entered into a redemption contract with the authority may nullify a contract
by submitting written notification to the authority and assuming full
responsibility for repayment of principal and interest on the full amount of the
loans or that portion of the loans which has not been redeemed by the State in
return for partial fulfillment of the contract.

���� d.��� In case of a program
participant's death or total or 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,
except that in the event that a program participant's death or total and
permanent disability occurs after the second year of service, the authority
shall redeem the current year of service. If continued enforcement of the
contract results in extreme hardship, the authority may nullify or suspend the
service obligation of the program participant.

���� e.� In the event that a
program participant fails to complete three full years of service as required
pursuant to subsection a. of this section, the program participant
shall repay the State for all loan redemption funding
previously extended to the program participant, including interest.

���� 5.��� The executive director
of the authority or a designee, in consultation with the Director of the
Division of Animal Health in the Department of Agriculture, shall match program
participants to State-designated underserved areas.

���� 6.��� The authority shall
adopt, in consultation with the Division of Animal Health in the Department of
Agriculture, 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.

���� 7.� There is appropriated from
the General Fund to the Higher Education Student Assistance Authority the sum
of $200,000 to effectuate the purposes of this act.

���� 8.� This act shall take effect
immediately.�

STATEMENT

���� This bill establishes the
Large Animal Veterinarian Loan Redemption Program in the Higher Education
Student Assistance Authority (HESAA).� The program is to provide for the
redemption of a portion of the eligible student loan expenses of a program
participant for each year of service engaged in the practice of large animal
veterinary medicine in State-designated underserved areas in New Jersey.

���� Under the program, a
participant may redeem eligible student loan expenses upon the execution of a
contract with the HESAA.� The contract is required to be for a
period of three years of service in a
State-designated underserved area, which is defined as a geographic area in the
State which has been designated by the Director of the Division of Animal
Health in the Department of Agriculture as having a large animal veterinarian
shortage affecting the area.� A program participant who executes a contract is
required to complete the full three years of service, even if the amount of the
participant�s eligible student loan expenses are paid in full at any point during
the three-year period.� A program participant may be eligible to execute a
contract for another three-year period of service upon completion of the
initial contract. Any contract executed pursuant to the program is required to
specify the total amount of debt to be redeemed by the State in return for
service.�

���� The bill enumerates a tiered
structure of loan redemption payments based on the extent to which a program
participant spends their time treating large animals.� The redemption of loans pursuant
to this tiered structure provides for the redemption of loans as follows:

�

for a full-time
large animal veterinarian spending a minimum of 40 hours per week treating
large animals, an amount not to exceed $25,000 of principal and interest of
eligible student loan expenses in return for each full year of service, for a
total redemption amount not to exceed $150,000 of

eligible
student loan expenses in return for a maximum of six full years of service;

�

for a
mixed-time large animal veterinarian spending between 26.6 hours and 40 hours
per week treating large animals, an amount not to exceed two-thirds of the
maximum amount of loan redemption for a full-time large animal veterinarian;
and

�

for a part-time
large animal veterinarian spending between 12 hours and 26.6 hours per week
treating large animals, an amount not to exceed one-third of the maximum amount
of redemption of eligible student loan expenses for a full-time large animal
veterinarian.�

���� The bill requires the
executive director of the HESAA, in consultation with the Director of the
Division of Animal Health in the Department of Agriculture, to match program
participants to State-designated underserved areas.� Finally, the bill
appropriates $200,000 to the HESAA to fund the program.