A3255

An Act establishing the Large Animal Veterinarian Loan Redemption Program and supplementing chapter 71B of Title 18A of the New Jersey Statutes.

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 while enrolled in an undergraduate or graduate degree program at an institution of higher education.

"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 relating to the obtaining of a degree in veterinary medicine.

“State-designated underserved area” means a geographic area in this State which has been designated by the Secretary of Agriculture on the basis of a large animal veterinarian shortage affecting the area.

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 resident of the State;

b. be a graduate of a veterinary school approved by the State Board of Veterinary Medical Examiners;

c. have completed a professional residency program and received a recommendation from the director of the training program concerning participation in the loan redemption program; and

d. agree to practice large animal veterinary medicine 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 specified number of one-year periods and 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. Maximum redemption of loans under the loan redemption program shall amount to 20 percent of principal and interest of eligible student loan expenses in return for one full year of service as a large animal veterinarian in a State-designated underserved area, for a total redemption of 100 percent of eligible student loan expenses in return for five full years of service. 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.

5. The executive director of the authority or a designee, in consultation with the Secretary of Agriculture, shall match program participants to State-designated underserved areas.

6. The authority shall adopt, in consultation with the Secretary 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. This act shall take effect immediately.

STATEMENT

This bill establishes the Large Animal Veterinarian Loan Redemption Program in the Higher Education Student Assistance Authority. Under the program, a participant would redeem 20 percent of eligible student loan expenses for each year of service as a large animal veterinarian in a State-designated underserved area. Eligible student loan expenses is defined as the cumulative total 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. Program participants are matched to State-designated underserved areas by the Executive Director of the Higher Education Student Assistance Authority, in consultation with the Secretary of Agriculture.

Under the bill, each program participant must be a resident of the State, be a graduate of a veterinary school approved by the State Board of Veterinary Medical Examiners, have completed a professional residency program and received a recommendation from the director of the training program concerning participation in the loan redemption program, and agree to practice large animal veterinary medicine in a State-designated underserved area. The contract would be for five one-year periods and would specify the total amount of debt to be redeemed by the State in return for the service. Eligible loans will not be redeemed for service of less than one full year annually.