S2403

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.