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.