18A:71C-84 Loan redemption program established, Higher Education Student Assistance Authority.
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2. a. There is established in the Higher Education Student Assistance Authority a loan redemption program for teachers in high-need fields who are employed in low-performing schools. The program shall provide for the redemption of a portion of the loans a program participant receives under the NJCLASS Loan Program pursuant to article 2 of chapter 71C of Title 18A of the New Jersey Statutes for service as a teacher in a high-need field in a low-performing school in New Jersey. The annual amount of State funds appropriated to the loan redemption program shall not exceed $1,000,000. The authority shall notify the Legislature when the funds have been fully expended or committed.
b. A program participant may redeem his NJCLASS loan amounts upon execution of a contract between the program participant and the authority. The contract shall be for up to four one-year periods of service. The contract shall specify the total amount of debt, up to 100%, to be redeemed by the State in return for service pursuant to subsection d. of this section.
c. A program participant who has entered into a contract with the authority shall remain eligible for loan redemption under the contract in the event that:
(1)the public school in which the teacher is employed loses its designation as a low-performing school or the teacher is transferred to a school in the district that is not a low-performing school; or
(2)the high-need field in which the program participant is teaching pursuant to his service obligation subsequently loses its designation as a high-need field, and the program participant continues to teach in the same field in accordance with his contractual agreement with the authority.
d. The redemption of loans under the loan redemption program shall amount to 25% of principal and interest of a program participant's NJCLASS loan amounts, up to $5,000, in return for each consecutive full year of service. The total amount of NJCLASS loan amounts which may be redeemed under the program by a program participant, for four full school years of service, shall not exceed $20,000. Service for less than the full school year of each period of service shall not entitle the program participant to any benefits under the loan redemption program. Prior to the redemption of loan indebtedness, a program participant shall submit to the authority proof of employment.
e. A program participant who has entered into a redemption contract with the authority may nullify his contract by submitting written notification to the authority and assuming full responsibility for repayment of principal and interest on the full amount of his loans or that portion of the loans which has not been redeemed by the State, in return for partial fulfillment of the contract.
f. In case of a program participant's death or total and 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. If continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the service obligation of the program participant.
g. The authority shall advertise the availability of the program and engage in outreach activities with potential participants.
L.2021, c.384, s.2.