S 1831: Establishes loan redemption program for teachers in certain fields to redeem loan amounts received under New Jersey College Loans to Assist State Students Loan Program through employment in certain failing schools

S 1831

Establishes loan redemption program for teachers in certain fields to redeem loan amounts received under New Jersey College Loans to Assist State Students Loan Program through employment in certain failing schools.

NJEA supports S-1831 (Ruiz).  This bill would establish a loan redemption program for new teachers who have loans from the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program and who go into an area of teaching declared as “in need” by the DOE in a school district that is considered “failing.”

This program would be administered by the Higher Education Assistance Authority.  The amount of loan redemption would be as follows:

  • equal to 15 percent of the principal and interest of a program participant’s NJCLASS loan amounts for each of the first two full years of service;
  • 20 percent of principal and interest for the third and fourth full years of service; and
  • 30 percent of principal and interest in return for the fifth full year of service.

This bill will benefit New Jersey public schools, as it creates an incentive for individuals to enter the teaching profession and could broaden the applicant pool.   At the same time, it will help those who decide to enter the teaching field repay their loans.

NJEA requests, however, that the terminology of “failing schools” be updated to match the current terms that denote schools with low test scores, namely “focus schools “ and/or “priority schools.”

NJEA asks that you vote “yes” on S-1831.

Text of bill

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