New Jersey § 18a:71c-84

§ 18a:71c-84.

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.