ASSEMBLY, No. 1634

STATE OF NEW JERSEY

219th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

 


 

Sponsored by:

Assemblywoman  PAMELA R. LAMPITT

District 6 (Burlington and Camden)

 

 

 

 

SYNOPSIS

     Requires Higher Education Student Assistance Authority to reduce monthly loan repayment for New Jersey College Loans to Assist State Students (NJCLASS) loan borrowers who have child enrolled in Grow NJ Kids-rated child care program.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning student loan repayment waivers for certain borrowers 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.    As used in this act:

     “Approved program” means a licensed child care center, a school- or center-based preschool program, a Head Start program, or a registered family child care provider which has achieved a Grow NJ Kids rating of at least three.

     “Authority” means the Higher Education Student Assistance Authority” established pursuant to N.J.S.18A:71A-3.

     “Grow NJ Kids” means New Jersey’s quality rating improvement system designed to raise the quality of child care and early learning programs.

     “Program” means the Grow NJ Kids Student Loan Waiver Program established pursuant to section 2 of this act.

     “Program participant” means a New Jersey College Loans to Assist State Students (NJCLASS) Loan Program borrower who has a child enrolled in an approved program and who has applied and been accepted by the authority for participation in the Grow NJ Kids Student Loan Waiver Program.

 

     2.    There is established a Grow NJ Kids Student Loan Waiver Program within the Higher Education Student Assistance Authority. Under the program, the authority shall reduce the principal monthly loan repayment amount for an eligible New Jersey College Loans to Assist State Students (NJCLASS) Loan Program borrower who has a child enrolled in an approved program, by the amount of the approved program’s monthly tuition.  The borrower shall pay any principal monthly loan repayment amount that exceeds the amount waived by the authority plus any interest.  The State shall appropriate such amounts as may be necessary to offset the loan principal amounts waived under the program.

 

     3.    To be eligible to participate in the program, an applicant shall:

     a.     be a resident of the State;

     b.    provide evidence of his child’s enrollment in an approved program;

     c.     submit an application to participate in the program to the authority in a time and manner as determined by the authority; and

     d.    satisfy any additional criteria the authority may establish.

 

     4.    a.  A program participant shall enter into a contract with the authority.  The contract shall specify the amount of the monthly loan repayment to be waived by the authority and the monthly amount to be paid by the program participant.

     b.    A program participant who has entered into a contract with the authority may nullify the contract by notifying the authority in writing and assuming full responsibility for the total monthly loan repayment amount.

 

     5.    A program participant shall immediately notify the authority if:

     a.     there is a change in the tuition amount charged by the approved program;

     b.    the child is no longer enrolled in the approved program; or

     c.     the child transfers from the approved program to another approved program, or to another child care program that does not have a Grow NJ Kids rating of at least three.

    

     6.    The authority shall provide:

     a.     each licensed child care center, school- or center-based preschool program, Head Start program, or registered family child care provider with information on the Grow NJ Kids initiative, including information on how to attain a Grow NJ Kids rating; and

     b.    each NJCLASS Loan Program borrower with information on the Grow NJ Kids Student Loan Waiver Program.

 

     7.    The authority shall adopt in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act.

 

     8.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill establishes a Grow NJ Kids Student Loan Waiver Program within the Higher Education Student Assistance Authority. Grow NJ Kids is New Jersey’s quality rating improvement system designed to raise the quality of child care and early learning programs.  Under the bill, the authority will reduce the principal monthly loan repayment amount for an eligible New Jersey College Loans to Assist State Students (NJCLASS) Loan Program borrower who has a child enrolled in an approved program by the amount of the approved program’s monthly tuition.  The bill defines an “approved program” as a licensed child care center, a school- or center-based preschool program, a Head Start program, or a registered family child care provider which has achieved a Grow NJ Kids rating of at least three.  The borrower will pay any principal monthly loan repayment amount that exceeds the amount waived by the authority plus any interest.  The bill provides that the State will appropriate such amounts as may be necessary to offset the loan principal amounts waived under the program.

     In order to be eligible to participate in the program, an applicant must:

·        be a resident of the State;

·        provide evidence of his child’s enrollment in an approved program;

·        submit an application to participate in the program to the authority in a time and manner as determined by the authority; and

·        satisfy any additional criteria the authority may establish.

     Under the bill, the authority will provide:

·       each licensed child care center, school- or center-based preschool program, Head Start program, or registered family child care provider with information on the Grow NJ Kids initiative, including information on how to attain a Grow NJ Kids rating; and

·      each NJCLASS Loan Program borrower with information on the Grow NJ Kids Student Loan Waiver Program.