Sponsored by:
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
SYNOPSIS
Makes Fiscal Year 2021 supplemental appropriation of $700,000 to Social Services Student Loan Redemption Program.
CURRENT VERSION OF TEXT
As introduced.
A Supplement to "An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 2021 and regulating the disbursement thereof," approved September 29, 2020 (P.L.2020, c.97).
Be It Enacted by the Senate and the General Assembly of the State of New Jersey:
1. In addition to the amounts appropriated under P.L.2020, c.97, the annual State appropriations act for Fiscal Year 2021, there is appropriated out of the General Fund the following sum for the purpose specified:
74 DEPARTMENT OF STATE 30 Educational, Cultural, and Intellectual Development 36 Higher Educational Services 2405 Higher Education Student Assistance Authority FUNDING CATEGORY |
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45-2405 Student Assistance Programs............................................... |
$700,000 |
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Total Grants-in-Aid Appropriation, |
$700,000 |
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Higher Education Student Assistance Authority .............. |
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Grants-in-Aid: |
|
|
45 Social Services Student Loan Redemption Program ..……………………………... |
($700,000) |
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2. This act shall take effect immediately.
STATEMENT
This bill provides a supplemental appropriation of $700,000 from the General Fund to the Higher Education Student Assistance Authority for the Social Services Student Loan Redemption Program.
Established pursuant to P.L.2005, c.157 (C.18A:71B-87 et al.), the Social Services Student Loan Redemption Program provides forgiveness of up to $20,000 in State or federal student loans, over four years, to State residents who are hired to work full-time as direct care professionals in qualified facilities within one year of completing an approved course of study. Qualified facilities under the law include: a facility operated by the Department of Human Services that provides direct care services to persons served by the department; a county psychiatric hospital; a facility operated by the Juvenile Justice Commission; a veterans’ memorial home operated by the Department of Military and Veterans’ Affairs; and a nonprofit agency in the State that contracts with the Department of Human Services or the Juvenile Justice Commission to provide direct care services.
While the Social Services Student Loan Redemption Program is enshrined in the State statutes, the program has not received State funding since the Fiscal Year (FY) 2011 appropriations act. In the FY 2011 appropriations act, the program received $700,000 and supported 654 participants. Appropriations acts for subsequent fiscal years included budget language that required that any funds available for the program would only be used to benefit students who had received awards prior to FY 2011.