S2825

An Act establishing a loan redemption program for certain public school teachers 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:

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

“Eligible student loan expenses” means the outstanding balance of the principal and interest due on student loans used to cover the cost of attendance while enrolled in an undergraduate or graduate degree program at an institution of higher education.

“Low performing public school” means a school located in New Jersey, under collegiate grade, which is operated by a school district, a charter school established pursuant to P.L.1995, c.426 (C.18A:36A-1 et seq.), or a renaissance school established pursuant to P.L.2011, c.176 (C.18A:36C-1 et seq.), that meets the criteria of paragraph (1), paragraph (2), or paragraph (3):

(1) among all students in that school to whom a State assessment was administered, the sum of the percent of students scoring in the not yet meeting expectations and partially meeting expectations categories in both the language arts and mathematics subject areas of the State assessments exceeded 40 percent in each of the prior two school years; or

(2) among all students in that school to whom a State assessment was administered, the sum of the percent of students scoring in the not yet meeting expectations and partially meeting expectations categories in either the language arts or mathematics subject areas of the State assessment exceeded 65 percent in each of the prior two school years; or

(3) is listed on the Teacher Cancellation Low Income Directory established by the United States Department of Education.

(4) A school that meets the criteria of paragraph (1) or paragraph (2) of this section shall continue to be designated a low performing public school until such time that the sum of the percent of students scoring in the not yet meeting expectations and partially meeting expectations categories in both the language arts and mathematics subject areas of the State assessments is less than or equal to the sum of the Statewide percent of students scoring in the not yet meeting expectations and partially meeting expectations categories on the corresponding Statewide assessments.

“Program participant” means a person who is employed on the effective date of this act or is initially hired following the effective date of this act by a school district, charter school, or renaissance school to fill a role requiring a bilingual or English as a second language endorsement and who meets the criteria of section 2 of this act, and who has executed a contract with the Higher Education Student Assistance Authority for participation in the loan redemption program. A program participant shall be a resident of New Jersey.

“School district” means a local or regional school district established pursuant to chapter 8 or chapter 13 of Title 18A of the New Jersey Statutes, a county vocational school district established pursuant to article 3 of chapter 54 of Title 18A of the New Jersey Statutes, and a school district under full State intervention pursuant to P.L.1987, c.399 (C.18A:7A-34 et seq.).

2. a. There is established in the Higher Education Student Assistance Authority a loan redemption program for public school teachers who teach in a bilingual education or English as a second language program. The program shall provide for the redemption of eligible student loan expenses of a program participant following the fourth consecutive year of full-time employment as a teacher in a bilingual education or English as a second language program in a public school in which at least 10 percent of the students are enrolled in a bilingual education or English as a second language program. The authority shall give priority under the program to teachers who are employed at a low performing public school.

b. A program participant may redeem eligible student loan expenses upon execution of a contract between the program participant and the authority. The contract shall specify the total amount of debt to be redeemed by the State in return for service pursuant to subsection c. of this section. 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 the number of students enrolled in a bilingual education or English as a second language program falls below 10 percent of total enrollment at the public school in which the teacher is employed or the teacher is transferred to a school in the district that does not meet the enrollment requirements. 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 the public school in which the teacher is employed loses its designation as a low performing public school or the teacher is transferred to a school in the district that is not a low performing public school.

c. The redemption of loans under the loan redemption program shall equal 25 percent of the participant’s eligible student loan expenses, up to $5,000, in return for each consecutive year of full-time employment as a teacher in a bilingual education or English as a second language program in a public school. The total amount of eligible student loan expenses which may be redeemed under the program by a program participant, for four full school years of service, shall not exceed $20,000. A program participant shall submit to the authority proof of eligible employment in a public school prior to redemption of loan indebtedness. A program participant is not required to teach at the same public school for four consecutive years.

d. A program participant who has entered into a redemption contract with the authority may nullify the 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 fulfillment of the contract.

e. In the case of the 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 results in extreme hardship, the authority may nullify or suspend the service obligation of the program participant.

3. The authority shall annually post in a prominent location on its Internet website a list of low-performing schools at which a public school teacher may be employed in order to qualify for loan redemption under the loan redemption program established pursuant to this act.

4. The authority shall annually submit a report on the loan redemption program established pursuant to this act to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1). The report shall be submitted no later than August 1 of each year and shall include, but not be limited to, the total number of participants receiving loan redemption under the program, the total number of participants who withdrew from the program or failed to complete the program's employment requirement, and the effect of the program on filling vacant teaching positions in a bilingual education or English as a second language program.

5. 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.

6. This act shall take effect immediately.

STATEMENT

The bill establishes a loan redemption program in the Higher Education Student Assistance Authority for teachers who teach in a bilingual education or English as a second language program at public schools.

Under the bill, a program participant must be a resident of New Jersey and execute a contract with the authority. The authority will give priority under the program to teachers who are employed at a low performing public school, including a charter school or a renaissance school. The redemption of loans under the program will equal 25 percent of the participant’s eligible student loan expenses, up to $5,000, in return for each consecutive year of full-time employment as a teacher who teaches in a bilingual education or English as a second language program at a public school in which at least 10 percent of the students are enrolled in a bilingual education or English as a second language program. The total amount of eligible student loan expenses that would be redeemed under the program by a program participant, for four full school years of service, will not exceed $20,000. A program participant would not be required to teach at the same public school for four consecutive years.

The bill directs the authority to annually post in a prominent location on its Internet website a list of low-performing schools at which a public school teacher may be employed in order to qualify for loan redemption under the bill.

A program participant who has entered into a redemption contract with the authority may nullify the 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 fulfillment of the contract. In the event of a program participant’s death or total and permanent disability, the authority will nullify the service obligation of the program participant. The nullification will terminate the authority’s obligations under the loan redemption contract.

The authority will annually submit a report on the loan redemption program to the Governor and the Legislature no later than August 1 of each year. The report will include, but not be limited to, the total number of participants receiving loan redemption under the program, the total number of participants who withdrew from the program or failed to complete the program's employment requirement, and the effect of the program on filling vacant teaching positions in a bilingual education or English as a second language program.