Bill Text: NJ A3894 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes Loan Redemption Program for Healthcare Professionals in Underserved Counties within Higher Education Student Assistance Authority.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-05-09 - Introduced, Referred to Assembly Higher Education Committee [A3894 Detail]
Download: New_Jersey-2022-A3894-Introduced.html
Sponsored by:
Assemblywoman BETHANNE MCCARTHY PATRICK
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Establishes Loan Redemption Program for Healthcare Professionals in Underserved Counties within Higher Education Student Assistance Authority.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning student loan forgiveness for certain healthcare professionals 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 course of study" means an undergraduate program leading to a bachelor's degree in medicine, osteopathic medicine, dentistry, behavioral and mental healthcare, or other healthcare profession offered by a four-year public or independent institution of higher education; a graduate program leading to a master's degree, doctorate, or other similar degree in medicine, osteopathic medicine, dentistry, behavioral and mental healthcare, or other healthcare profession offered by a public or independent institution of higher education; or a program leading to certification as a nurse midwife, nurse practitioner, or physician assistant.
"Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3.
"Eligible student loan expenses" mean the cumulative outstanding balance of student loans, covering the cost of attendance while enrolled in an approved course of study. Interest paid or due on student loans that a program participant has taken out for use in paying the costs of attendance at an institution of higher education shall be considered eligible for reimbursement under the program.
"Program" means the Loan Redemption Program for Healthcare Professionals in Underserved Counties established pursuant to this act.
"Program participant" means a healthcare professional who has executed a contract with the authority for participation in the program, and who has a degree in medicine, osteopathic medicine, dentistry, behavioral and mental healthcare, or other healthcare profession; or is certified as a nurse midwife, nurse practitioner, or physician assistant.
2. There is established the Loan Redemption Program for Healthcare Professionals in Underserved Counties within the Higher Education Student Assistance Authority. The purpose of the program shall be to incentivize healthcare professionals to work in counties where there are shortages of healthcare services. The program shall match the redemption of eligible student loan expenses of a program participant redeemed under the National Health Service Corps Loan Repayment Program established pursuant to 42 U.S.C. s.254l-1 et seq. for each year of full-time or half-time employment in counties with a shortage of healthcare services. The Department of Health shall be responsible for defining which counties have a shortage of healthcare services and providing a list of those counties to the Higher Education Student Assistance Authority to assist the authority in administering the program.
3. To be eligible to participate in the program, an applicant shall:
a. be a resident of the State and maintain domicile in the State during participation in the program;
b. have successfully completed an approved course of study within a five-year period prior to applying for the program;
c. have an outstanding balance with a State or federal student loan program and not be in default on any student loan;
d. have been approved to participate in the National Health Service Corps Loan Repayment Program established pursuant to 42 U.S.C. s.254l-1 et seq.;
e. be currently working, or plan to work, in a full-time or half-time capacity in a county with a shortage of healthcare services, as defined by the National Health Service Corps Loan Repayment Program; and
f. be a licensed healthcare professional.
4. a. An individual may apply to the authority to participate in the program in such a manner as the authority prescribes and shall include all information and documentation required by the authority.
b. A program participant shall enter into a written contract with the authority to participate in the program. The contract shall specify: (1) the duration of the applicant's required employment as a healthcare professional in a county with a shortage of healthcare services, which shall be for a period of one or two years; and (2) the total amount of eligible student loan expenses to be redeemed by the State in return for employment as a healthcare professional, which shall not exceed $50,000
c. Loans redeemed under the program shall be in such amounts of principal and interest of eligible student loan expenses redeemed as part of the National Health Service Corps Loan Repayment Program established pursuant to 42 U.S.C. s.254l-1 et seq. No amount of loan redemption shall be provided for employment performed for less than a full year.
d. The period of service shall commence on or after the date of enactment of this act.
5. a. 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 the full amount of the participant's loan or that portion of the loan that has not been redeemed by the State in return for partial fulfillment of the contract.
b. In the case of a program participant's death or total or permanent disability, the authority shall nullify the service obligation of the participant, thereby terminating the participant's service obligation; or where continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the participant's service obligation.
6. The authority shall annually submit a report on the program 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 following information for the prior fiscal year:
a. the total number of participants receiving loan redemption under the program;
b. the impact of the program on attracting individuals to work in counties with a shortage of healthcare services; and
c. the total number of participants who withdrew from the program and failed to complete the program's requirements.
7. The program shall be financed using available funds received by the State pursuant to the "American Rescue Plan (ARP) Act of 2021," Pub.L.117-2, private contributions, and any other annual appropriation made by the State to effectuate the purposes of this act.
8. The Higher Education Student Assistance Authority, in consultation with the Department of Health, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations necessary to implement the provisions of this act.
9. This act shall take effect on the 90th day after the date of enactment.
STATEMENT
This bill establishes the Loan Redemption Program for Healthcare Professionals in Underserved Counties within the Higher Education Student Assistance Authority. The purpose of the program would be to incentivize healthcare professionals to work in areas where there are shortages of healthcare services. The program would match the redemption of eligible student loan expenses of a program participant redeemed under the National Health Service Corps Loan Repayment Program for each year of full-time or half-time employment in counties with a shortage of healthcare services. The Department of Health would be responsible for defining which counties have a shortage of healthcare services and providing a list of those counties to the Higher Education Student Assistance Authority to assist the authority in administering the program. The National Health Service Corps Loan Repayment Program, administered through the United States Department of Health and Human Services, offers primary medical, dental, and mental and behavioral health care professionals the opportunity to have their student loans repaid, while earning a competitive salary, in exchange for providing health care in urban, rural, or tribal communities with limited access to healthcare services.
To be eligible to participate in the program, an applicant is required to:
· be a resident of the State and maintain domicile in the State during participation in the program;
· have successfully completed an approved course of study within a five-year period prior to applying for the program;
· have an outstanding balance with a State or federal student loan program and not be in default on any student loan;
· have been approved to participate in the National Health Service Corps Loan Repayment Program;
· be planning to begin work, in a full-time or half-time capacity, in a county with a shortage of healthcare services, as defined by the National Health Service Corps Loan Repayment Program; and
· be a licensed healthcare professional.
An individual may apply to the authority to participate in the program in such a manner as the authority prescribes and would be required to include all information and documentation required by the authority. Once accepted, a program participant would enter into a written contract with the authority to participate in the program. The contract would specify: (1) the duration of the applicant's required employment as a healthcare professional in a county with a shortage of healthcare services, which is required to be one to two years; and (2) the total amount of eligible student loan expenses to be redeemed by the State in return for employment as a healthcare professional. Loans redeemed under the program would be in such amounts of principal and interest of eligible student loan expenses redeemed as part of the National Health Service Corps Loan Repayment Program and would not exceed $50,000. No amount of loan redemption would be provided for employment performed for less than a full year. The period of service that will be eligible for redemption would commence on or after the date of enactment of the bill.
The authority would be required to annually submit a report on the program to the Governor, and to the Legislature. The report is required to be submitted no later than August 1 of each year and would include, but not be limited to, the following information for the prior fiscal year:
· the total number of participants receiving loan redemption under the program;
· the impact of the program on attracting individuals to work in counties with a shortage of healthcare services; and
· the total number of participants who withdrew from the program and failed to complete the program's requirements.
The program would be financed using funds received by the State pursuant to the "American Rescue Plan (ARP) Act of 2021," private contributions, and any other annual appropriation made by the State to effectuate the purposes of this act.
