Bill Text: NJ A3927 | 2010-2011 | Regular Session | Introduced


Bill Title: Establishes a loan redemption program for teachers employed in chronically failing schools.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-05-05 - Introduced, Referred to Assembly Education Committee [A3927 Detail]

Download: New_Jersey-2010-A3927-Introduced.html

ASSEMBLY, No. 3927

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED MAY 5, 2011

 


 

Sponsored by:

Assemblywoman  ANNETTE QUIJANO

District 20 (Union)

 

 

 

 

SYNOPSIS

     Establishes a loan redemption program for teachers employed in chronically failing schools.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act establishing a loan redemption program for certain 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.

     "Chronically failing school" means any public school that meets the criteria of paragraph (1) or paragraph (2):

     (1)   among all students in that school to whom a State assessment was administered, the percent of students scoring in the partially proficient range in both the language arts and mathematics subject areas of the State assessments exceeded 40% in each of the prior two school years; or

     (2)   among all students in that school to whom a State assessment was administered, the percent of students scoring in the partially proficient range in either the language arts or mathematics subject areas of the State assessment exceeded 65% in each of the prior two school years.

     (3)   A school shall continue to be designated a chronically failing school until such time that the percent of students scoring in the partially proficient range in both the language arts and mathematics subject areas of the State assessments is less than or equal to the Statewide percent of students scoring in the partially proficient range on the corresponding Statewide assessments.

     "Eligible student loan expenses" means 100% of the cumulative total 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.

     "Program participant" means a person who, following the effective date of this act, is initially hired as a teacher by a school district to work in a chronically failing school, and 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.

 

     2.    a.  There is established in the Higher Education Student Assistance Authority a loan redemption program for teachers employed in chronically failing schools. The program shall provide for the redemption of a portion of the eligible student loan expenses of a program participant for each year of service teaching full-time in a chronically failing 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 be for a specified number of one-year periods and shall specify the total amount of debt 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 the public school in which the teacher is employed loses its designation as a chronically failing school or the teacher is transferred to a school in the district that is not a chronically failing school.

     d.    (1)  Except as otherwise provided pursuant to paragraph (2) of this subsection, the maximum redemption of loans under the loan redemption program shall amount to 10% of principal and interest of eligible student loan expenses in return for one full year of service teaching in a chronically failing school, for a total redemption of 100% of eligible student loan expenses in return for ten full years of service. Eligible loans shall not be redeemed for service of less that one full school year annually. A program participant shall annually submit to the authority proof of eligible employment in a chronically failing school prior to the annual redemption of loan indebtedness.

     (2)   The initial contract entered into between a program participant and the authority shall provide for the maximum redemption of 10% of principal and interest of eligible student loan expenses in return for one full year of service teaching in a chronically failing school, for a total redemption of 50% of eligible student loan expenses in return for five full years of service. If, at the end of that contract period, the board of education of the school district in which the chronically failing school is located provides a statement to the authority that the program participant's performance as a teacher in the district has been satisfactory, the authority may enter into a subsequent contract with the program participant for the maximum redemption of 10% of principal and interest of eligible student loan expenses in return for one full year of service teaching in a chronically failing school, for a total redemption of the remaining 50% of eligible student loan expenses in return for five full years of service.

     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 or 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, except in the event that a program participant's death or total and permanent disability occurs after the second year of service, the authority shall redeem the current year of service. 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 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, information on the total number of participants receiving loan redemption under the program, the impact of the program on attracting teachers to positions in chronically failing schools, the impact of the program on improving student scores on State assessments, and the number of participants who withdrew from the program prior to the completion of the required service.

 

     4.    The authority, in consultation with the Department of Education, shall adopt pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act.

 

     5.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill establishes a loan redemption program in the Higher Education Students Assistance Authority (HESAA) for teachers employed in chronically failing public schools. The bill defines a chronically failing school as any public school that: (1) among all students in that school to whom a State assessment was administered, the percent of students scoring in the partially proficient range in both the language arts and mathematics subject areas of the State assessments exceeded 40% in each of the prior two school years; or, (2) among all students in that school to whom a State assessment was administered, the percent of students scoring in the partially proficient range in either the language arts or mathematics subject areas of the State assessment exceeded 65% in each of the prior two school years.

     Under the program, a participant would redeem 10% of eligible student loan expenses for each year of service as a teacher in a chronically failing school in New Jersey, for a total redemption of 100% of eligible student loan expenses in return for ten full years of service. The initial contract entered into between a program participant and HESAA would provide for redemption of 10% of principal and interest of eligible student loan expenses in return for one full year of service, for a total redemption of 50% of eligible student loan expenses for five full years of service. If, at the end of that contract period, a board of education of the school district in which the chronically failing school is located provides a statement to HESAA that the program participant's performance as a teacher in the district has been satisfactory, HESAA may enter into a subsequent contract with the program participant. The subsequent contract would provide for the redemption of the remaining 50% of eligible student loan expenses in return for five full years of service. "Eligible student loan expenses" is defined as the cumulative total 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.

     Under the bill, the authority must annually submit a report on the program to the Governor and the Legislature. The report will be submitted no later than August 1 of each year and will include, at a minimum, information on the total number of participants receiving loan redemption under the program, the impact of the program on attracting teachers to positions in chronically failing schools, the impact of the program on improving student scores on State assessments, and the number of participants who withdrew from the program prior to the completion of the required service.

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