Bill Text: NJ A5109 | 2016-2017 | Regular Session | Introduced
Bill Title: Permits institution of higher education to establish income share program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-07-13 - Introduced, Referred to Assembly Higher Education Committee [A5109 Detail]
Download: New_Jersey-2016-A5109-Introduced.html
Sponsored by:
Assemblyman TIM EUSTACE
District 38 (Bergen and Passaic)
SYNOPSIS
Permits institution of higher education to establish income share program.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing establishment of income share programs at institutions of higher education and supplementing chapter 3B of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section, "income share agreement" means an agreement in which a college student agrees to repay a percentage of post-graduation income for a fixed period of time in exchange for an institution of higher education waiving all or a portion of the student's tuition and other education expenses.
b. An institution of higher education may establish an income share program. The purpose of the program shall be to provide students with an alternative option for financing higher education costs. Under the program, a student and the institution of higher education at which the student is enrolled may enter into an income share agreement.
c. An income share program established pursuant to this section shall include policies that:
(1) establish a cap on the amount a student may have to repay under the program;
(2) allow for payment deferment in the event the student enrolls in a graduate education program or takes a personal leave from employment;
(3) limit the amount of tuition and education expenses a student may have waived under the program; and
(4) establish any other terms or conditions which are deemed necessary by the institution.
2. This act shall take effect immediately.
STATEMENT
This bill permits an institution of higher education to establish an income share program. The purpose of income share programs is to provide students with an alternative to taking out loans for financing higher education costs. Under the program, a student and the institution of higher education at which the student is enrolled may enter into an income share agreement. An income share agreement is an agreement in which a student agrees to repay a percentage of post-graduation income for a fixed period of time in exchange for an institution of higher education waiving all or a portion of the student's tuition and other education expenses.
Under the bill, an income share program must include policies that:
(1) establish a cap on the amount a student may have to repay;
(2) allow for payment deferment in certain circumstances;
(3) limit the amount of tuition and education expenses a student may have waived under the program; and
(4) establish any other terms or conditions deemed necessary by the institution.
