Bill Text: NJ A5662 | 2020-2021 | Regular Session | Introduced

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Bill Title: Requires certain employers to provide certain employees with notifications concerning federal Public Service Loan Forgiveness program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-05-12 - Introduced, Referred to Assembly Labor Committee [A5662 Detail]

Download: New_Jersey-2020-A5662-Introduced.html

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ASSEMBLY, No. 5662

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED MAY 12, 2021

 

 

Sponsored by:

Assemblyman  WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

 

 

 

 

SYNOPSIS

     Requires certain employers to provide certain employees with notifications concerning federal Public Service Loan Forgiveness program.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the explanation of benefits to new employees and supplementing Title 34 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    An employer in the State who is designated as a qualifying employer under the federal Public Service Loan Forgiveness Program (PSLF), established under the "College Cost Reduction and Access Act" (20 U.S.C. s.1087e), shall notify an employee during the explanation of benefits conducted at the beginning of employment of:

     a.     potential eligibility for the PSLF program; and

     b.    the requirements to be eligible for the PSLF program, which include, but are not limited to, the following:

     (1)   employment with a qualifying employer;

     (2)   a work schedule of at least 30 hours per week with the qualifying employer or a schedule that meets the qualifying employer's definition of full-time work, whichever is greater;

     (3)   a balance with the William D. Ford Federal Direct Loan (Direct Loan) Program offered by the U.S. Department of Education or consolidation of other federal student loans into a Direct Loan;

     (4)   repayment of a Direct Loan under an income-driven repayment plan; and

     (5)   payment of 120 monthly payments.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires an employer in the State who is designated as a qualifying employer under the federal Public Service Loan Forgiveness Program (PSLF), established under the "College Cost Reduction and Access Act," to provide information concerning the PSLF program to employees during the explanation of benefits conducted at the beginning of employment.

     Under this bill, a qualifying employer will be required to notify an employee about potential eligibility for the PSLF program and of the requirements to qualify for the PSLF program, which include, but are not limited to, the following:

·        employment by a qualifying employer;

·        a work schedule of at least 30 hours per week for the qualifying employer or a schedule that meets the qualifying employer's definition of full-time work, whichever is greater;

·        a balance with the William D. Ford Federal Direct Loan (Direct Loan) Program offered by the U.S. Department of Education or consolidation of other federal student loans into a Direct Loan;

·        repayment of loans under an income-driven repayment plan; and

·         payment of 120 payments.