Bill Text: NJ S2941 | 2016-2017 | Regular Session | Introduced
Bill Title: Establishes Garden State Young Farmers Loan Redemption Program in Higher Education Student Assistance Authority.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-01-30 - Introduced in the Senate, Referred to Senate Higher Education Committee [S2941 Detail]
Download: New_Jersey-2016-S2941-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Establishes Garden State Young Farmers Loan Redemption Program in Higher Education Student Assistance Authority.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Garden State Young Farmers Loan Redemption Program 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. This act shall be known and may be cited as the "Garden State Young Farmers Loan Redemption Program Act."
2. As used in this act:
"Approved course of study" means an undergraduate program leading to a bachelor's degree offered by a four-year public or independent institution of higher education.
"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 Garden State Young Farmers Loan Redemption Program established pursuant to this act.
"Program participant" means a person who has executed a contract with the authority for participation in the program.
3. a. There is established the Garden State Young Farmers Loan Redemption Program within the Higher Education Student Assistance Authority. The purpose of the program is to provide an incentive for individuals to begin a career in farming. The program shall provide for the redemption of a portion of the eligible student loan expenses of a program participant for each year of full-time employment as a farmer.
b. The authority shall limit the number of participants to a total of ten participants in each program year.
4. 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 two-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; and
d. operate, or plan to operate, a farm in the State on a full-time basis.
5. 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 the duration of the applicant's required operation of a farm, which shall be no less than five years, and the total amount of eligible student loan expenses to be redeemed by the State in return for service.
c. The redemption of loans under the program shall not exceed $10,000 of principal and interest of eligible student loan expenses for each full year of employment satisfactorily completed by the program participant. The total loan redemption amount for a program participant, for five years of employment, shall not exceed $50,000. 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.
6. a. A program participant who has entered into a redemption contract with the authority may nullify that 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.
7. 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 farming; and
c. the total number of participants who withdrew from the program and failed to complete the program's requirements.
8. The Higher Education Student Assistance Authority, in consultation with the Department of Agriculture, 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 Garden State Young Farmers Loan Redemption Program within the Higher Education Student Assistance Authority (HESAA). The purpose of the program is to provide an incentive for individuals to begin a career in farming. The program will provide for the redemption of a portion of the eligible student loan expenses of program participants for each year of full-time employment as a farmer.
Under the bill, HESAA will offer loan redemption for up to a total of ten participants in each program year. Loan redemption for each participant is capped at $10,000 a year, with a maximum five year loan redemption value of $50,000. To be eligible to participate in the program, an applicant must: 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 two-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; and operate, or plan to operate, a farm in the State on a full-time basis.
A program participant will enter into a written contract with HESAA to participate in the program. The contract will specify the duration of the applicant's required operation of a farm, which will be no less than five years, and the total amount of eligible student loan expenses to be redeemed by the State in return for service.
