Bill Text: NJ S544 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes the Garden State New Millennium Loan and Loan Redemption Program; appropriates $5,000,000.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Education Committee [S544 Detail]
Download: New_Jersey-2010-S544-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Establishes the Garden State New Millennium Loan and Loan Redemption Program; appropriates $5,000,000.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act establishing the Garden State New Millennium Loan and Loan Redemption Program, supplementing chapter 71C of Title 18A of the New Jersey Statutes and making an appropriation.
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 New Millennium Loan and Loan Redemption Program Act."
2. The Legislature finds and declares that a loan and loan redemption program which provides an incentive to New Jersey students to pursue higher education and training in science, technology and related fields that are essential to economic development will assist in ensuring a sustained pool of highly trained technology workers and will improve this State's ability to attract and retain business.
3. As used in this act:
"Approved course of study" means a degree program offered by an approved higher education institution that provides instruction in science, technology and related fields. The authority shall establish a list of approved courses of study for the program;
"Approved employment" means postgraduate, full-time employment with an employer located in this State in an occupation related to an approved course of study. The term shall not include a paid student internship, a paid fellowship, volunteer service or employment before graduation;
"Approved higher education institution" means a two-year or four-year public or independent institution of higher education located in this State that offers an approved course of study or a proprietary institution authorized to grant degrees by the New Jersey Commission on Higher Education that offers an approved course of study, and has been approved by the authority as an institution in which students may enroll to participate in the program;
"Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3;
"Executive director" means the executive director of the Higher Education Student Assistance Authority;
"Participant" means a person who is enrolled as a full-time student in an approved higher education institution pursuant to a redemption contract under the Garden State New Millennium Loan and Loan Redemption Program; and
"Program" means the Garden State New Millennium Loan and Loan Redemption Program established pursuant to section 4 of this act.
4. There is established within the Higher Education Student Assistance Authority a Garden State New Millennium Loan and Loan Redemption Program. The program shall provide direct loans to finance the undergraduate study of eligible students enrolled in an approved course of study and the redemption of a portion of the student loan expenses of program participants for each year of postgraduate, full-time employment in an occupation related to an approved course of study.
The purpose of the program is to provide an incentive to students to pursue higher education and training in science, technology and related fields essential to the economic development of the State.
5. To be eligible to participate in the program, an applicant shall meet all of the following requirements:
a. be a resident of the State and maintain domicile in the State during participation in the program;
b. maintain a grade point average of 3.0 or higher on a scale of 4.0, or its equivalent, while enrolled in an approved course of study;
c. complete an internship or work experience in a science, technology or related field with an employer located in the State prior to completion of the approved course of study; and
d. enter into a written agreement with the authority to commence employment in this State in a science, technology or related field within one year after completion of an approved course of study, or within one year after completion of a related graduate program, for a period of one year for each academic year the student received a loan under program.
6. a. Within the limit of available appropriations, direct loans shall be made to an eligible participant enrolled in a four-year approved course of study up to a maximum of $10,000 per year. The maximum indebtedness for a participant in a four-year approved course of study shall not exceed $40,000. If a participant is enrolled in an approved course of study regularly requiring five academic years, the participant shall be eligible for a loan in the fifth year provided he continues to meet all other eligibility criteria for the program.
b. Within the limit of available appropriations, direct loans shall be made to an eligible participant enrolled in a two-year approved course of study up to a maximum of $4,000 per year. The maximum indebtedness for a participant in a two-year approved course of study shall not exceed $8,000. If a participant is enrolled in an approved course of study regularly requiring three academic years, the participant shall be eligible for a loan in the third year provided he continues to meet all other eligibility criteria for the program.
c. A loan shall cover the cost of attendance which includes tuition, books and other necessary fees and expenses related to the approved course of study. In no academic year shall a participant be eligible for a loan greater than the total cost of attendance, less the total value of all scholarships and grants received by the participant for that academic year.
d. A student may apply to the authority for a loan in such manner as prescribed by the authority and shall include all information and documentation required by the authority. The application of a student under 18 years of age shall include the signature of a parent or guardian. Direct loans shall be evidenced by promissory notes and may be secured pursuant to regulations and forms established by the executive director.
7. a. Direct loans made pursuant to section 6 of this act shall be redeemed by a participant upon execution of a contract between the participant and the executive director. The maximum loan redemption shall amount to cancellation of repayment of 20% of the eligible loan indebtedness for each full year of approved employment completed by the participant for total cancellation of loan indebtedness of up to $40,000 for a participant enrolled in a four-year approved course of study or up to $8,000 for a participant enrolled in a two-year approved course of study.
b. Direct loans shall not bear interest or finance charges during the time a student is enrolled in the program or is engaged in approved employment pursuant to this act. Direct loans shall become due and payable pursuant to section 8 of this act, six months after graduation if no redemption contract is in effect, or six months after change to part-time student status, withdrawal from the program or termination from approved employment.
c. Prior to the annual redemption of loan indebtedness, a participant shall submit proof of required employment to the authority. In no event shall employment for less than a full year entitle the participant to any benefits under the loan redemption conditions of the program. The authority shall enforce repayment of all loans for a participant who does not comply with the provisions of this act, including the use of all lawful collection procedures and the use of private collection agencies.
8. A participant who has entered into a redemption contract with the authority may nullify the contract by submitting written notification and assuming full responsibility for repayment of the full amount of the loan or that portion of the loan which has not been redeemed by the State in return for partial fulfillment of the contract. The interest on the loan shall be equal to the prevailing market rate at the time the loan was made. The participant seeking to nullify the contract shall be required to repay the loan or the unredeemed portion thereof in accordance with a schedule determined by the authority.
9. In case of a participant's death or total or permanent disability, the executive director shall nullify the service obligation, thereby terminating the participant's obligation to repay the unpaid balance of the loan; or where continued enforcement of the contract may result in extreme hardship, the executive director may nullify or suspend the participant's service obligation.
10. The authority shall annually submit to the Governor, the chairman of the Senate Budget and Appropriations Committee, the chairman of the Assembly Appropriations Committee and the chairmen of the Senate and Assembly Education Committees, a report on the Garden State New Millennium Loan and Loan Redemption Program. 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. total number of participants receiving loans under the program;
b. total number of participants who withdraw from the program or fail to complete the program's approved employment requirement;
c. a breakdown of the number of participants attending four-year and two-year institutions of higher education and proprietary institutions, reported by institution, and the approved courses of study in which participants are enrolled; and
d. the effect of the program on attracting and retaining workers in science and technology employment within the State.
11. The Higher Education Student Assistance Authority, in consultation with the executive director of the New Jersey Commission on Higher Education, shall adopt in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act.
12. There is appropriated from the General Fund $5,000,000 to the Higher Education Student Assistance Authority to establish the Garden State New Millennium Loan and Loan Redemption Program.
13. This act shall take effect for the 2005-2006 academic year; however, the authority may immediately take such administrative action as may be necessary to implement the provisions of this act.
STATEMENT
This bill establishes the Garden State New Millennium Loan and Loan Redemption Program within the Higher Education Student Assistance Authority. The purpose of the program is to provide an incentive to New Jersey students to pursue higher education in science, technology and related fields essential to the economic development in this State and to create a pool of highly trained workers which will improve the State's ability to attract and retain business. A program participant would receive a direct loan to finance undergraduate study in an approved course of study at a public or independent institute of higher education or certain proprietary schools and the redemption of a portion of the student loan expenses for each year of postgraduate, full-time employment in an occupation related to an approved course of study.
Under the bill, a participant enrolled in a four-year approved course of study could receive direct loans of up to $10,000 per year, for a maximum loan amount of $40,000. A participant attending a two-year approved course of study could receive up to $4,000 per year for a maximum loan amount of $8,000. Direct loans would cover the cost of tuition, books and mandatory fees.
The maximum loan redemption for a participant would amount to the cancellation of repayment of 20% of the eligible loan indebtedness for each full year of approved employment completed by the participant for total cancellation of loan indebtedness of up to $40,000 for a participant enrolled in a four-year approved course of study or up to $8,000 for a participant enrolled in a two-year approved course of study.
To participate in the program, an applicant must meet the following eligibility criteria:
a. be a resident of the State and maintain domicile in the State during participation in the program;
b. maintain a grade point average of 3.0 or higher on a scale of 4.0, or its equivalent, while enrolled in an approved course of study;
c. complete an internship or work experience in a science, technology or related field with an employer located in the State prior to completion of the approved course of study; and
d. enter into a written agreement with the authority to commence employment in this State in a science, technology or a related field after completion of an approved course of study for a period of one year for each academic year the student received a loan under program.
A participant could nullify the redemption contract by submitting written notification to the authority. If a redemption contract is nullified, the participant would be fully responsible for repayment of the entire loan amount or any unredeemed portion, including interest and finance charges. In the case of death or disability, the executive director can nullify the service obligation of the participant.
Under the bill's provisions, the authority is required to annually submit a report to the Governor, the chairman of the Senate Budget and Appropriations Committee, the chairman of the Assembly Appropriations Committee, and the chairmen of the Senate and Assembly Education Committees. The report must be submitted by August 1 and must include information on the success of the scholarship program in attracting workers to science and technology employment within the State.
