Bill Text: NJ S929 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires institutions of higher education and government employers to provide certain students and employees with information about Public Service Loan Forgiveness program.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Education Committee [S929 Detail]
Download: New_Jersey-2024-S929-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator KRISTIN M. CORRADO
District 40 (Bergen, Essex and Passaic)
Co-Sponsored by:
Senator Pou
SYNOPSIS
Requires institutions of higher education and government employers to provide certain students and employees with information about Public Service Loan Forgiveness program.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the provision of information about the Public Service Loan Forgiveness program by institutions of higher education and certain employers, and supplementing Title 18A of the New Jersey Statutes and Title 34 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A public or private institution of higher education in the State shall provide each student who has outstanding federal student loan debt with information about the Public Service Loan Forgiveness (PSLF) program.
a. The institution shall provide information about the PSLF program to qualifying students during the academic semester prior to the student's expected graduation and during the academic semester in which the student applies to graduate from the institution.
b. Information about the PSLF program provided by the institution shall notify the student of potential eligibility for the PSLF program, include the Internet address for the PSLF program, and contain 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 of William D. Ford Federal Direct Loans 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 eligible payment plan, including an income-driven repayment plan; and
(5) payment of 120 on-time, full, monthly payments while employed by a qualified employer.
c. The information about the PSLF program may be provided to qualifying students in writing electronically, by regular mail, or in person. The Secretary of Higher Education shall prescribe a model format for the information required by this section.
2. An employer in the State who is designated as a qualifying government employer under the federal Public Service Loan Forgiveness (PSLF) program shall provide all employees with information about the PSLF program.
a. The employer shall provide employees with information about the PSLF program during the explanation of benefits conducted at the beginning of employment and at least once per calendar year.
b. Information about the PSLF program to be provided by government employers shall notify employees of potential eligibility for the PSLF program, include the Internet address for the PSLF program, and provide any information about the employer that is necessary to fill out the application for the PSLF program. The information shall additionally contain 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 of William D. Ford Federal Direct Loans 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 eligible payment plan, including an income-driven repayment plan; and
(5) payment of 120 on-time, full, monthly payments while employed by a qualified employer.
c. The information about the PSLF program may be provided to employees in writing electronically, by regular mail, or in person. The Commissioner of Labor and Workforce Development shall prescribe a model format for the information required by this section.
3. Section 1 of this act shall take effect immediately, and shall be first applicable to the first full academic year following the date of enactment. Section 2 of this act shall take effect 90 days after the date of enactment. The Secretary of Higher Education and Commissioner of Labor and Workforce Development may take such anticipatory action as shall be necessary for the implementation of this act.
STATEMENT
This bill requires public and private institutions of higher education and governmental employers to provide information to certain students and employees, as applicable, concerning the Public Service Loan Forgiveness (PSLF) program.
The PSLF program is an initiative run by the United States Department of Education which offers student loan forgiveness to individuals who have spent ten years working full time in the public service sector. This bill aims at increasing awareness of the PSLF program for students and employees who may qualify for loan forgiveness under the program.
Under this bill, public and private institutions of higher education in the State of New Jersey will be required to provide all students who have outstanding federal student loan debt with information about the PSLF program. This information will be distributed at two points - once during the second to last academic semester of a student's program of study and once during the academic semester in which a student applies to graduate from the institution.
Any employer within the State of New Jersey that is considered a qualifying government employer under the PSLF program will be required to provide employees with information about the PSLF program. Employees hired after the date of enactment of this bill will be provided with the information during the explanation of benefits at the beginning of employment. The United States Department of Education advises an annual submission of the PSLF application, therefore employers will also be required to provide employees with information about the PSLF program at least once per calendar year.
The information provided to students and employees will include notification of potential eligibility for the PSLF program, provide the Internet address for the PSLF program, and explain the eligibility requirements for the PSLF program, which include:
(1) employment with a qualifying employer;
(2) a work schedule of at least 30 hours per week or which meets the employer's definition of full-time work, whichever is greater;
(3) an outstanding balance of William D. Ford Federal Direct Loans or consolidated Federal Direct Loans;
(4) repayment of the loan under an eligible payment plan, which includes an income-driven repayment plan; and
(5) payment of 120 on-time, full monthly payments while employed by a qualified employer.
With respect to the bill's requirements for government employers, any information about the employer necessary for the employee to fill out the PSLF program application will also be provided to the employees. The information about the PSLF program may be distributed in writing electronically, by regular mail, or in person. The Secretary of Higher Education and Commissioner of Labor and Workforce Development will develop a model format for the information.
