Bill > A2171

Introduced Session

This bill requires State agencies to enroll State employees into the federal Public Service Loan Forgiveness Program. The federal Public Service Loan Forgiveness Program (PSLF) was established by Congress under the "College Cost Reduction and Access Act." The program forgives the remaining balance on a borrower's federal Direct Loans after 120 qualifying month payments have been made under a qualifying repayment plan while working full-time for a qualifying employer, such as the New Jersey State government. The federal government recently temporarily expanded the eligibility of the PSLF program to increase the number of borrowers who are eligible for loan relief regardless of the type of federal loan or repayment plan they have. On average, New Jersey student loan borrowers carry $36,500 in student loan debt, which is among the highest amounts in the country. In total, New Jersey student loan borrowers carry a debt load of over $40 billion. The PSLF program is one way in which borrowers have found relief from the rising costs of student loans. According to a press conference held by the Governor and federal Department of Education officials, more than 2,500 State residents have had $167 million in debt canceled at an average waiver of over $65,000 per person. Additionally, approximately 31,000 New Jersey residents are enrolled in the PSLF program. This bill requires each State agency to notify and enroll any qualified State employee into the PSLF program. Each agency will take the necessary steps to identify and enroll into the PSFL program those State employees who meet the qualifications for enrollment under the program. The New Jersey Department of Education will enter into an agreement with the United States Department of Education to match information in the State's employment database with the federal database on qualified federal student loans. The information received by the New Jersey Department of Education will be distributed to the appropriate State agencies to accurately identify those individuals qualified for enrollment in the PSLF program. The bill also establishes a process to ensure new hires would be automatically enrolled as well as State employees who move from one State agency to another.

AI Summary

Committee Categories

Bill Moen (D)*,  Chris Tully (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2024)

Official Document