Bill
Bill > S2582
NJ S2582
NJ S2582Establishes Grow Your Own Teacher Loan Redemption Program in Higher Education Student Assistance Authority.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill establishes the Grow Your Own Teacher Loan Redemption Program in the Higher Education Student Assistance Authority (HESAA). The purpose of the program is to encourage students who graduated high school from a school district, or lived in a school district, with a shortage of teachers to teach in that school district. Under the bill, HESAA is to offer loan redemption up to $10,000 of principal and interest of eligible student loan expenses for each full year of employment by the program participant. The total loan redemption amount for a program participant, for five years of employment, is not to exceed $50,000. HESAA is not expend more than $500,000 for program implementation in any State fiscal year. To be eligible to participate in the program, an applicant is required to: be a resident of the State and maintain domicile in the State during participation in the program; have previously graduated high school in a school district designated by the Department of Education as having a shortage of teachers during the year in which the applicant submits a program application to HESAA or have resided in the jurisdiction in which the school district is located for more than five years; be hired as a certified teacher by the school district from which the applicant graduated high school or a school district located in a jurisdiction in which the applicant has resided for more than five years, provided that the district is experiencing a shortage of teachers as determined by the department; and have an outstanding balance on a State or federal student loan and not be in default on any loan. A program participant is to enter into a written contract with HESAA to participate in the program. The contract is required to specify the duration of the applicant's required employment, which is to be no less than five years, and the total amount of eligible student loan expenses to be redeemed by the State in return for employment as a teacher in the school district.
AI Summary
This bill establishes the "Grow Your Own Teacher Loan Redemption Program" within the Higher Education Student Assistance Authority (HESAA) to address teacher shortages. The program offers loan redemption, meaning the state will pay off a portion of a participant's student loans, up to $10,000 per year for eligible student loan expenses (which include principal and interest on loans for college), for a maximum of $50,000 over five years of service. To qualify, individuals must be state residents, have graduated from a high school in a district with a teacher shortage or lived in such a district for over five years, and be hired as a certified teacher in that same shortage district. Participants must also have outstanding student loans and not be in default. They will enter into a contract with HESAA outlining their five-year teaching commitment in exchange for loan redemption, with the state allocating no more than $500,000 annually for program implementation. The program allows for nullification of the agreement in cases of death, disability, or extreme hardship, and termination for criminal conviction or gross negligence. Providing false information for loan redemption benefits is a crime.
Committee Categories
Education
Sponsors (3)
Last Action
Introduced in the Senate, Referred to Senate Education Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S2582 |
| BillText | https://pub.njleg.gov/Bills/2026/S3000/2582_I1.HTM |
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