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Bill > S1460


NJ S1460

NJ S1460
Requires public service employer to certify employment of qualifying employees under federal Public Service Loan Forgiveness Program; requires Secretary of Higher Education to develop materials to promote Public Service Loan Forgiveness Program.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill requires a public service employer to certify the employment of qualifying employees under the federal Public Service Loan Forgiveness Program. For the purposes of certifying employment for educator employees, the employer is required to credit 3.35 hours worked for each hour of lecture or classroom time. Under the bill, this credit does not supersede any greater adjustment factor established by a collective bargaining agreement or employer policy in recognition of additional work associated with lecture or classroom time for the purpose of the Public Service Loan Forgiveness Program. The bill also provides that, in the event that the United States Department of Education permits public service employers to certify employment for past or present individual employees or groups of employees directly with the department or its agents, notwithstanding any other provision of law, a public service employer is permitted to send to the department or its agents the information necessary for employment certification. Under the bill, in the event that a public service employer does not directly certify employment with the United States Department of Education, the public service employer is required to provide notice of renewal and a copy of the Public Service Loan Forgiveness form with the employer information and employment certification sections of the form already completed to:· any employee who requests a Public Service Loan Forgiveness form;· annually for any current employee for whom the public service employer has previously certified employment; and· upon separation for any employee who is ending his or her work with the public service employer. The bill also requires the Secretary of Higher Education, in consultation with the Student Loan Ombudsman designated within the Department of Banking and Insurance, to develop, and update as necessary, materials designed to promote and increase awareness of the federal Public Service Loan Forgiveness Program, including:· a standardized letter for public service employers to distribute to their employees that briefly summarizes the Public Service Loan Forgiveness Program, provides information about what eligible employees are required to do in order to benefit from the program, and recommends that eligible employees contact their student loan servicer for additional resources;· a detailed fact sheet describing the Public Service Loan Forgiveness Program, including the official website addresses maintained by the United State Department of Education for the program and by the United States Department of the Treasury for student loan borrower resources; and· a document containing frequently asked questions about the Public Service Loan Forgiveness Program. Under the bill, each public service employer is required to annually provide to all employees the most recent available version of those materials in written or electronic form. Each public service employer is required to provide a newly hired employee with those same materials within 30 days of the employee's first day of employment by mail, by electronic mail, or during an in-person new employee orientation.

AI Summary

This bill requires public service employers, which include government entities and certain tax-exempt organizations, to certify employment for employees seeking to benefit from the federal Public Service Loan Forgiveness Program, a federal initiative that forgives student loan debt for individuals working in public service after making 120 qualifying monthly payments. For educators, employers must credit 3.35 hours of work for every hour of lecture or classroom time when certifying employment, though this can be overridden by existing collective bargaining agreements or employer policies. The bill also allows public service employers to directly submit employment certification information to the U.S. Department of Education if permitted, and if not, they must provide employees with renewal notices and pre-filled Public Service Loan Forgiveness forms upon request, annually for current employees whose employment has been certified, and upon separation. Furthermore, the Secretary of Higher Education, in consultation with the Student Loan Ombudsman, will develop and distribute materials, including a standardized letter, a fact sheet, and a FAQ document, to promote awareness of the Public Service Loan Forgiveness Program, which public service employers must provide to all employees annually and to new hires within 30 days of their start date.

Committee Categories

Education

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Higher Education Committee (on 01/13/2026)

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