WeVote
Log In

Bill

Bill

S 3631

Establishes Allied Health Care Professional Loan Redemption Program.

2026-2027 Regular Session Introduced by Andrew Zwicker

New Jersey funds loan redemption for allied health professionals who commit to in-state, full-time service for up to four years to address workforce shortages.

Referred to Senate Budget and Appropriations Committee
0
WeVote Research Nonpartisan
Bill Summary · S 3631

Overview

S 3631, from the New Jersey Legislature (Session 222), establishes the Allied Health Care Professional Loan Redemption Program within the Higher Education Student Assistance Authority (HESAA). The program aims to attract and retain allied health care professionals by offering partial redemption of eligible qualifying student loan debt in exchange for service at approved health care facilities or in a home health setting, for up to four one-year periods of service.

Purpose and intent

  • Create a state-funded incentive program to address shortages in allied health care fields.
  • Provide loan redemptions in return for a minimum of year-long service commitments in New Jersey.
  • Ensure program participants remain employed in-state and maintain professional licensure/certification.

Key provisions and changes

  • Definitions:
    • Allied Health Care Professional: a licensed/certified professional in a broad list (e.g., respiratory therapists, phlebotomists, radiologic technologists, therapists, CNAs, LPNs, medical assistants, etc.), with physicians excluded from eligibility unless included by executive director.
    • Eligible qualifying loan expenses: cumulative student loan balances used for costs of attendance and related education/living expenses; interest paid or due is eligible for reimbursement.
    • Health care facility: licensed health care facilities under the state health facilities act.
    • Program participant: allied health professional who contracts with HESAA to provide services in return for loan redemption.
    • Qualifying loan: government or private loans used for tuition and related costs to obtain the degree/credential.
  • Creation of the program:
    • An Allied Health Care Professional Loan Redemption Program within HESAA.
    • Redemption offered for each year of service for up to four one-year periods.
  • Eligibility and enrollment:
    • Must be a state resident.
    • Must have a degree/credential in an allied health field.
    • Must agree to practice in New Jersey as an enrolled program participant.
    • Applicants apply to HESAA; participants sign a contract detailing service duration and loan redemption amount.
    • A minimum one-year full-time employment requirement in the allied health field, prior to any redemption funds.
    • A three-month probationary period at the start of employment.
  • Participant requirements and performance:
    • Participants must adhere to performance standards set by the executive director, including:
    • Maintaining residency in New Jersey.
    • Maintaining active license/certification in New Jersey.
    • Staying current on loan payments.
    • Maintaining satisfactory performance.
    • Reporting performance annually on a prescribed form.
  • Redemption limits and funding:
    • Redemption per year and total redemption amount determined by the executive director.
    • Redemption for each consecutive full year of service (up to four years).
    • The exact total amount of qualifying eligible loan expenses to be redeemed is set by the executive director, subject to available funds.
  • Priority for limited funding:
    • If funds are insufficient to cover all eligible applicants, priority is given to: 1) Applicants with an employment offer at a health care facility or home health agency. 2) Applicants in professions with shortages. 3) Applicants whose income is up to 138% of the Federal Poverty Level. 4) Applicants whose facility provides comprehensive pediatric, behavioral health, preventative, or primary care services. 5) Applicants who graduated from a New Jersey high school or in-state institution.
    • When applicants within a priority category exceed available slots, selection is by lottery.
  • Termination, changes, and hardship:
    • Participants may nullify the contract by notifying HESAA and repaying the portion of loan not yet redeemed.
    • If nullifying before completing the second full year, 50% of redeemed portion must be repaid within 1 year.
    • Death or total/ permanent disability allows HESAA to nullify the obligation; hardship may permit suspension or nullification.
    • No benefits for less than one full calendar year of service.
  • Conflicts with other programs:
    • Ineligible to participate if already enrolled in other state tuition or loan repayment programs, or the federal National Health Service Corps Loan Repayment Program.
  • Outreach and reporting:
    • HESAA to collaborate with higher education and proprietary institutions to publicize the program to students.
    • Annual report to the Governor and Legislature due by August 1, detailing:
    • Number of participants and total redemption amount.
    • Participant demographics, specialties, employers, and almae maters.
    • Average redemption amounts (annual and five-year).
    • Completion and retention in New Jersey practice.
    • Impact on state allied health labor demand.
  • Administrative and funding provisions:
    • HESAA to adopt necessary regulations under the Administrative Procedure Act.
    • Annual appropriation from the General Fund to HESAA to fund the program as needed.
  • Effective date:
    • The act would take effect on the first day of the fourth month after enactment.

Who would be affected

  • Allied health care professionals in New Jersey seeking degree credentials in fields such as therapy, radiology, nursing support roles, dietary and nutrition fields, medical assisting, phlebotomy, sonography, and related allied health occupations (excluding physicians unless redefined by future actions).
  • Health care facilities and home health agencies in New Jersey seeking personnel who may enroll in the program for loan redemption support.
  • Higher education institutions and proprietary credentialing programs offering allied health degrees or credentials, due to program outreach and coordination requirements.
  • HESAA, which would administer the program, determine redemption limits, manage contracts, enforce performance standards, and publish annual reports.

Procedural and timeline aspects

  • Program establishment and administration:
    • Managed by HESAA, with rulemaking and annual reporting obligations.
  • Participant selection:
    • Based on eligibility and funding; priority categories determine who is offered participation first; lottery used when demand exceeds supply within a priority group.
  • Redemption periods:
    • Up to four consecutive one-year terms, tied to service years.
  • Contracts and probation:
    • Each participant signs a contract with service duration, probationary period, and redemption terms.
  • Audits and reporting:
    • Annual reporting by August 1; ongoing program oversight and potential adjustments through regulations.
  • Funding:
    • Ongoing General Fund appropriations to support redemption payments; amount contingent on executive director determinations and annual budget.

Potential impact (summary)

  • Addresses allied health care workforce shortages by linking loan forgiveness to in-state service commitments.
  • Provides financial relief to eligible graduates/credentialed professionals, potentially lowering barriers to entering high-need allied health fields.
  • Establishes structured accountability through performance standards, residency requirements, and annual reporting.
  • Creates a prioritized intake mechanism to allocate limited funds to the highest-need or most strategic applicants.
  • Requires coordination with educational institutions to raise program visibility and applicant pipelines.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.