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Bill

A 3330

Establishes loan redemption program for teachers to redeem loan amounts received under the New Jersey College Loans to Assist State Students Loan Program through employment in public or nonpublic schools in New Jersey.

2026-2027 Regular Session Introduced by Verlina Reynolds-Jackson and 1 co-sponsor

The bill creates the NJCLASS Teacher Loan Redemption Program offering 10% loan redemption per full year of service for NJ teachers.

Introduced, Referred to Assembly Higher Education Committee
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Bill Summary · A 3330

Summary of Bill A-3330 (Session 222) – New Jersey

Purpose and aim

This bill establishes the NJCLASS Teacher Loan Redemption Program within the Higher Education Student Assistance Authority (HESAA). The program is designed to reduce the student loan debt of teachers by redeeming a portion of NJCLASS loans for each year of service as a teacher in New Jersey public or nonpublic schools.

Key provisions

  • Program location and governance

    • Created: New NJCLASS Teacher Loan Redemption Program within HESAA.
    • HESAA would administer the program, with rules adopted in consultation with the Department of Education under the Administrative Procedure Act.

  • Definitions and scope

    • Clarifies terms for participants:
    • Program participant: An undergraduate NJCLASS loan borrower who is a New Jersey resident, employed as a teacher in a New Jersey public or nonpublic school, and who signs a participation contract.
    • Public school: New Jersey schools operated by a district or a charter school.
    • Nonpublic school: A private, nonprofit K-12 school in New Jersey that meets civil rights requirements.
    • Teacher: Direct classroom teaching or closely related instructional services; certain support roles (e.g., administrators) do not qualify unless they provide direct student instruction.

  • Participation and contract

    • Eligible participants must have been NJCLASS borrowers and must obtain initial teaching employment after the bill’s effective date.
    • Participants sign a contract with HESAA for a specified number of one-year service periods, detailing the total debt to be redeemed.

  • Redemption amount and service requirements

    • Redemption = 10% of the participant’s NJCLASS loan principal and interest for each full year of service.
    • Service must cover a full school year to qualify for redemption; partial-year service does not qualify.
    • Before each redemption, the participant must provide proof of employment in a public or nonpublic school.

  • Voluntary termination and extraordinary events

    • Participants may cancel the contract by notifying the authority and taking full responsibility for remaining loan amounts not yet redeemed.
    • If a participant dies or becomes totally and permanently disabled, the contract may be nullified with conditions:
    • Death or disability may terminate the obligation, with redemption for the current year if disability or death occurs after the second year of service.
    • The authority may nullify or suspend obligations in cases of extreme hardship.

  • Effective date

    • The act takes effect immediately upon enactment.

Who is affected

  • Undergraduate NJCLASS borrowers who become New Jersey-licensed teachers and meet residency and eligibility criteria.
  • Public and nonpublic K–12 schools in New Jersey (as employers of participating teachers).
  • HESAA and the New Jersey Department of Education (for program administration and policy coordination).

Procedural/timeline considerations

  • Establishment of the program and its rules through regulatory action (Administrative Procedure Act).
  • Contracts would specify the duration and total eligible debt to be redeemed.
  • Annual redemptions occur only after verified full-year teaching service.

Potential impact

  • Provides a financial incentive (10% per full year of service) to attract and retain teachers in New Jersey schools.
  • Targets NJCLASS loan borrowers, potentially expanding the pool of teachers who pursue loan redemption as a benefit.
  • Requires administrative setup and ongoing verification of employment and service year eligibility.

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

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