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A 1593

Establishes the "Student Loan Assistance and Home Purchase Act."

2024-2025 Regular Session Introduced by Wayne DeAngelo and 1 co-sponsor

New Jersey would allow education debt to be folded into a first-home loan, enabling purchase of near-eligible foreclosed homes and requiring a five-year primary residence.

Introduced in the Assembly, Referred to Assembly Higher Education Committee
#educfinance #housingfin
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Bill Summary · A 1593

Summary: New Jersey A-1593 — New Jersey Student Loan Assistance and Home Purchase Act

Overview
- Bill number: A-1593
- Title: Establishes the "New Jersey Student Loan Assistance and Home Purchase Act."
- Introduced: January 10, 2025
- Status: Introduced in the Assembly, referred to Assembly Higher Education Committee
- Sponsor: Primary — Linda Rosenthal; Cosponsor — Steven Otis
- Subject: Education Finance, Housing Finance

Purpose
- Create a state program to help individuals burdened by student loan debt purchase their first homes by allowing the borrower’s education-related debt to be incorporated into a home loan.
- The program is designed to facilitate homeownership for borrowers facing high student debt and interest rates, by leveraging financing opportunities administered by the New Jersey Housing and Mortgage Finance Agency (NJHMFA).

Key Provisions and Requirements
- Program Establishment and Administration
- The Executive Director of NJHMFA must establish the Student Loan Assistance and Home Purchase program, to be administered by NJHMFA.
- A program manager will be appointed to oversee implementation and to establish a list of “near eligible” properties available for purchase through the program.

  • Eligible Properties

    • “Eligible property” means foreclosed residential single-family homes in near move-in condition.
    • Determination criteria include: (1) cleanliness, (2) structural integrity, (3) expected maintenance costs, (4) property location, and (5) general habitability.
    • The program will maintain a list of near eligible properties for potential purchase.

  • Financing and Debt Incorporation

    • The program allows the borrower’s education-related debt to be incorporated into the home loan, wholly or in part.
    • There is no specified cap on the amount of education debt that may be incorporated, provided all other federal and State requirements are met.
    • The program must comply with applicable federal regulations.

  • Use and Ownership Requirements

    • Participants must maintain the purchased home as their primary residence for at least five years from the closing date.
    • Penalties and fees may be imposed by the program if the five-year primary residence requirement is not satisfied.

  • Regulations and Implementation Timeline

    • By the first day of the seventh month after the act’s effective date, the NJHMFA Executive Director must establish rules and regulations pursuant to the Administrative Procedure Act.
    • Regulations must address: (1) eligibility for participants with education-related debt; (2) interest rates and other penalties, charges, and fees necessary to implement the program.

  • Effective Date

    • The act takes effect immediately upon enactment.

Impact and Affected Parties
- Primary beneficiaries: Individuals with high student loan debt seeking to purchase their first home in New Jersey.
- Affected agencies: New Jersey Housing and Mortgage Finance Agency (administration and oversight); potential lenders involved in financing merged home loans.
- Real estate impact: Focus on foreclosed single-family homes in near move-in condition as the pool of eligible properties.

Notes
- The bill is currently in committee (Higher Education) with related prior-session bills listed as references.
- The program would operate in alignment with federal loan and housing finance regulations.

Related Information
- Related bills: A-7489, A-4938, A-678, A-1302, A-5499 (prior sessions)
- Legislative actions listed include referrals to Social Services in January 2025, in addition to the Assembly Higher Education referral.

This summary highlights the bill’s core aims, mechanisms, and potential effects on borrowers and the housing market if enacted.

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

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