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Bill

A 2801

Renames, extends eligibility, and makes various other changes to Primary Care Practitioner Loan Redemption Program.

2024-2025 Regular Session Introduced by Herb Conaway and 19 co-sponsors

Renames and expands the loan-rebate program to cover more health professionals (including psychiatrists), raises the max redemption to 200,000, and broadens underserved-area design

Referred to Senate Budget and Appropriations Committee
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Bill Summary · A 2801

Summary — A2801 (Greenwald et al.)

Status: Introduced Jan 9, 2024; passed Assembly Oct 28, 2024 (66-10-1); received in Senate Dec 5, 2024; reported by Senate Higher Education Committee with amendments Feb 10, 2025; referred to Senate Budget & Appropriations. Companion: S780.

Purpose

Renames and broadens the existing Primary Care Practitioner Loan Redemption Program administered by the Higher Education Student Assistance Authority (HESAA). The bill aims to expand eligibility to additional health professions (including psychiatrists), increase maximum loan redemption amounts, clarify site approval rules, and strengthen reporting and prioritization to address statewide health workforce shortages.

Key provisions

  • Renames the program to the “Health Care Professional Loan Redemption Program.”
  • Expands eligible participants to include psychiatrists and other health professionals the Commissioner of Health designates. The Commissioner may add fields experiencing critical statewide labor shortages after consultation with the Commissioner of Labor and Workforce Development and the Director of Consumer Affairs.
  • Increases the maximum total eligible loan redemption amount for participants employed at an approved site from $120,000 to $200,000 (or the greater amount authorized by federal law).
  • Maintains the multi-year redemption schedule: 18% of the total in year 1, 26% in year 2, 28% in year 3, 28% in year 4 (spread over four years).
  • Expands the definition of “State designated medically underserved area” to include municipalities with >50% of households at or below 185% of the federal poverty level and municipalities with HRSA medically underserved area/population designations.
  • Permits participants to identify a site for approval and establishes criteria for automatic designation of certain sites as “approved.”
  • Prohibits HESAA from imposing additional eligibility requirements on approved sites beyond those set in the law.
  • Requires HESAA to submit an annual report to the Governor and Legislature by August 1 with program participation, redemption amounts, and outcomes.
  • Amends or repeals prior statutory directions concerning set-asides for the Nursing Faculty Loan Redemption Program (committee amendments altered how or whether 25% of funds are reserved and allow excess nursing-faculty funds to be reallocated).

Eligibility, prioritization, and administration

  • Applicants must be New Jersey residents and agree to practice at an approved site.
  • The bill includes new prioritization criteria when funds/sites are insufficient (committee amendments clarify priority for applicants already employed by or with offers from approved sites).
  • The Commissioner of Health, in consultation with other agencies, will set designations and rankings of underserved areas based on health and economic indicators.

Fiscal impact

  • Office of Legislative Services estimates increased State spending up to $1.9 million over the first four years due to expanded eligibility and the higher maximum redemption amount.
  • Estimated annual incremental cost increases: $144,000 (Year 1), $352,000 (Year 2), $576,000 (Year 3), $800,000 (Year 4+).
  • By Year 4, total annual program expenditures (including existing costs) would be ~ $2.0 million.
  • FY2024 and FY2025 appropriations included language/funding consistent with increasing the maximum redemption to $200,000.

Who is affected

  • Prospective and current program participants (primary care practitioners, psychiatrists, and other designated health professionals).
  • Approved sites serving medically underserved areas and Health Professional Shortage Areas.
  • HESAA, NJ Department of Health, Department of Human Services, Department of Labor & Workforce Development, and Division of Consumer Affairs (for consultations and data transmission).

Next steps / procedural

Reported out of Senate Higher Education Committee (2/10/2025) with amendments; pending review by Senate Budget & Appropriations Committee and further Senate floor action.

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

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