N.J. Admin. Code § 9A:10-2.8

Current through Register Vol. 56, No. 24, December 18, 2024

Section 9A:10-2.8 - Termination or suspension of the participant's employment service obligation and cancellation of the loan redemption contract by the Authority

(a) The Authority shall terminate the participant's employment service obligation and cancel the loan redemption contract if it determines:

1. On the basis of a sworn affidavit of a qualified physician that the participant is totally and permanently disabled;

2. On the basis of a death certificate, or other evidence of death that is conclusive under State law, that the participant has died;

3. On the basis of substantiating documentation as may be deemed necessary by the Authority upon specific case review that continued enforcement of the employment service obligation may result in extreme hardship for the participant;

4. On the basis of substantiating documentation, as defined in (a)3 above, that the participant has been convicted of a felony and/or a high misdemeanor, as defined in N.J.S.A. 2C:1-4.d, or has committed an act of gross negligence in the performance of his or her employment service obligation; or

5. On the basis of substantiating documentation, as defined in (a)3 above, that the participant's license to practice in his or her chosen field has been suspended or revoked.

(b) The Authority may suspend the participant's employment service obligation and the loan redemption contract if it determines, on the basis of substantiating documentation as may be deemed necessary by the Authority upon specific case review, that continued enforcement of the employment service obligation may result in extreme hardship for the participant.

1. The Authority may suspend the employment service obligation and the loan redemption contract of the program participant for a period of up to two calendar years from the date the suspension commences. At the end of the first year of suspension, the participant must provide the Authority with substantiating documentation, as defined in (b) above, to renew the suspension for a second year.

2. The suspension, as stipulated in (b)1 above, may be extended beyond two years for exceptional circumstances at the discretion of the Authority on the basis of substantiating documentation, as defined in (b) above.

(c) Suspension or cancellation of the participant's loan redemption contract by the Authority does not suspend or cancel the program participant's student loan obligations. The participant assumes full responsibility for repayment of the full amount of his or her loan(s) or that portion of the loan(s) that has not been redeemed by the State in return for partial fulfillment of the four-year contract.

(d) The Higher Education Student Assistance Authority shall have final decision making authority to terminate a program participant's employment service obligation and cancel the loan redemption contract.

N.J. Admin. Code § 9A:10-2.8