N.J. Admin. Code § 9A:10-4.5

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

Section 9A:10-4.5 - Terms for loan redemption

(a) An applicant, who has met the eligibility requirements for participation in the program, shall enter into a written contract with the Authority. The contract shall specify the duration of the participant's approved employment service obligation, not to exceed five years, and the total amount of eligible student loan expenses to be redeemed by the State in return for service.

(b) For each year of full-time faculty employment at an eligible institution, loan redemption shall not exceed $ 10,000 of principal and interest of eligible student loan expenses. The total loan redemption amount for a Program participant shall not exceed $ 50,000. No amount of loan redemption shall be provided for service performed for less than a full year. Loan redemption will be applied first to outstanding State loans and then to outstanding Federal loans.

(c) For each year of part-time faculty employment at an eligible institution, loan redemption shall not exceed $ 5,000 of principal and interest of eligible student loan expenses for teaching three to 17 credits per year and shall not exceed $ 8,000 of principal and interest of eligible student loan expenses for teaching 18 to 23 credits per year.

(d) At the time an applicant is accepted as a program participant and has entered into a written contract with the Authority, the Authority will encumber up to $ 50,000 of program funds as necessary to provide for the redemption of the participant's eligible student loan expenses.

(e) In order to continue eligibility for loan redemption under the Program, a participant must submit certification, prior to the annual redemption of loan indebtedness, of his or her continuous employment as a full-time or part-time faculty member at an eligible institution to the Authority. A participant may change employment to another eligible institution, as long as he or she remains continuously employed as a full-time or part-time faculty member at an eligible institution.

N.J. Admin. Code § 9A:10-4.5

Amended by 56 N.J.R. 2292(b), effective 12/2/2024