N.J. Admin. Code § 9A:10-8.5

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

Section 9A:10-8.5 - Terms for loan redemption

(a) An applicant who has been selected 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 four school years, and the total amount of NJCLASS loans to be redeemed by the Authority in return for service.

(b) Loan redemption under the Program shall amount to 25 percent of principal and interest of a Program participant's outstanding NJCLASS loan amount, not to exceed $ 5,000, in return for each consecutive full school year of approved employment service successfully completed by the Program participant. The total loan redemption amount for a Program participant shall not exceed $ 20,000.

1. 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 $ 20,000 of Program funds, as necessary, to provide for the redemption of the participant's outstanding NJCLASS loans.

(c) In order for a participant to qualify for an annual redemption payment, the Program participant shall submit to the Authority certification, in the form approved by the Authority, of full-time employment in a high-need field at a low-performing school for the school year.

(d) A Program participant who has entered into a contract with the Authority shall remain eligible for loan redemption under the contract in the event that:

1. The public school in which the teacher is employed loses its designation as a low-performing school or the teacher is transferred to a school in the district that is not a low-performing school; or

2. The high-need field in which the Program participant is teaching pursuant to the Program service obligation subsequently loses its designation as a high-need field, and the Program participant continues to teach in the same field, in accordance with the Program participant's contractual agreement with the Authority.

(e) No amount of loan redemption shall be provided for service performed for less than a full school year.

N.J. Admin. Code § 9A:10-8.5

Adopted by 54 N.J.R. 2201(b), effective 12/5/2022