Bill Text: NJ A2148 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes loan redemption program for licensed mental health professionals.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Higher Education Committee [A2148 Detail]
Download: New_Jersey-2024-A2148-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
Establishes loan redemption program for licensed mental health professionals.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing a loan redemption program for licensed mental health professionals and supplementing chapter 71C of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3.
"Eligible student loan expenses" means the cumulative outstanding balance of the principal and interest due on student loans used to cover the cost of attendance while enrolled in an undergraduate or graduate degree program at an institution of higher education.
"Executive director" means the executive director of the authority.
"Licensed mental health professional" means a person who provides mental health counseling services and is licensed or otherwise authorized pursuant to Title 45 of the Revised Statutes to practice a health care profession that is regulated by the State Board of Medical Examiners, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the State Board of Marriage and Family Therapy Examiners, the Alcohol and Drug Counselor Committee, the Professional Counselor Examiners Committee, or the Certified Psychoanalysts Advisory Committee.
"Program" means the Licensed Mental Health Professional Loan Redemption Program established pursuant to section 2 of this act.
"Program participant" means a licensed mental health professional who meets the criteria set forth in subsection b. of section 2 of this act, and who has entered into a written contract with the authority for participation in the program.
2. a. There is established in the Higher Education Student Assistance Authority a Licensed Mental Health Professional Loan Redemption Program for licensed mental health professionals who provide mental health counseling services within the State. The program shall provide loan redemption payments, not to exceed $1,000 per payment, to program participants for each year of mental health counseling service, except that a program participant may not participate in the program for longer than four years. A program participant shall use each loan redemption payment to defray the costs of eligible student loan expenses.
b. To qualify for participation in the program, an applicant shall:
(1) be a resident of the State;
(2) be a licensed mental health professional employed in a full-time position providing mental health counseling services within the State;
(3) have an outstanding balance of eligible student loan expenses and not be in default on any eligible student loan expenses; and
(4) satisfy any additional criteria that the authority may deem necessary.
c. The executive director shall select the program participants from among those applicants who meet the criteria set forth in subsection b. of this section, subject to available funds.
3. a. A person who has been selected by the executive director pursuant to section 2 of this act shall enter into a written contract with the authority. The contract shall, at a minimum, specify the dates that the program participant shall be employed in a full-time position providing mental health counseling services within the State.
b. Before the authority provides a loan redemption payment to a program participant during any year of program participation, the program participant shall submit to the authority:
(1) proof of residency in the State during the previous 12-month period;
(2) such certification as the authority deems appropriate to demonstrate that the program participant was employed in a full-time position providing mental health counseling services within the State during the previous 12-month period;
(3) certification of the outstanding balance of eligible student loan expenses; and
(4) any other information that the authority may deem necessary.
c. Upon certification that a program participant has met all criteria set forth in this section, the authority shall provide a loan redemption payment, in an amount not to exceed $1,000, to the program participant to defray the costs of eligible student loan expenses. If during any year of program participation, the eligible student loan expenses of a program participant do not exceed $1,000, then the authority shall provide a loan redemption payment equal to the outstanding balance of the eligible student loan expenses, and the program participant shall cease to participate in the program.
d. A program participant who has entered into a written contract with the authority may nullify the agreement by notifying the authority, in writing, and reassuming full responsibility for the outstanding balance of eligible student loan expenses.
e. A person who knowingly or willfully furnishes false or misleading information for the purpose of receiving a loan redemption payment under the program is guilty of a crime of the fourth degree.
4. The authority shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the purposes of this act.
5. This act shall take effect immediately.
STATEMENT
This bill establishes a student loan redemption program for licensed mental health professionals who provide mental health counseling services within the State.
Specifically, the bill establishes the Licensed Mental Health Professional Loan Redemption Program ("program") within the Higher Education Student Assistance Authority ("authority"). The program would provide loan redemption payments to licensed mental health professionals who are employed in a full-time position providing mental health counseling services within the State ("qualifying occupation").
Under the bill, a program participant may receive a loan redemption payment, in an amount not to exceed $1,000, for each full year of mental health counseling services. However, a person may not participate in the program for longer than four years. Any loan redemption payment provided through the program is required to support the outstanding balance of the participant's eligible student loan expenses.
To qualify for participation in the program, an applicant is required to: (1) be a resident of the State; (2) be a licensed mental health professional who is employed in a qualifying occupation; (3) have an outstanding balance of eligible student loan expenses and not be in default on any eligible student loan expenses; and (4) satisfy any additional criteria that the authority may deem necessary.
When a person is selected for participation in the program, the person would be required to enter into a written contract with the authority. At a minimum, this contract would specify the dates that the program participant is required to be employed in a qualifying occupation. The bill permits a program participant to withdraw from the program by providing written notice to the authority.
Under the bill, the authority
may not provide a loan redemption payment without first receiving the following
documentation from the program participant: (1) proof of residency in the State
during the previous 12-month period; (2) such certification as the authority
deems appropriate to demonstrate that the program participant was employed in a
qualifying occupation during the previous 12-month period; (3) certification of
the outstanding balance of eligible student loan expenses; and (4) any other
information that the authority may deem necessary.
Any person who knowingly or willfully furnishes false or misleading information for the purpose of receiving a loan redemption payment under the program is guilty of a crime of the fourth degree, which is punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both.
