Nursing Faculty Loan Redemption Program Report | | New Jersey State Nurses Association

Nursing Faculty Loan Redemption Program Report

 In Nurses Weekly

The Nursing Faculty Loan Redemption Program was enacted pursuant to N.J.S.A. 18A:71C-50 et seq. on January 16, 2010 with an effective date of July 1, 2010. This program is intended to address the current and projected critical shortage of nurse faculty in the State by providing an incentive to enter graduate nursing education programs. Participants in the program receive redemption of eligible student loan expenses in exchange for full-time faculty employment at a school of nursing in the State for a five-year period following completion of the approved graduate degree program. The participant must be a resident of the State of New Jersey.

Participants are required to enter into a written contract with the New Jersey Higher Education Student Assistance Authority (HESAA) specifying the duration of required service and the total amount of loans to be redeemed in return for service. Eligible candidates must have been employed at the qualified Nursing school on or after the date that the enabling legislation was enacted, January 16, 2010. The first-year payment is up to $5,000, the second year up to $7,000, the third year up to $10,000, the fourth year up to $13,000, and the fifth and final year up to $15,000. Each annual payment cannot exceed the total outstanding balance on eligible loans. The total amount of loans eligible for redemption under this program is $50,000.

This amount is limited to the lesser of the program maximum ($50,000) or the total outstanding balance of the eligible loans incurred for the degree that qualified the participant for the program.

HESAA receives the applications, determines eligibility, issues service commitment agreements, and then grants loan redemption payments subject to the availability of appropriated funds.

Furthermore, N.J.S.A. 18A:71C-56 provides:

The authority shall annually submit to the Governor, and pursuant to section 2 of P.L.1991, c.164 (C.52:14- 19.1), the chairman of the Senate Budget and Appropriations Committee, the chairman of the Assembly Appropriations Committee, the chairwomen of the Senate and Assembly Education Committees, and the chairmen of the Senate and Assembly Health Committees, a report on the program. The report shall be submitted no later than August 1 of each year and shall include, but not be limited to, the following information for the prior fiscal year:

  1. The total number of participants receiving loan redemption under the program;
  2. The total number of participants who withdrew from the program or failed to complete the program’s employment requirement; and
  3. The effect of the program on filling vacant nursing faculty positions in the State and eliminating the need to turn away qualified nursing school applicants.

Accordingly, please find the pertinent data below:

  1. As of June 30, 2021, the total number of new participants receiving loan redemption under the program is zero (0) participants who enrolled in FY 2021, for a cumulative total of four (4) active participants.
  2. Zero (0) new applications were received in FY 2021.
  3. One (1) participant has completed their service contract in FY 2021.
  4. Zero (0) participants have been exited / removed from the program due to non-compliance (no longer employed) in FY 2020.
  5. One (1) payment of $5,000 was disbursed in FY 2013.
  6. Seven payments (7) of $5,000 each and one (1) payment of $7,000 for a total of $42,000 were paid in FY 2014.
  7. Two (2) payments of $5,000 each, along with an additional seven (7) payments of $7,000 each, were disbursed for a total of $59,000 in FY 2015.
  8. Two (2) payments of $7,000 each, six (6) payments of $10,000 each, and one (1) payment of $3,000 for a total of $77,000 were disbursed in FY 2016.
  9. One (1) payment of $5,500 (to redeem-in-full), three (3) payments of $10,000 each (two (2) of which were redeemed-in-full), one (1) payment of $6,100 (to redeem-in-full), and three (3) payments of $13,000 each for a total of $80,600 were disbursed in FY 2017.
  10. One (1) payment of $5,000, one (1) payment of $9,303 (to redeem-in-full), one (1) payment of $15,000 (to redeem-in-full), and one (1) payment of $13,000 (to redeem-in-full) were disbursed for a total of $42,303 in FY 2018.
  11. Two (2) payments of $5,000 each, one (1) payment of $15,000 (to redeem-in-full) for a total of $25,000 in FY 2019.
  12. One (1) payment of $5,000, two (2) payments of $7,000 each, and one (1) payment of $13,000 for a total of $32,000 were disbursed in FY 2020.
  13. One (1) payment of $5,000, one (1) payment of $7,000, two (2) payments of $10,000 each, and one (1) payment of $15,000 (to redeem-in-full), for a total of $47,000 were disbursed in FY 2021.
  14. Using funds encumbered from prior fiscal years, we are currently scheduled to make one (1) payment of $2,801 (to redeem-in-full), one (1) payment of $10,000, and two (2) payments of $13,000 each for a total of $38,801 in FY 2022.
  15. Using funds encumbered from prior fiscal years, we are currently scheduled to make one (1) payment of $5,000 (to redeem-in-full), two (2) payments of $15,000 each (to redeem-in-full) for a total of $35,000 in FY 2023. This will complete payments for this program in FY 2023, provided no additional participants are enrolled.
  16. A total of $409,903 has been paid out on behalf of our sixteen (16) overall participants (including removed and new participants) from FY 2013 through FY 2021.
  17. While it may not be possible for HESAA to determine the effect, if any, on filling vacant nursing faculty positions in the State, HESAA has taken steps to notify those institutions in New Jersey with nursing programs of the availability of these funds and the features of the program.

HESAA has dedicated a page on its website with all pertinent program information.

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