18A:71C-75 Loan redemption program for public school STEM teachers.

2. a. There is established in the Higher Education Student Assistance Authority a loan redemption program for public school teachers who teach science, technology, engineering or mathematics (STEM) classes.

The program shall provide for the redemption of the eligible student loan expenses of a program participant following the fourth consecutive year of full-time employment as a teacher of science, technology, engineering, or mathematics in a public school. The annual amount of State funds appropriated to the loan redemption program shall not exceed $500,000. The authority shall notify the Legislature when the funds have been fully expended or committed.

The authority shall give priority under the program to teachers of science, technology, engineering, or mathematics who are employed at a low performing public school.

b. A program participant may redeem eligible student loan expenses upon execution of a contract between the program participant and the authority. The contract shall specify the total amount of debt to be redeemed by the State in return for service pursuant to subsection c. of this section. 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 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.

c. The redemption of loans under the loan redemption program shall equal 25 percent of the participant's eligible student loan expenses, up to $5,000, in return for each consecutive year of full-time employment as a teacher of science, technology, engineering, or mathematics in a public school. The total amount of eligible student loan expenses which may be redeemed under the program by a program participant, for four full school years of service, shall not exceed $20,000. A program participant shall submit to the authority proof of eligible employment in a public school prior to redemption of loan indebtedness. A program participant is not required to teach at the same public school for four consecutive years.

d. A program participant who has entered into a redemption contract with the authority may nullify the contract by submitting written notification to the authority and assuming full responsibility for repayment of principal and interest on the full amount of his loans or that portion of the loans which has not been redeemed by the State in return for fulfillment of the contract.

e. In the case of the program participant's death or total and permanent disability, the authority shall nullify the service obligation of the program participant. The nullification shall terminate the authority's obligations under the loan redemption contract. If continued enforcement of the contract results in extreme hardship, the authority may nullify or suspend the service obligation of the program participant.

f. The authority shall advertise the availability of the program and engage in outreach activities with potential participants.

L.2019, c.401, s.2.