New Jersey-2022-A1824-Introduced

An Act concerning student loan repayment vouchers for certain borrowers 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:

"Approved program" means a licensed child care center, a school- or center-based preschool program, a Head Start program, or a registered family child care provider which has achieved a Grow NJ Kids rating of at least three.

"Authority" means the Higher Education Student Assistance Authority" established pursuant to N.J.S.18A:71A-3.

"Grow NJ Kids" means New Jersey's quality rating improvement system designed to raise the quality of child care and early learning programs.

"Program" means the Grow NJ Kids Student Loan Voucher Program established pursuant to section 2 of this act.

"Program participant" means a State or federal student aid loan program borrower who has a child enrolled in an approved program and who has applied and been accepted by the authority for participation in the Grow NJ Kids Student Loan Voucher Program.

2. There is established a Grow NJ Kids Student Loan Voucher Program within the Higher Education Student Assistance Authority. Under the program, the authority shall issue a voucher to an eligible borrower in the amount of the principal monthly loan repayment amount for an eligible borrower who has a child enrolled in an approved program. The State shall appropriate such amounts as may be necessary to offset the loan principal amounts provided through the vouchers authorized under the program.

3. To be eligible to participate in the program, an applicant shall:

a. be a resident of the State;

b. provide evidence of his child's enrollment in an approved program;

c. submit an application to participate in the program to the authority in a time and manner as determined by the authority;

d. have an individual annual income of no greater than $75,000 or a combined household income of no greater than $150,000; and

e. satisfy any additional criteria the authority may establish.

4. a. A program participant shall enter into a contract with the authority. The contract shall specify the amount of the monthly voucher to be issued to a program participant.

b. A program participant who has entered into a contract with the authority may nullify the contract by notifying the authority in writing and assuming full responsibility for the total monthly loan repayment amount.

5. A program participant shall immediately notify the authority if:

a. there is a change in the tuition amount charged by the approved program;

b. the child is no longer enrolled in the approved program; or

c. the child transfers from the approved program to another approved program, or to another child care program that does not have a Grow NJ Kids rating of at least three.

6. The authority shall provide:

a. each licensed child care center, school- or center-based preschool program, Head Start program, or registered family child care provider with information on the Grow NJ Kids Student Loan Voucher Program ; and

b. information on the Grow NJ Kids Student Loan Voucher Program to the general public through the authority's website and through other relevant outreach to loan borrowers as determined by the authority.

7. An approved program shall publicize the Grow NJ Kids Student Loan VoucherProgram within their facility, on their websites, and through any other relevant communications to individuals, as deemed appropriate by the approved program.

8. The authority shall adopt in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act.

9. This act shall take effect immediately.

STATEMENT

This bill establishes a Grow NJ Kids Student Loan Voucher Program within the Higher Education Student Assistance Authority. Grow NJ Kids is New Jersey's quality rating improvement system designed to raise the quality of child care and early learning programs. Under the bill, the authority will issue vouchers to eligible borrowers in the amount of the principal monthly loan repayment amount for an eligible borrower who has a child enrolled in an approved program. The bill defines an "approved program" as a licensed child care center, a school- or center-based preschool program, a Head Start program, or a registered family child care provider which has achieved a Grow NJ Kids rating of at least three. The bill provides that the State will appropriate such amounts as may be necessary to offset the loan principal amounts provided through the vouchers authorized under the program.

In order to be eligible to participate in the program, an applicant must:

� be a resident of the State;

� provide evidence of his child's enrollment in an approved program;

� submit an application to participate in the program to the authority in a time and manner as determined by the authority;

� have an individual annual income of no greater than $75,000 or a combined household income of no greater than $150,000; and

� satisfy any additional criteria the authority may establish.

Under the bill, the authority will provide:

� each licensed child care center, school- or center-based preschool program, Head Start program, or registered family child care provider with information on the Grow NJ Kids Student Loan Voucher Program; and

� information on the Grow NJ Kids Student Loan Voucher Program to the general public through the authority's website and through other relevant outreach to loan borrowers as determined by the authority.

The bill requires an approved program to publicize the Grow NJ Kids Student Loan Voucher Program within their facility, on their websites, and through any other relevant communications to individuals, as deemed appropriate by the approved program.