New Jersey-2020-A4396-Introduced

An Act establishing a loan forgiveness program for certain frontline health care workers 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.

"COVID-related health care services" means any health care services that relate to the diagnosis, prevention, or treatment of the coronavirus disease 2019, including through telehealth services; the assessment or care of the health of a person related to an actual or suspected case of the coronavirus disease 2019, including through telehealth services; or patient care in a setting where there is a reasonable expectation of risk of exposure to the coronavirus disease 2019.

"Executive director" means the executive director of the Higher Education Student Assistance Authority.

"Frontline health care worker" means an individual who, in exchange for payment or as a volunteer, for any period during the public health emergency or State of emergency declared by the Governor in Executive Order 103 of 2020, is:

a. a physician, advanced practice nurse, physician assistant, medical resident, medical intern, medical fellow, nurse, home health care provider, mental health professional, or other health care professional who is licensed or otherwise authorized to practice pursuant to Title 45 of the Revised Statutes and who provides COVID-related health care services;

b. a student enrolled in an institution of higher education in a medical, nursing, or other relevant health care program of study and who provides COVID-related health care services;

c. a laboratory worker who conducts, evaluates, or analyzes coronavirus disease 2019 testing;

d. a medical researcher who conducts research related to the prevention, treatment, or cure of the coronavirus disease 2019;

e. an emergency medical technician or paramedic who responds to health emergencies or transports patients to hospitals or other medical facilities; or

f. a person who does not meet any of the requirements of subsections a. through e. of this section, but is a health care worker who is licensed, registered, or certified under federal or State law to provide health care services and has made significant contributions to the medical response to the coronavirus disease 2019 emergency.

"Private educational lender" means a financial institution that solicits, makes, or extends private student loans, or any other person engaged in the business of soliciting, making, or extending private student loans.

"Private student loan" means a loan, other than a State student loan, extended to a frontline health care worker by a private educational lender for the express purpose of financing graduate education expenses or undergraduate education expenses in a relevant health care program of study that leads to a degree or certificate necessary to provide COVID-related health care services.

"Program" means the Frontline Health Care Worker Loan Forgiveness Program established pursuant to section 2 of this act.

"Program participant" means a frontline health care worker who provides COVID-related health care services in the State and meets all other requirements of the program.

"State student loan" means a loan extended to a frontline health care worker under the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program for the express purpose of financing graduate education expenses or undergraduate education expenses in a relevant health care program of study that leads to a degree or certificate necessary to provide COVID-related health care services.

2. a. There is established within the Higher Education Student Assistance Authority a Frontline Health Care Worker Loan Forgiveness Program. The program shall provide for the forgiveness of State student loans and private student loans of frontline health care workers who provide COVID-related health care services in the State. The program shall remain open to eligible applicants for two years following the expiration of the public health emergency or State of emergency, whichever period of declared emergency is longer, declared by the Governor in Executive Order 103 of 2020.

b. Notwithstanding any provision of law to the contrary, the executive director of the authority shall cancel the outstanding balance of interest and principal due on the State student loans of a program participant.

c. Notwithstanding any provision of law to the contrary, the State Treasurer shall pay to the private educational lender an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of a program participant's private student loans, as calculated on the date of the repayment of the loans by the State Treasurer, in order to discharge the program participant from any remaining obligation to the private educational lender with respect to the private student loans.

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

a. be a resident of the State;

b. be a frontline health care worker licensed or otherwise authorized to provide COVID-related health care services in the State;

c. provide COVID-related health care services in the State;

d. be a borrower of a State student loan or a private student loan; and

e. satisfy any other requirements deemed necessary by the executive director and the State Treasurer.

4. The executive director of the Higher Education Student Assistance Authority and State Treasurer shall jointly develop one application for borrowers of State student loans and private student loans. An application shall be required to include:

a. proof of New Jersey residency;

b. proof of employment or service as a frontline health care worker in the State;

c. the total amount of applicable loans held by the applicant; and

d. any other information the executive director and State Treasurer deem necessary.

5. With each billing statement provided to a borrower of a State student loan during the Frontline Health Care Worker Loan Forgiveness Program, the executive director shall include a notice informing the borrower of the availability of the Frontline Health Care Worker Loan Forgiveness Program. The executive director shall also require each private educational lender and servicer of a private student loan to include such notice.

6. a. Nothing in this act shall be construed to authorize any refunding of any State student loan or private student loan repayment made before the date a program participant's loans are forgiven or paid under the program.

b. The amount of a program participant's State student loans and private student loans forgiven under this act shall not be included in the gross income of the program participant for purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.

7. The executive director of the Higher Education Student Assistance Authority and the State Treasurer, shall jointly 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.

8. This act shall take effect immediately.

STATEMENT

This bill establishes the Frontline Health Care Worker Loan Forgiveness Program. The program will provide for the forgiveness of New Jersey College Loans to Assist State Students (NJCLASS) loans and private student loans of frontline health care workers who provide COVID-related health care services in the State. In order for a loan to be eligible for forgiveness under the program, the loans must have been extended for the express purpose of financing graduate education expenses or undergraduate education expenses in a relevant health care program of study that leads to a degree or certificate necessary to provide COVID-related health care services.

Under the bill, the program will remain open to eligible applicants for two years following the expiration of the public health emergency or State of emergency, whichever period of declared emergency is longer, declared by the Governor in Executive Order 103 of 2020. Under the bill, the executive director of the Higher Education Student Assistance Authority (HESAA) will cancel the outstanding balance of interest and principal due on the NJCLASS loans of a program participant. The State Treasurer will pay an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of a program participant's private student loans.

To be eligible to participate in this program, an applicant must (1) be a resident of New Jersey, (2) be a frontline health care worker licensed or otherwise authorized to provide COVID-related health care services in the State, (3) have provided COVID-related health care services in the State, and (4) be a borrower of a State student loan or a private student loan.

Under the bill, the executive director and a private educational lender are required to include, and require each student loan servicer of a private student loan to include, notice of the availability of the program with each billing statement provided to a borrower of a NJCLASS loan or private student loan.

Under the bill, the amount of a program participant's NJCLASS loans and private student loans forgiven under the program will not be included in the gross income of a program participant for purposes of the "New Jersey Gross Income Tax Act."