On December 14, 2018, Governor Phil Murphy signed into law the New Jersey STEM Loan Redemption Program. This program
offers an incentive for professionals to build and maintain their career in certain high-growth occupations in science,
technology, engineering, and mathematics (STEM) fields in New Jersey. This incentive will support innovative New Jersey
businesses in attracting and retaining the talent they need for success and growth.
The program offers student loan redemption in exchange for an employee’s commitment to full-time employment in a designated high-growth STEM occupation at an employer in New Jersey. An applicant must have already worked for at least four years in a designated high-growth STEM occupation in New Jersey beginning on or after December 14, 2018 prior to applying. If the employee is then approved to participate in the program, the participant will be eligible to have up to $2,000 of eligible student loan debt redeemed for each year of continued employment at an eligible employer, for up to four years, up to a maximum of $8,000. Of the annual $2,000 student loan redemption payment, $1,000 will be funded by the New Jersey Higher Education Student Assistance Authority (HESAA) through a State appropriation and $1,000 must be funded by a match from the participant’s employer.
Eligibility
To qualify for loan repayment assistance, an applicant must meet all of the following requirements:
- Be a resident of New Jersey and maintain domicile in the State during participation in the program;
- Have earned a degree from an approved STEM degree program from an institution of higher education located in
New
Jersey.
- Have graduated on or after the effective date of December 14, 2018;
- Have worked full-time in an approved high-growth STEM occupation at a New Jersey employer for a minimum of
four
years before applying for the program.
- After applying for the program, work for an additional one to four years of employment in an approved
high-growth
STEM occupation at a New Jersey employer;
- Annually receive certification from the employer, attesting that the employee is working in an approved
high-growth
STEM occupation,
- Annually receive approval from his or her current employer for an employer matching payment;
- Have an outstanding balance with a State or Federal student loan program and not be in default on any student
loan.
The list of eligible occupations for the STEM Loan Redemption Program will be reviewed and updated every two years based on data from the United States Bureau of Labor Statistics and the State’s strategic economic development goals. The next update is scheduled for January 2025. If an occupation is removed from the list at that time, STEM Loan Redemption Program participants who are already enrolled in the program will remain eligible as long as all other criteria continue to be met.
New Jersey residents who completed four (4) years of qualifying employment, which began on or after December 14, 2018, may submit an application for this program. Applicants found to be eligible for the program will agree to work for at least one additional year in the eligible occupation, for up to four years. Student loan redemption payments will be made to the participant’s student loan servicer after the employer certifies the employee’s completion of each year of agreed-upon additional employment.
Applications are reviewed on a rolling basis and approval is subject to the availability of funds.
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