New Jersey Assembly Bill A1603

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires Higher Education Student Assistance Authority to issue vouchers in amount of monthly loan repayment amount for loan borrowers who have child enrolled in Grow NJ Kids-rated child care program.

Impact

The bill aims to support families by making child care more accessible and affordable, thereby easing the financial burden of student loans for parents. It specifies that only borrowers with an individual annual income of no more than $75,000 or a combined household income of no more than $150,000 will qualify, ensuring that the benefits are directed toward lower and middle-income families. Additionally, participation in the program can stimulate the enrollment in quality child care programs, as the vouchers are tied to participation in the Grow NJ Kids system which rates early childhood education facilities.

Summary

Assembly Bill A1603 establishes the Grow NJ Kids Student Loan Voucher Program, which is designed to assist eligible borrowers with their student loan repayments. The program will be administered by the Higher Education Student Assistance Authority and aims to provide financial relief to those who are parents of children enrolled in approved child care programs. Under the bill, eligible borrowers can receive vouchers that cover their monthly loan repayment amount if their child is enrolled in a Grow NJ Kids-rated child care center, preschool, or Head Start program.

Contention

There may be points of contention around the financial implications of the voucher program on the state's budget, as it requires the allocation of state funds to offset the loan principal amounts provided to eligible borrowers. Moreover, stakeholders may express concerns regarding the sustainability of funding for this program, particularly in light of varying enrollment rates and economic conditions that could impact the state's fiscal position. Ensuring effective outreach and enrollment among potential participants will also be critical to the program's success and its acceptance among constituents.