New Jersey Assembly Bill A2158

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Report Pass: 6/3/24
• Engrossed: 9/26/24
• Refer: 9/30/24

Caption

Requires institutions of higher education and government employers to provide certain students and employees with information about Public Service Loan Forgiveness program.

Impact

The bill mandates that higher education institutions provide qualifying students with information regarding the PSLF program at key points in their academic journey. Specifically, this communication is required during the second-to-last semester before graduation and again during the semester of graduation. The intention behind this provision is to ensure that students are well-informed about potential loan forgiveness options available to them before they enter the workforce and start repaying their loans.

Summary

Bill A2158 introduces a requirement for institutions of higher education and government employers in New Jersey to provide information about the Public Service Loan Forgiveness (PSLF) program to students and employees respectively. The PSLF program is intended to assist individuals who have dedicated ten years to working full-time in the public service sector by offering them student loan forgiveness. This initiative aims to enhance awareness and accessibility of the PSLF benefits among eligible individuals who may qualify for assistance with their outstanding federal student loan debts.

Contention

For government employers classified under the PSLF program, the bill requires the dissemination of information about the program to new employees during their initial benefits briefing and at least once each calendar year thereafter. Concerns may arise regarding the administrative burden this places on employers, as they will need to effectively manage the distribution of this information while ensuring compliance with the PSLF requirements. Moreover, the effectiveness of such informational outreach in significantly increasing participation in the PSLF program may be debated among stakeholders.