Sarlo-Lagana STEM Loan Forgiveness Bill Approved

TRENTON– Legislation authored by Senator Paul Sarlo (Bergen/Passaic) and Senator Joseph Lagana (Bergen/Passaic) to promote New Jersey’s innovation economy was approved by the Senate today. The bill, S-2723, would create the STEM Loan Forgiveness Program to encourage individuals in STEM fields to make a long-term commitment to building and maintaining a career in New Jersey.

The vote was 36-1.

“Science and technology are at the vanguard of a growing economy, providing the research and development that will help sustain job growth and continued economic growth,” said Senator Sarlo, the chairman of the Senate Budget and Appropriations Committee. “We need to support STEM education so that New Jersey’s students are offered the opportunities to acquire the skills and knowledge to compete in the modern economy and we need to do what we can to see that they are not burdened with unmanageable debt.”

According to program requirements, after an employee has worked four years in a designated high-growth STEM occupation in New Jersey, the New Jersey Higher Education Student Assistance Authority (HESAA) will redeem eligible qualifying student loan expenses for up to four years. HESAA would provide eligible employees with $1,000 annually to defray outstanding loans. Employers would be required to at least match this award – or otherwise partner with the State – to provide a total benefit worth at least $8,000 over the four-year period.

“A loan redemption program for graduates who are working in high-growth STEM jobs will be an incentive for them to stay here in New Jersey – which is where we want them to be,” said Senator Lagana. “We want our high-tech graduates to find jobs in New Jersey and we want them to remain here where they can contribute to advancements in science and technology and to the state’s economic growth.”

Eligibility requirements for the STEM Loan Forgiveness Program include:

• Being a resident of the State of New Jersey and maintaining residency during participation in the program;
• Having a degree from an approved STEM degree program at a New Jersey institution of higher education;
• Working full-time in an approved high-growth STEM occupation at a New Jersey employer for a minimum of four years before applying to the program;
• After applying for the program, working for an additional one to four years of employment in an approved high-growth STEM occupation at a New Jersey employer;
• Receiving annual certification from a current employer to attest the employee is working in an approved high-growth STEM occupation; and
• Having an outstanding balance with a State or Federal student loan program and not being in default on any student loan.

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