STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman LINDA S. CARTER
District 22 (Somerset and Union)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblyman Bhalla
SYNOPSIS
Expands approved sites under Behavioral Healthcare Provider Loan Redemption Program.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the Behavioral Healthcare Provider Loan Redemption Program and amending P.L.2022, c.34.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2022, c.34 (C.18A:71C-87) is amended to read as follows:
1. As used in this act:
"Approved site" means a community provider of behavioral and mental health services identified by the Higher Education Student Assistance Authority, in consultation with the Department of Health, for inclusion in the program. Approved sites may include, but need not be limited to, providers operated by a nonprofit or for-profit entity, institution of higher education, school district, county, the Department of Children and Families, the Department of Human Services, and the Department of Health.
"Authority" means the Higher Education Student Assistance Authority.
"Eligible behavioral healthcare providers" means psychiatrists, psychologists, licensed clinical social workers, psychiatric nurse mental health clinical specialists; board certified behavior analysts; licensed clinical alcohol and drug counselors; and any other professionals identified by the executive director of the authority for inclusion in the program.
"Eligible qualifying loan expenses" means the cumulative outstanding balance of student loans covering the cost of attendance at an undergraduate or graduate institution of higher education at the time an applicant is selected for the program. Interest paid or due on qualifying loans that an applicant has taken out for use in paying the costs of undergraduate or graduate education shall be considered eligible for reimbursement under the program. The authority may establish a limit on the total amount of qualifying loans which may be redeemed for participants under the program, provided that the total redemption of qualifying loans does not exceed $150,000, or the maximum amount authorized by the federal government, whichever is greater, either in State funds or the sum of federal, State, and other non-federal matching funds, pursuant to section 338I of the Public Health Service Act (42 U.S.C. s.254q-1), whichever is applicable.
"Executive director" means the executive director of the Higher Education Student Assistance Authority.
"Program" means the Behavioral Healthcare Provider Loan Redemption Program established pursuant to this act.
"Program participant" means a behavioral healthcare provider who contracts with the authority to engage in the clinical practice of mental or behavioral healthcare at an approved site in exchange for the redemption of eligible qualifying loan expenses provided under the program.
"Qualifying loan" means a government or commercial loan for the actual costs paid for tuition and reasonable education and living expenses relating to the obtaining of a degree for use in a mental or behavioral healthcare profession.
"Total and permanent disability" means a physical or mental disability that is expected to continue indefinitely or result in death and renders a participant in the program unable to perform that person's service obligation, as determined by the executive director or his designee.
(cf: P.L.2022, c.34, s.1)
2. This act shall take effect immediately and shall first apply to applications submitted for the Behavioral Healthcare Provider Loan Redemption Program on or after the date of enactment.
STATEMENT
This bill expands the approved sites under the Behavioral Healthcare Provider Loan Redemption Program. Under the program, behavioral healthcare providers who enter into a contract to work at an approved site are eligible to apply for student loan redemption.
The bill revises current law to permit a for-profit community provider of behavioral and mental health services to be considered an approved site under the program. Under current law an approved site includes a community provider of behavioral and mental health services operated by nonprofit organizations, educational institutions, and governmental entities, as identified by the Higher Education Student Assistance Authority, in consultation with the Department of Health.