New Jersey‘s Teacher Loan Redemption Program Gains Traction in Addressing Teacher Shortages
New โjersey’sโฃ Teacher Loan Redemption Program, launched in 2021, is proving popular as โขthe state seeks to attract and retainโค educators in critical subject areas. โWhile applicationsโ for the current year are now closed, the program has seen a significant increase in โฃinterest following initial limitations.
The โprogram offers up to $20,000 in student loan debtโ relief over four years, with โa maximum โขof $5,000 repaid annually, to qualifying teachers. Loan โขredemption payments cover 25% of the principalโ and interest on eligible student โloan expenses. The program is administered by the state’s Higher Education Student Assistance Authority (HESAA) and was recently funded with a $5 million appropriation.
To be eligible, โapplicants must be โNew Jersey residents with a valid state teaching certification, employed in a qualifying school, and โteaching a high-need subject. Forโฃ the 2025-26 school year, those subjects include โEnglishโฃ as a Second Language, bilingual education, world languages, mathematics, science, special education, and specific areas within career โand technical education.
The program experienced a slow start in its first year (fiscal year 2023), with only two participants, due โto restrictions limiting eligibility to borrowers with NJCLASS loans. However, the state broadened the applicant pool to include other loan types in subsequent โฃyears, leading to a surge in applications โand a corresponding increase in the โคnumber of applicants who did not qualify.
Between โ2023 and 2025, 580 applicants were โdenied.โ The most common reasons for ineligibility in โfiscal years 2024 and 2025 โwere teaching in a non-qualifying school, teaching a subject not identifiedโฃ as high-need โby the state, or failing to submit โrequired documentation.
Applicants โmust have been hired on or after January 1, 2009, to teach โคin a high-need field and must have a clean student loan record,โ with no prior defaults. Eligible loans include federal, NJCLASS, and private loans used for tuition, and reasonable โeducation and living โexpenses related to obtaining a degree, as outlinedโ by HESAA.