New Jersey‘s Teacher Loan Redemption Program Gains Traction in Addressing Teacher Shortages
New jersey’s Teacher Loan Redemption Program, launched in 2021, is proving popular as the state seeks to attract and retain educators in critical subject areas. While applications for the current year are now closed, the program has seen a significant increase in interest following initial limitations.
The program offers up to $20,000 in student loan debt relief over four years, with a maximum of $5,000 repaid annually, to qualifying teachers. Loan redemption payments cover 25% of the principal and interest on eligible student loan 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, applicants must be New Jersey residents with a valid state teaching certification, employed in a qualifying school, and teaching a high-need subject. For the 2025-26 school year, those subjects include English as a Second Language, bilingual education, world languages, mathematics, science, special education, and specific areas within career and technical education.
The program experienced a slow start in its first year (fiscal year 2023), with only two participants, due to restrictions limiting eligibility to borrowers with NJCLASS loans. However, the state broadened the applicant pool to include other loan types in subsequent years, leading to a surge in applications and a corresponding increase in the number of applicants who did not qualify.
Between 2023 and 2025, 580 applicants were denied. The most common reasons for ineligibility in fiscal years 2024 and 2025 were teaching in a non-qualifying school, teaching a subject not identified as high-need by the state, or failing to submit required documentation.
Applicants must have been hired on or after January 1, 2009, to teach in a high-need field and must have a clean student loan record, with no prior defaults. Eligible loans include federal, NJCLASS, and private loans used for tuition, and reasonable education and living expenses related to obtaining a degree, as outlined by HESAA.