Bills to redeem teacher, physician loans before Senate committee

TRENTON – Bills that would offer financial incentives for teachers and doctors to work in the state will be heard in the Senate Education Committee next week.

S162, which has been before the Legislature before, would set up a Physician Loan Redemption Program for physicians in particular practices who agree to work in the state for 10 years.

The bill would target specialties where it is feared a physician shortage might occur.

According to the schedule presented in the bill, 5 percent of principal and interest could be reimbursed in each of the first two years of the 10-year commitment.

During years three through nine, that would increase to 10 percent, and then in year 10 it would rise to 20 percent of principal and interest.

Another bill, S1487, would establish a somewhat similar program for teachers.  It would allow them to redeem a portion of their NJCLASS loan in exchange for teaching math or science in a public school. This bill also has been introduced in earlier sessions.

For teachers in certain districts, such as the former Abbott districts, the program would offer redemption of 45 percent of principal and interest on the loan after completing three years of teaching. For each year after that, redemption would be equal to 15 percent of principal and interest.

For teachers in other districts, redemption would be for 30 percent for completion of three years and 10 percent for each additional year.

Bills to redeem teacher, physician loans before Senate committee