Social Services Loan Redemption Program
Due to limited funding and an overwhelming application response, we have fully exhausted all funding for the current fiscal year. Please check this website after July 1, 2010 to determine if additional funding will be available for next year. The application form will be posted to this page if additional funding becomes available.
The Social Services Student Loan Redemption Program provides incentives for college graduates to work in the social services field with public or non-profit social service agencies. The program is designed to address the current and projected shortage of social service direct care professionals in the State of New Jersey, and to ensure the provision of quality services to persons in need of services, including persons with mental illness, developmental and other disabilities.
The Social Services Student Loan Redemption program will provide loan redemption to recent college graduates who are hired as full-time direct care professionals at specific social service agencies. Eligible participants will receive $5000 per year of full-time qualified service for up to four years, $20,000.00 maximum. Payments are sent directly to the lender on behalf of the participant.
Eligibility:
- Be a resident of the State of New Jersey
- Must have been hired on or after July 14, 2005 AND within one year after graduation.
- Be employed as a direct care professional at a qualified facility within one year after completing a bachelor’s or graduate degree program
- Master's degree (or above) must be in a human service discipline such as social work, psychology or counseling, or a health related profession such as occupational, physical or speech therapy
- Not in default on a federal or state student loan
A “direct care professional” means a professional staff member at a qualified facility who provides one or more of the following services: counseling, physical, occupational, recreational or speech therapy, case management, vocational training, assistance with activities of daily living, medication management, budgeting assistance, addiction treatment services, nutrition; and other clinical services.
A “qualified facility” means one of the following:
- A facility operated by the Department of Human Services (DHS) that provides direct care services;
- A county psychiatric hospital;
- A facility operated by the Juvenile Justice Commission (JJC);
- A veteran’s memorial home operated by the Department of Military and Veterans Affairs; or
- A non-profit agency in the State that contracts with DHS or JJC to provide direct-care services to persons served by the Department or Commission.
Frequently Asked Questions
I am currently in college and haven’t graduated yet, but I’m already working full-time, can I apply now?
No, you have to begin your employment within one year after your graduation date.
How can I find out if my employer qualifies for this program?
The employer’s Human Resources office should be able to assist you. Please provide the HR officer with a copy of this webpage. They will be able to determine if they meet the definition of “Qualified Facility.”
What type of student loans can be redeemed?
Any federal or state (NJCLASS) student loans where you are the borrower and were incurred for the degree which qualifies you for this program are eligible, up to the program maximum of $20,000 total. Loans that someone else borrowed on your behalf (such as PLUS loans) are not eligible for redemption.
How do I apply?
If you meet the qualifications above, then download and print the application. Once you have completed your sections, have your employer complete their section; attach all required documentation and submit it to our office as a single package.
Do I have to reapply each year?
No. Once you have been accepted into the program, and have signed your service agreement, program funds are reserved for your entire service commitment.
What happens if the program runs out of money?
If you are already in the program (with a signed service agreement), then funds are reserved for your entire service term. All other eligible participants will be placed on a waitlist by date of application (complete applications only). As funds become available, participants may be offered service agreements.
Do I have to submit an official college transcript, or can I submit my personal copy or one from my online alumni access?
You do not have to submit an official copy as long as the copy you do submit shows the school name, degree awarded and the graduation date.
Can I send the application now and send the other documents later?
Please do not send your documents separately. Only complete application packages will be considered for funding.
What happens after I apply?
We will review your completed application, and if all eligibility criteria are met, we will send a letter and service agreement. You must read the agreement, sign, date and have it notarized. Return both pages of the agreement to our office. Keep a copy for your records. We’ll also notify applicants who do not meet the eligibility criteria.
How long is the service agreement/commitment?
Although you may withdraw from the program at any time, the maximum service commitment is four years.
I’ve returned the service agreement, when will my loans be redeemed?
Each year, prior to your employment anniversary date, you will receive an “Employment Certification” form to complete and return to our office. Once we receive this form, we will send a payment of up to $5000 to your lender. We will notify you also when the payment is sent.
How does the money get to my lender? Do I have to send the money myself?
Payments are sent directly to your lender from our office. You will receive a letter confirming that the payment was sent. Please allow some time for the lender to post the payment to your account. You should check your student loan account to verify that the payment was received.
Can I remain in the program if I change jobs?
YES, as long as your new (full-time) position and employer meet the definitions above, and there was no break in qualified employment. In other words, your new job must be at a “qualified facility” and your new position must be one that provides “direct care” to clients. You must remain employed in the social services field.
What happens if I leave the program? Is there a penalty if I do not remain at a qualified facility?
There is no penalty for withdrawing from the SSSLR Program. However, only complete years of service receive redemption payments. If you withdraw, or are employed for less than one full year, you will not receive a payment. There is no proration for part-time or part-year service.
Are there tax implications to participating in this program?
Yes, the payment made on your behalf is considered taxable income. This income will be reported to you via a 1099 during the month of January after the payment is made. You should consult your tax professional regarding your individual situation.