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collapse Nursing Faculty Loan Redemption
expand Are there tax implications to participating in this program?
Payments made by HESAA to redeem a portion of your student loan balance(s) are currently not treated as taxable gross income. The American Rescue Plan Act temporarily excluded from federal income taxes any student loan payments that a third party makes on your behalf between 2021 and 2025. Under current law, loan redemption payments made on or after January 1, 2026 will once again be considered taxable income for federal income tax purposes. However, loan redemption payments made on your behalf are not considered taxable income for New Jersey State gross income taxes, and unlike the federal income tax law, the New Jersey State law is not scheduled to expire.
expand Can I remain in the program if I change jobs?
After initially being hired for full-time faculty employment at an eligible institution, you must maintain continuous full-time employment at an eligible institution. If you change jobs and are no longer teaching at an eligible institution, you are no longer eligible to participate in the program.
expand 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.
expand Can my application be added to the wait list?
In the event program funds are exhausted in a given fiscal year, applicants will be placed on a waiting list for loan redemption in the date order in which the Authority received their applications. The number of people on the waiting list will be limited to an amount equal to the number of participants newly funded in that fiscal year. Applicants who are not accepted into the program, or onto the waiting list, may reapply the following fiscal year, provided funding is available. If program funds do not become available in a given fiscal year, eligible applicants on the waiting list will carry over to the next fiscal year for potential eligibility for program participation, subject to program funding.
expand 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.  However, you will need to provide an Employer Certification annually in order to remain in the program.
expand 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.
expand 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 the Higher Education Student Assistance Authority (HESAA) as a single package.
expand How does the money get to my lender? Do I have to send the money myself?
HESAA sends the payment directly to your lender. 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.
expand How long is the service agreement/commitment?
Although you may withdraw from the program at any time, the maximum service commitment is five years.
expand I am currently in graduate school and haven’t graduated yet, but I’m already working full-time, can I apply now?
No. Your employment as a full-time faculty member must begin within one year after your graduation date.
expand I received a notice stating that I am not eligible for participation. Where can I appeal this decision?
A written appeal may be submitted to the Higher Education Student Assistance Authority Director of Legal and Governmental Affairs within 30 days of the date of the notification of ineligibility. The written appeal must include a copy of the notification of ineligibility received by the applicant from the Authority and the reason(s) why the applicant feels he or she is eligible to participate in the program along with any documentation which the applicant has obtained to support the appeal.  
expand 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  to your lender. The maximum payment schedule is as follows: First year: $5,000; second year: $7,000; third year: $10,000; fourth year: $13,000; and fifth year: $15,000. The total loan redemption cannot exceed $50,000. We will notify you also when the payment is sent.
expand My student loans are in default. Am I eligible to participate in the program?
No. Defaulted student loans are not considered eligible for redemption under the program guidelines.
expand What documents do I need to send to support eligible student loan balances?
A copy of the most recent eligible student loan billing statement is required.
expand 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 it, date it, and have it notarized. Return both pages of the agreement to our office. Keep a copy for your records. We will also notify applicants who do not meet the eligibility criteria.
expand 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 NFLR 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.
expand What happens if the program runs out of money?
The Nursing Faculty Loan Redemption Program is funded through a State of New Jersey appropriation.  As a result, funds are limited for this program. If you are already in the program (with a signed service agreement), then funds are reserved for your entire service term. Once funds are allotted, no further applications will be accepted. As funds become available, participants on any  wait list may be offered service agreements before new applications are accepted.
expand What type of student loans can be redeemed?
Any federal or New Jersey state (NJCLASS) student loans where you are the borrower and which were incurred for the degree which qualifies you for this program are eligible, up to the program maximum of $50,000 total. Loans that someone else borrowed on your behalf (such as PLUS loans) are not eligible for redemption.  Loans obtained for an undergraduate degree are not eligible for redemption.