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BHP-LRP Q&A

Behavioral Healthcare Provider Loan Redemption Program (BHP-LRP)
Questions & Answers

Below is an overview of the key topics covered in this Q&A. Click on any topic to expand and view the related questions and answers.

Q1: What are the eligibility requirements to participate in the BHP-LRP?

A1: To qualify for student loan redemption under the BHP-LRP, an applicant must meet all of the following requirements: Be a New Jersey resident and maintain residency in the State during program participation. Be employed full-time, or plan to be employed full-time by October 1, 2024, as an eligible behavioral healthcare provider at an approved site. Maintain a valid license or certification as a behavioral healthcare provider in New Jersey throughout program participation. Commit to providing clinical mental or behavioral healthcare for at least two years at an approved site, in accordance with the terms of a contract with HESAA. Not be in default on any eligible qualifying loan. Not have previously been selected for participation in the program. Not be participating in any other New Jersey State tuition reimbursement or student loan redemption program or the federally administered National Health Service Corps Loan Repayment Program.

Q2: Which providers are eligible to participate in the BHP-LRP?

A2: Eligible behavioral healthcare provider licenses/certifications include: Board Certified Behavior Analysts, Licensed Associate Counselors, Licensed Clinical Alcohol & Drug Counselors, Licensed Clinical Social Workers, Licensed Professional Counselors, Licensed Psychologists, Licensed Social Workers, Psychiatric Nurse Mental Health Clinical Specialists, and Psychiatrists.

Q3: What types of employers or sites qualify as approved sites for the BHP-LRP?

A3: Approved sites include: community providers operated by a nonprofit organization, institutions of higher education, school districts, municipalities, county governments, State agencies, and the federal government.

Q4: Do I have to work for a non-profit or government entity to be eligible for the program?

A4: Yes, to be eligible for the program, your employer must be a non-profit or government entity.

Q5: If my for-profit employer places me in a non-profit facility for my daily work, am I eligible for the program?

A5: No, you are not eligible for the program if your employer is a for-profit entity, even if you are placed in a non-profit facility for your daily work. To be eligible, you must be directly employed by a non-profit or government entity that meets the program’s criteria.

Q6: How does HESAA determine which behavioral healthcare occupations/job titles are in demand?

A6: Eligibility is based on the list of eligible behavioral healthcare providers defined by statute and regulation. For the purpose of creating the scoring rubric, each year HESAA consults the current Industry and Occupation Employment Projections published by the New Jersey Department of Labor and Workforce Development to determine projected demand for behavioral healthcare occupations.

You can find more information at: https://www.nj.gov/labor/labormarketinformation/employment-wages/industry-occupational-projections/.

Q7: I do not live in New Jersey. Am I eligible to participate in the program?

A7: You are only eligible to participate in the program if you live in New Jersey. Participants must be New Jersey residents both at the time of application and throughout the duration of program participation.

Q8: Are licensed marriage and family counselors/therapists eligible for the program?

A8: No, licensed marriage and family counselors/therapists are not eligible for the program.

Q9: Are licensed social workers eligible for the program?

A9: Yes, both licensed social workers (LSW) and licensed clinical social workers (LCSW) are eligible for participation in the program, provided they meet all other program requirements.

Q10: Are school social workers that are certified but not licensed eligible to participate in the program?

A10: Social workers without a license are not eligible to participate in the program, even if they are certified. The program requires participants to hold a valid license in their field to qualify for the program.

Q11: Are school counselors and school psychologists eligible for the program?

A11: Licensed social workers (LSW and LCSW), licensed therapists/counselors (LAC and LPC), and licensed psychologists (Ph.D. or Psy.D.) are eligible for the program if they work in a school and provide at least 20 hours per week of direct care or service to students. School counselors without one of the approved licenses are not eligible for the program.

Q12: Since Licensed Social Workers (LSW) and Licensed Associate Counselors (LAC) are eligible, if a participant with an LSW or LAC enters the program and later becomes a Licensed Clinical Social Worker (LCSW) or Licensed Professional Counselor (LPC), will their scoring change? Will they need to complete and submit a new application during the duration of the program?

A12: No, participants who enter the program with an LSW or LAC and later become an LCSW or LPC will not have their scoring changed based on their updated licensure. They will not need to submit a new application. Their participation in the program continues under the original application, provided they meet all other eligibility requirements throughout the duration of program participation.

Q13: Can I stay in the program if I switch positions?

A13: You can stay in the program if you switch positions, as long as the new position meets the program’s eligibility requirements. You must notify HESAA of this change immediately and your new employer must certify that your new role qualifies. If you switch to a position that no longer qualifies, you will no longer be eligible to remain in the program.

HESAA will review participants’ eligibility on a case-by-case basis when participants switch to a new position. If your new position qualifies for ongoing participation, you must then continue to meet all other program requirements.

Q14: What happens if I stop working at an approved site?

A14: If you stop working at an approved site, you will no longer be eligible for the program. Your employer will need to complete and submit an employer certification at the end of each two-year term to confirm your eligibility for student loan redemption.

Q15: I started working at an approved site prior to applying for the program. Can I receive service credit for the time I worked at the approved placement site prior to applying?

A15: No, you cannot receive service credit for any time worked at an approved site prior to the effective date of your contract. Service credit is only granted for work completed after your application has been accepted, your contract is signed, and you are officially enrolled in the program. Service credit begins from the effective date on the contract.

Q16: Do I need to serve patients directly? What if I am in a managerial position?

A16: Yes, to be eligible for the program, you must provide direct clinical care to patients or clients for a minimum of 20 hours per week. Managerial positions that do not involve direct patient contact do not qualify for the program.

Q17: If I did not work primarily with children or adolescents when I applied for the program but begin working primarily with children or adolescents during my program participation, do I become eligible for the incentive grant?

A17: Participants who begin working with children or adolescents after enrolling in the program must notify HESAA prior to the anniversary date of their agreement. From that point, they will be required to work a full year starting from the next anniversary date to be eligible for a grant. Participants can only receive grants for the remainder of their term in the program.

For example, if the participant’s contract begins in March 2025 and they start working with children in October 2025, the first grant period would be from March 1, 2026, to February 28, 2027. Participants who stop working with children are not required to notify HESAA, as their employers will indicate this on the annual certification when asked whether the participant worked with children for the full year.

Q18: Are both my undergraduate and graduate student loans eligible for redemption?

A18: Yes, both undergraduate and graduate student loans may be eligible for redemption, provided they meet the program's specific eligibility criteria.

Q19: What types of loans are eligible for redemption?

A19: Eligible loans include any government or commercial student loans for actual tuition costs and reasonable education and living expenses incurred while pursuing a degree in a mental or behavioral healthcare field. Federal student loans such as Direct Loans, FFELP Loans, and Perkins Loans are eligible.

Loans borrowed by someone else on your behalf (e.g., Parent PLUS loans), loans you borrowed or co-signed on behalf of someone else, and non-student loans (e.g., home equity loans, even if used to pay off a student loan) are not eligible for redemption under this program. Additionally, student loans that have already been paid off are not eligible for reimbursement under this program.

Q20: Can I participate in the program if my student loans are in default?

A20: No, student loans in default are not eligible for the program.

Q21: Do I have to pay New Jersey State income tax on loan redemption payments?

A21: HESAA does not offer legal or tax advice. Please consult an attorney, accountant, and/or tax advisor for specific guidance. As of July 2023, the New Jersey Division of Taxation’s guidance for New Jersey Gross Income Tax (GIT) states as follows: “cancellation of debt (COD) or forgiveness of debt income is not subject to tax. For example, student loan debt forgiveness.” For more details, you can review the New Jersey Division of Taxation’s guidance here: https://www.state.nj.us/treasury/taxation/ppploan.shtml.

Please note, HESAA is not responsible for any changes or updates to this external tax guidance due to changes in law or interpretation after the date provided.

Q22: Do I have to pay federal income tax on loan redemption payments?

A22: HESAA does not offer legal or tax advice. Please consult an attorney, accountant, and/or tax advisor for specific guidance. As of July 2023, the Internal Revenue Service (IRS) states that: “Amounts that meet the requirements for any of the following exceptions aren't cancellation of debt income,” and some types of student loan cancellation under certain circumstances may qualify for these exceptions. For more details, you can review the IRS guidance here: https://www.irs.gov/taxtopics/tc431.

Please note, HESAA is not responsible for any changes or updates to this external tax guidance due to changes in law or interpretation after the date provided.

Q23: If I am working toward federal student loan forgiveness under the federal Public Service Loan Forgiveness Program (PSLF), can I participate in this program?

A23: Yes, you can participate in the New Jersey Behavioral Healthcare Provider Loan Redemption program while working toward federal student loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.

Q24: I applied to the Home- and Community Based Loan Redemption Program (HBCS-LRP) in July 2024. Can I also apply to this program while waiting for approval from HBCS-LRP?

A24: If you applied to the HBCS-LRP, you may also apply to the BHP-LRP as long as you meet the eligibility requirements. However, please note that you cannot participate in multiple New Jersey State loan redemption programs simultaneously.

Approval letters for the HBCS-LRP will be sent out in November. If accepted into HBCS-LRP, you must decide whether to sign the agreement to participate within 30 days of receipt. Please note that BHP-LRP approval letters will be sent out on or after February 15, 2025, and if you sign the HBCS-LRP agreement, you will not be eligible to participate the BHP-LRP.

Q25: How is the employer certification for the BHP-LRP different from the one required by the HBCS-LRP? Can I use the same one for both programs?

A25: While both programs require employer certification, the specific details for each differ based on the requirements of the program. The BHP-LRP employer certification is tailored to ensure you meet the eligibility requirements for providing behavioral healthcare services, while the HBCS-LRP employer certification is designed to ensure applicants are providing home- and community-based services at approved agencies that fall under the New Jersey Department of Human Services and the New Jersey Department of Children and Families. Make sure to review the requirements for BHP-LRP employer certification closely to avoid any discrepancies.

Q26: How and when do I apply to the BHP-LRP?

A26: You can apply to the program during the open application period, which started on October 1, 2024. To apply, visit www.hesaa.org/Pages/BHLRP.aspx. New users will need to create an account in HESAA’s online portal, while returning users — those with any existing HESAA NJCLASS loans or NJBEST Matching Grant accounts — can log in to start their application. Please note, this is not your NJFAMS login.

Complete applications, including all required documentation, must be submitted online no later than 11:59 PM ET on October 31, 2024. Late or incomplete submissions will not be accepted.

Q27: What documentation do I need to submit with my application?

A27: You are required to submit a completed application along with the following required documents:

  • New Jersey Driver’s License or State/County-Issued Identification: Proof of residency in the State of New Jersey.
  • Employer Certification Form: Proof of employment at an approved site, signed by both you and a representative from your employer’s Human Resources department.
  • Licensure/Certification: Proof of a valid license or certification allowing you to provide behavioral healthcare services in the State of New Jersey.
  • Loan Summary: Detailed documentation of eligible student loans, including the lender’s name, current balance, account number(s), and loan disbursement dates.
  • School Transcript: Verification that the loans were taken for a behavioral healthcare degree, including relevant dates and coursework.

Q28: How will my application be scored?

A28: HESAA will evaluate and score applications using a defined set of criteria, allocating available funding to the highest-ranking applications based on the following:

  • In-demand occupation/title (35%)
  • Geographic location of the applicant’s place of employment (25%)
  • Applicant’s current salary in their behavioral healthcare occupation (20%)
  • Whether the applicant works primarily with children or adolescents (20%)

Q29: Do I have to reapply to the program if my prior application was denied or is my application automatically reconsidered each year?

A29: If your prior application was denied, you need to reapply to the program. Applications are not automatically reconsidered each year. You must submit a new application during the open application period to be considered for the new round of funding.

Q30: Do I have to reapply each year if I am a current participant in the program?

A30: No, you do not need to reapply each year. However, your employer must certify your employment every two years. If you are eligible for the annual incentive grant – which provides an additional financial incentive for providers who work primarily with children or adolescents – your employer will need to certify your employment annually to ensure continued eligibility for the incentive.

Q31: When will I be notified if I am accepted into the program?

A31: You will be notified of your acceptance status on or after February 15, 2025, once the review and selection process is completed. Be sure to monitor your email and check your application status online through the HESAA website for updates.

Q32: How is the student loan redemption amount applied to my student loans?

A32: HESAA will send the loan redemption payments directly to your student loan servicer(s). The payments will be applied toward your outstanding student loan balance, and you will receive confirmation once the payments are processed.

Q33: How long is my service obligation?

A33: Your service obligation for the program is at least two years. After completing two years of qualifying service at an approved site, you may be eligible for loan redemption of up to $50,000, which will be applied to your student loan balance(s). Participants may qualify for an additional $50,000 in student loan redemption after each subsequent two-year period of qualifying service, for up to two additional periods of qualifying service. The maximum possible total of student loan redemption (excluding the incentive grant) is $150,000 over a service period of up to six years.

Q34: Can I receive funding from both the student loan redemption program and the incentive grant at the same time?

A34: Yes, participants who qualify for the incentive grant receive the annual $5,000 incentive, in addition to the loan redemption amounts, provided they meet the eligibility criteria for both.

Q35: How do I receive the annual $5,000 incentive grant for working primarily with children or adolescents?

A35: To receive the annual $5,000 incentive grant for working primarily with children or adolescents, you and your employer must complete an employer certification each year. The certification verifies that at least 51% of your clinical practice in the preceding year was with individuals under the age of 18. Once certified, the $5,000 incentive will be paid directly to you. Participants may receive up to $30,000 over a six-year period, provided they meet the eligibility criteria each year.

Q36: What happens if I take a leave of absence during my service obligation?

A36: If you take a leave of absence during your service obligation, you must submit written notification to HESAA detailing your last day of work, the type of leave time used (e.g., family or medical leave), and the date you plan to return to work. You are required to follow the leave of absence policy of your approved site. HESAA will adjust contract start and end dates to account for approved leave. If your employer requires you to make up the time you missed, you must inform HESAA and request an extension of your approved service contract time to cover the additional time.

Q37: What happens if I do not complete my service obligation?

A37: If you do not fulfill your service obligation, and you will not be eligible for redemption or incentive benefits under the program.

Q38: What can I do if my application is denied?

A38: If your application is denied, HESAA will provide written notification explaining the reasons for the denial. The letter will include instructions on where to send a written appeal, along with any supporting documentation, which must be submitted within 30 days of receiving the denial notice. HESAA will review your appeal and respond within 30 days. If your appeal is denied, you may make a further appeal to the New Jersey Superior Court Appellate Division.

Q39: What supporting documentation should I include with my appeal?

A39: When submitting your appeal, include any supporting documents that you believe could clarify your eligibility, such as proof of employment, licensure, or any other documents related to the reasons provided in the denial letter.

Q40: How long does the appeals process take?

A40: Once an appeal is submitted, HESAA will review your appeal and provide a written response within 30 days of receiving it.

Q41: How will I be notified of the outcome of my appeal?

A41: HESAA will notify you in writing of the outcome of your appeal. Be sure to monitor your email or postal mail for the decision.

Q42: Can I reapply if my appeal is denied?

A42: Yes, if your appeal is denied, you can reapply during the next application cycle, provided you meet the eligibility criteria at that time.