Q1: What are the eligibility requirements to participate in the Nursing Faculty Loan Redemption Program (NFLRP)?

A1: To qualify for student loan redemption under the NFLRP an applicant must meet all of the following requirements:

• Be a resident of the State of New Jersey and maintain domicile in the State throughout participation in the program;
• Hold a valid New Jersey Registered Nursing License or New Jersey Nurse Licensure Compact;
• Have already completed and earned a degree from an approved graduate degree program. Eligible programs are:
  • Master of Science in Nursing (MSN)
  • Doctor of Nursing Practice (DNP)
  • Doctor of Nursing Science (DNS)
  • Doctor of Philosophy (PhD) in Nursing
  • Doctor of Philosophy (PhD) in Another Related Field of Study
• Have maintained a GPA of 3.0 or higher on a scale of 4.0, or its equivalent, while enrolled in an approved graduate degree program;
• Have an outstanding balance on NJCLASS and/or federal student loans used to cover the cost of attendance at an approved graduate degree program, and not be in default on any student loan.

Q2: What types of schools qualify as an eligible institution?

A2: An “Eligible institution" refers to a school of nursing that is nationally accredited and licensed by the New Jersey Board of Nursing, or a nursing program at an institution of higher education licensed by the Office of the Secretary of Higher Education, which is also nationally accredited and licensed by the New Jersey Board of Nursing. You can find a list of eligible institutions here.

Q3: I do not live in New Jersey. Am I eligible to participate in the program?

A3: No. 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.

Q4: Does the institution I teach at have to be located in New Jersey?

A4: Yes, the institution must be located in New Jersey. Specifically, it must be a school of nursing that is nationally accredited and licensed by the New Jersey Board of Nursing, or a nursing program at an institution of higher education licensed by the Office of the Secretary of Higher Education- in New Jersey, which is also nationally accredited and licensed by the New Jersey Board of Nursing.

Q5: What degrees are eligible in order to teach at an eligible institution?

A5: To qualify for the NFLRP, you must have already completed and earned a degree from one of the following graduate degree programs:

• Master of Science in Nursing (MSN)
• Doctor of Nursing Practice (DNP)
• Doctor of Nursing Science (DNS)
• Doctor of Philosophy (PhD) in Nursing
• Doctor of Philosophy (PhD) in Another Related Field of Study

Additionally, you must have maintained a GPA of 3.0 or higher on a scale of 4.0, or its equivalent, while enrolled in an approved graduate degree program.

Q6: Can I apply if I am currently in graduate school, but am already teaching full/part time at an eligible institution?

A6: No. You must have graduated and earned an eligible graduate degree before applying for the NFLRP.

Q7: Is there a specific license required to participate in NFLRP?

A7: Yes. To be approved for participation in the NFLRP, you must hold a valid New Jersey Registered Nursing License or New Jersey Nurse Licensure Compact.

Q8: How long is my service obligation?

A8: The maximum service commitment is five (5) years, during which you can receive a total of up to $50,000 in student loan redemption. While you can withdraw from the program at any time, the amount of student loan redemption you can receive corresponds to the length of service.

Participants can receive up to $10,000 per year, for a maximum of five (5) years, in student loan redemption toward the principal and interest accrued on eligible student loans. Redemption amounts are based on faculty status:

• Up to $10,000 per year for full-time faculty employment (teaching 24 or more credits)
• Up to $8,000 per year for part-time faculty employment (teaching 18 to 23 credits)
• Up to $5,000 per year for part-time faculty employment (teaching 3 to 17 credits)

Q9: What happens if I stop working at an eligible institution?

A9: If you stop teaching at any eligible institution, you will no longer be eligible for the program. To remain in the program, you must teach at an eligible institution for up to five (5) consecutive years. At the end of each year of service, you are required to submit an Employer Certification form from each eligible institution where you taught in the previous year.

Q10: Can I receive service credit for the time I taught at the eligible institution prior to applying?

A10: No, service credit begins in the Academic Year in which you apply (July 1- June 30). You will not receive service credit for any prior years of teaching before your application.

Q11: What happens if I leave the program?

A11: There is no penalty for withdrawing from the NFLRP. However, you will only receive redemption payments for completed years of service. If you withdraw, or do not teach any courses during an academic year (July 1-June 30), you will not receive a payment for that year and will no longer be enrolled in the program.

Q12: Can I remain in the program if I change jobs and work at another institution?

A12: Yes, you can remain in the program if you change jobs, as long as you maintain continuous employment at an eligible institution throughout each year of service for up to five (5) years. You are also permitted to teach at more than one eligible institution. If you begin working at a new eligible institution at any point during program participation, you remain eligible to participate, provided you continue meeting the program requirements.

At the end of each year of service, you are required to submit an Employer Certification form from each eligible institution where you taught in the previous year. However, if you do not teach at least three (3) credits at an eligible institution during the entire year, you will no longer be eligible to participate in the program.

Q13: What happens if my employer refuses to complete my employment certification?

A13: A signature from your HR representative is required on the Employer Certification form in order to participate in the NFLRP. If your employer refuses to complete your certification, HESAA cannot redeem your student loans.

Q14: Are both my undergraduate and graduate student loans eligible for redemption?

A14: No. Student loans borrowed for your undergraduate degree are not eligible for redemption. Only student loans taken out for the graduate degree(s) that qualify you for this program are eligible for redemption, provided they meet the program's specific eligibility criteria.

Q15: What types of student loans are eligible for redemption?

A15: Eligible student loans include any federal or New Jersey state (NJCLASS) student loans where you are the borrower and which were incurred for the degree(s) that qualify you for this program, up to the program maximum of $50,000 total. Federal student loans such as Direct Loans, FFELP Loans, and Perkins Loans are eligible.

Student 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 for your degree) are not eligible for redemption under this program. Loans obtained for an undergraduate degree also are not eligible for redemption. Additionally, student loans that have already been paid off are not eligible for reimbursement under this program.

Q16: Can I participate in the program if my student loans are in default?

A16: No. Student loans in default are not eligible for the program.

Q17: Do I have to pay New Jersey State income tax on loan redemption payments?

A17: 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.

Q18: Do I have to pay federal income tax on loan redemption payments?

A18: HESAA does not provide legal advice on possible tax obligations resulting from receipt of NFLRP benefits. Beneficiaries of NFLRP remain personally responsible for, and should consult with their tax advisors for advice on, any tax obligations resulting from benefits paid on their behalf.

Q19: Can I participate in this program if I am working toward federal student loan forgiveness under the federal Public Service Loan Forgiveness Program (PSLF)?

A19: Yes, you can participate in the NFLRP while working toward federal student loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.

Q20: Do I need to continue to pay my student loans while participating in the NFLRP?

A20: Yes, you must continue to make your regular student loan payments while participating in the NFLRP. HESAA will send the loan redemption payments directly to your student loan servicer(s) at the end of each year of service, upon receipt of a complete Employer Certification form.

How to Apply

Q21: How and when do I apply to the NFLRP?

A21: You can apply to the program during the open application period, which starts on April 1, 2025. To apply, visit https://www.hesaa.org/Pages/NFLRP.aspx. New users will need to create an account in HESAA’s online portal, while returning users (e.g. those with any existing HESAA NJCLASS loans, NJBEST Matching Grant accounts, or any previous HESAA student loan redemption program applications) 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 April 30, 2025. Late or incomplete submissions will not be accepted, there will be no exceptions. Applications must include all required documents at the time of submission.  Incomplete applications will not be reviewed and will be deemed ineligible.

Q22: What documentation do I need to submit with my application?

A22: To submit a completed application you must provide the following required documents:

• Transcript(s) from each school attended to earn your MSN, DNP, DSN, or PhD
• Current New Jersey Nursing License or New Jersey Nurse Licensure Compact
• Employer Certification Form(s)
• Employment Contract(s)
• Student Loan Summary: Detailed documentation of eligible student loans, including the lender’s name, current balance, account number(s), and loan disbursement dates
• New Jersey State-Issued ID

Q23: Do I have to submit an official college transcript, or can I submit my personal copy or one I obtained from an online alumni access site?

A23: You do not need to submit an official college transcript, as long as the copy you submit includes the school name, degree awarded, Grade Point Average (GPA), and graduation date.

Q24: Can I send the application now and send the other documents later?

A24: You may upload your documents at any time during the open application period. However, once the application period closes, you will no longer be able to submit or resubmit any documents, either through the HESAA online portal or by any other means (e.g., email, postal carrier). Please ensure all required documents are uploaded to your application in the HESAA online portal before the deadline, as no exceptions will be made after the application window closes.

Q25: Do I have to reapply to the program if my prior application was denied or is my application automatically reconsidered each year?

A25: If your application is denied, you need to reapply to the program during the next available application period. 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.

Q26: Do I have to reapply each year if I am a current participant in the program?

A26: No, you do not need to reapply each year if you are a current participant in the program. Once you are accepted into the program and signed your service agreement, program funds are reserved for the duration of your entire service commitment. However, your employer(s) must certify your employment annually in order to remain in the program and to initiate payment by HESAA to your student loan servicer(s).

Q27: Why can’t I find my school listed in the application?

A27: Either the school where you teach is not eligible for the program or you did not enter the correct name for the school. Please ensure that you enter the name of the school on your employment contract, not the location of the branch campus. You can find a list of eligible institutions here.

Q28: How will my application be scored?

A28: Applications will be reviewed and scored based on the following criteria, weighted as follows:

• Total number of credits taught at the eligible institution(s) in the current year (July 1, 2024 to June 30, 2025) (50%)
• Total number of credits taught in an eligible Registered Nursing program (25%)
• Number of consecutive years (July 1–June 30) teaching at the same institution (20%)
• Type of degree obtained via an approved graduate program (5%)

Q29: If I do not complete five consecutive years in the NFLRP can I reapply in the future?

A29: Yes, you can reapply for the NFLRP in the future, subject to available funds. If you withdraw from the program by notifying HESAA, fail to return the completed and signed Employer Certification(s) within thirty days of the request for certifications, or do not meet other eligibility requirements, you may reapply, subject to available funds. You are not guaranteed re-entry into the program. However, if you are selected to participate again, you will be eligible for student loan redemption for the number of years remaining in your five-year eligibility cap.

Q30: What happens if the program runs out of money?

A30: The NFLRP is funded through an appropriation in the annual State budget, and funding for new participants is subject to availability each year. However, once you are accepted into the program and have signed your service agreement, funds are reserved for the five consecutive years of your service term, unless you withdraw from the program.

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

A31: You will be notified of your acceptance status once the application review and selection process is complete. 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 student loan redemption payments directly to your student loan servicer(s). The payments will be applied toward your outstanding principal and interest accrued on your eligible student loan. Once the payments are processed, you will receive confirmation. Please check your student loan account to verify receipt, but allow time for the lender to post the payment to your account. You must continue to make your regular student loan payments while participating in the NFLRP.

Q33: I returned the signed service agreement, when will my student loans be redeemed?

A33: Each year you will receive an “Employment Certification” form to be completed by your employer(s). Once HESAA receives the completed form(s) and an updated billing statement(s) for all eligible student loans being redeemed, a check will be sent to your lender(s).

Q34: What happens if my employment changes from full time to part time or from part time to full time; will my redemption amount increase or decrease?

A34: Your student loan redemption amount is determined annually based on the number of credits you teach. If your employment status changes, the redemption amount will adjust.

Over the course of five consecutive years, participants can receive up to $10,000 per year in student loan redemption toward the principal and interest accrued on eligible student loans. Redemption amounts are based on faculty status:

• Up to $10,000 per year for full-time faculty employment (teaching 24 or more credits)
• Up to $8,000 per year for part-time faculty employment (teaching 18 to 23 credits)
• Up to $5,000 per year for part-time faculty employment (teaching 3 to 17 credits)

Q35: What happens if I take a leave of absence during my service obligation?

A35: If you take a leave of absence during your service obligation and will not be teaching any courses during the year (July 1-June 30), 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 years to account for approved leave. If you teach any courses during a given year, your student loan redemption amount for that year will be based on the number of credits taught.

Q36: What happens if I do not complete my service obligation?

A36: If you do not fulfill your service obligation, you will not be eligible for student loan redemption for that service period and will be withdrawn from the program.

Q37: What can I do if my application is denied?

A37: 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 the date of 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.

Q38: What supporting documentation should I include with my appeal?

A38: When submitting your appeal, include any supporting documents that you believe could clarify your eligibility as related to the reasons provided in the denial letter or confirm that you submitted all required documents during the open application period. Please note: if you did not submit any of the required documents during the open application period, at the time of application, you cannot complete your application by submitting the required documents upon appeal.

Q39: How long does the appeals process take?

A39: Once an appeal is submitted, HESAA will review your appeal and provide a written response within 30 days of receiving it.

Q40: How will I be notified of the outcome of my appeal?

A40: HESAA will notify you in writing of the outcome of your appeal.

Q41: Can I reapply if my appeal is denied?

A41: Yes, if your appeal is denied, you can reapply during any future application cycle, provided you meet the eligibility criteria at that time.