Written By Kevin Payne
Paying off student loans is an expensive burden for most borrowers to bear. Borrowers who live in the state of New Jersey aren’t immune to this burden. The average student debt for borrowers in New Jersey is $35,794.
Several state-specific and federal loan forgiveness programs are available to ease the weight of student loan debt for some residents. Here's a look at loan forgiveness options available through the state of New Jersey and the U.S. Department of Education.
Student loan forgiveness in New Jersey
The state of New Jersey is home to several state-specific student loan forgiveness programs. These programs are typically aimed at New Jersey student loan borrowers that serve the community in some capacity, like healthcare workers and other specific professions.
All of these programs are specifically for borrowers who received financial aid from the federal government. Student loans from private lenders aren't eligible for loan forgiveness programs.
Here’s a breakdown of New Jersey student loan forgiveness programs and eligibility requirements.
John R. Justice Federal Student Loan Redemption Program
If you're a lawyer, you might be eligible for the John R. Justice (JRJ) Student Loan Repayment Program. This program provides loan repayment assistance for lawyers.
To qualify, you must be a state public defender or prosecutor licensed to practice law in New Jersey. If accepted into the program, you must agree to remain employed as a public defender or prosecutor in the state for at least three years. Your loans must be in good standing to qualify for the program.
Contact the New Jersey Higher Education Student Assistance Authority (HESAA) for more details and to apply for the program.
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National Health Services Corp Loan Repayment Program in New Jersey
The National Health Service Corps (NHSC) Loan Repayment Program is a loan repayment program for licensed primary care providers in specific medical disciplines. The federal program is available for eligible New Jersey residents who work at a designated HPSA site servicing underserved populations.
Individuals who commit to a two-year service contract working full time will receive up to $50,000 of student loan repayment. Part-time workers will receive up to $25,000 of loan repayment for working half-time for two years.
After you complete the initial two-year service commitment, you may be eligible to receive additional loan repayment funds given on one-year continuation service contracts.
New Jersey STEM Loan Redemption Program
The New Jersey STEM Loan Redemption Program offers loan repayment for individuals working full-time in the fields of science, technology, engineering, and mathematics (STEM) fields in the state of New Jersey.
The program requires at least a four-year commitment. Qualifying employees who work full-time for four years in STEM fields will receive up to $2,000 in loan repayment per year, for a total of up to $8,000.
Interested New Jersey residents can contact the New Jersey Higher Education Student Assistance Authority (HESAA) for more details and to apply for the program.
Nursing Faculty Loan Redemption Program
New Jersey created another loan forgiveness program specifically to address nursing faculty shortages in the state. The Nursing Faculty Loan Redemption Program offers loan forgiveness in exchange for full-time employment at a New Jersey nursing school for five years following the completion of an approved graduate degree program.
The HESAA sends payments directly to your loan servicer upon completion of a year of eligible service. The maximum payout schedule for the program is broken down based on the year of service:
- $5,000 for your first year
- $7,000 for your second year
- $10,000 for your third year
- $13,000 for your fourth year
- $15,000 for your fifth year
The maximum amount an individual can receive in loan redemption is $50,000 total.
Primary Care Practitioner Loan Redemption Program
Qualifying New Jersey primary care physicians might be eligible for loan forgiveness through the
Primary Care Physician Loan Redemption Program. The program provides up to $120,000 in student loan repayment in exchange for two to four years of service in designated medically underserved areas in New Jersey.
You must begin your service commitment within two years of completing your necessary training or residency. Funding is subject to availability within the state. You can receive more information about the Primary Care Physician Loan Redemption Program and apply for the program through the HESAA website.
If you qualify for this forgiveness program, make sure to check out our list of top New Jersey physician home loan programs you could also qualify for.
Federal student loan forgiveness programs for New Jersey residents
Besides state-specific loan forgiveness programs, New Jersey borrowers can also explore several federal loan forgiveness programs available. The U.S. Department of Education offers the following loan forgiveness programs:
- Public Service Loan Forgiveness (PSLF)
- Income-driven repayment loan forgiveness
- Perkins Loan Cancellation
- Teacher Loan Forgiveness
Keep in mind that each of these programs has its own requirements and application process. Federal student loan forgiveness programs might require between five and 25 years of qualifying loan payments to receive forgiveness. Depending on your loan debt, a state-specific program might be enough to pay off your student loans with a shorter time commitment.
Most of the federal loan forgiveness programs are available for individuals working in a specific career field. One exception is IDR loan forgiveness, which is open to anyone borrower on an IDR plan. However, IDR loan forgiveness comes with a sizable tax implication to consider before pursuing. The state of New Jersey and the federal government offers several options to help resident pay off their student loan debt.
Next steps for student loan forgiveness in New Jersey
New Jersey loan forgiveness programs and federal programs are geared toward specific career fields and require a fixed number of service years to qualify. Be aware of this commitment before applying.
Borrowers with private student loans should consider refinancing student loans. With the right credit score and history, you could qualify for lower interest rates and more affordable monthly payments.
If you need help determining the right repayment path, we can help. Student Loan Planner consultants work alongside you to find the best loan repayment and forgiveness options to get you out of student loan debt.
Not sure what to do with your student loans?
Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).
