N.J. teachers have just days left to apply for massive student loan relief program

New Jersey has a program that gives some teachers up to $20,000 to pay off student loans if they teach in hard-to-fill subjects. (Canva for NJ.com)

By Liz Rosenberg | NJ Advance Media for NJ.com

Educators who teach hard-to-staff subjects in more than 400 eligible New Jersey schools have a few more days to apply for up to $20,000 in student loan help from the state.

Teachers who specialize in several subjects — including math, science, special education, English as a Second Language, Career and Technical Education and world languages — can apply to receive up to $5,000 a year in student loan forgiveness if they work in a school with a history of low performance on state tests.

The program is not new, but the eligibility criteria was expanded this year to include teachers hired after 2009. The program is fully funded to forgive teachers’ loans for four years if they apply and are accepted this year.

But there is a catch. The Student Loan Redemption Program for Teachers is slated to lose almost all of its funding for the next cohort of applicants in 2026, according to Gov. Phil Murphy’s proposed state budget. As a result, teachers who who wait until next year to apply may be turned away for lack of funding.

Murphy’s 2026 proposed budget would eliminate 90% of the program’s funding, decreasing the state’s support from $5 million to $500,000 a year.

Assemblywoman Aura Dunn, R-25th Dist., said she asked the state Department of Higher Education to justify Murphy’s proposed cuts.

“I have yet to see a data-driven rationale,” she said.

“At a time when New Jersey is struggling to attract and retain qualified educators, slashing student loan redemption programs is both short-sighted and counterproductive,” Dunn said.

A spokesperson for Murphy declined to comment on the cuts to the program.

But Murphy previously said he is increasing education funding by $444 million in his proposed budget and some spending cuts were necessary.

“And while, yes, every responsible budget, including this one, requires hard decisions — like scaling back programs that we would rather increase funding for — we can, and we must, make those decisions while also keeping our promises, whether it be making the full payment into our pension system or fully funding our public education system,” Murphy said.

A 2025 Learning Policy Institute report found 60% of teachers with outstanding student loans reported high or very high levels of related stress.

Participants in New Jersey’s program can receive up to $5,000 annually, totaling a maximum of $20,000 over four years. The exact amount received depends on their specific student loans. The payments cover 25% of the principal and interest of eligible student loan expenses, capped at $5,000 per year.

According to Higher Education Student Assistance Authority, which administers the loans, to be eligible teachers must:

• Be a New Jersey resident and maintain residency in the state throughout program participation.

• Hold certification from the state Department of Education to teach in the state.

• Have been hired on or after Jan. 1, 2009, to teach in a high-need field at the time of hire.

• Currently be employed in a high-need field at an eligible school at the time of application.

• Have not previously been selected for participation in the program.

• Not be in default on any qualifying student loan.

In 2024, the state earmarked almost $1 million to fund 56 teachers through the program for the next four years, if they continue to meet the eligibility criteria, state officials said.

Dunn said she will advocate for restoring funding to the state’s loan redemption programs as the state’s budget is finalized. Lawmakers are expected to vote on a budget by the end of the month for Murphy to sign.

“If we are serious about strengthening our education system, we need to back our teachers with support, not debt,” Dunn said.

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