The bill establishes the Teaching Scholars Loan Redemption Program within the Higher Education Student Assistance Authority, aimed at addressing the critical shortage of educators in New Jersey. The program offers loan redemption for participants who finance their undergraduate or graduate studies in exchange for committing to full-time employment as educators in public schools within the state. To be eligible, applicants must be state residents, recent high school graduates, and enrolled in a full-time course of study at a higher education institution in New Jersey, among other criteria. The program will select a minimum of 100 high school graduates each year, with total loan amounts capped at $40,000 for undergraduate studies and an additional $10,000 for graduate studies.

Participants must enter into a written contract with the authority, specifying the duration of their service and the total loan amount to be redeemed. Loan redemption is limited to $10,000 for each full year of service, with a maximum of $50,000 for five years. The bill also allows participants to nullify their contracts under certain conditions, such as death or total disability, and provides for the termination of service obligations in cases of extreme hardship. Overall, the program is designed to incentivize high-achieving students to pursue teaching careers in New Jersey's public schools.