Governor Philip D. Murphy
• Lt. Governor Sheila Y. Oliver
Services A to Z
NJ Gov FAQs
HESAA e-Access Portal
> Truth-in-Lending (TILA)
About Us | New Jersey Student Financial Aid | HESAA
FAQ Topic Links (Expand to see sub-topics, where applicable)
Login, Password, and Registration
Nursing Faculty Loan Redemption
HESAA Staff and Business Partners (Schools, Attorneys) Passwords
How do I complete "Estimated Financial Assistance?"
Your estimated Financial Assistance is your financial aid package before the NJCLASS loan. You should include Federal and State student aid and any scholarships you’ve been awarded. Your financial aid office can provide this number to you if you are still unsure of your aid package.
What does Usury Interest Rate mean?
Usury Interest rates are excessively high. Usury laws are state laws that specify the maximum legal interest rate at which loans can be made.
What is a "Loan Offer" and why must I accept my loan within 30 days?
After we complete our review of your application documents and have received the school’s certification, we are ready to offer you the loan. New federal regulations require that lenders honor the terms and conditions of the loans they offer for 30 days. This gives borrowers time to review the loan terms and decide if they want the loan. If you want the loan, then accept the loan offer. If you’ve changed your mind and no longer wish to borrow, then decline the offer. If you take no action on the offer it will expire and the lender is no longer required to honor the terms and conditions contained in the original Loan Offer.
What is a "Private Education Loan?"
The Federal Reserve Board uses this term to broadly categorize any loan that is not a Title-IV loan. A private education loan is a student loan independently financed and administered by a nonfederal lender. A private education loan is sometimes also referred to as an alternative or supplemental loan. NJCLASS is a supplemental loan program authorized through the State Legislature.
What is a pre-paid finance charge?
A pre-paid finance charge is any finance charge (other than interest) paid to the lender in cash or check or withheld from the loan proceeds used for processing and servicing the loan. The loan administration fee that is charged to NJCLASS borrowers is a prepaid finance charge.
What is a Private Education Self Certification Form and why do I need to complete this?
The Federal Government requires you to submit information regarding the cost of attendance and expected financial aid. You will be asked to complete a Federal Private Education Loan Applicant Self-Certification during this application process. You will need to know the cost of attendance for the period of enrollment covered by this loan and the estimated financial assistance you will be receiving. The difference between these two items is your loan amount. You can obtain this information from the Financial Aid office at your school. The purpose of this form is to ensure that the student/borrower is aware of the costs associated with attending their school and the amount of loans that may be necessary.
What is an APR?
The Annual Percentage Rate (APR) is the cost of credit expressed as a yearly rate including interest and loan fees. This allows the borrower to compare loans; however the APR should not be confused with the actual note rate.
What is cost of attendance?
The cost of attendance is an estimation of the total amount it will cost a student to attend a particular school for a specific period of enrollment. The cost of attendance usually includes tuition, fees, room and board, books and supplies, and other expenses.
What is period of enrollment?
This is the academic year, academic term (such as semester, trimester, or quarter) or the numbers of weeks of instructional time for which the applicant is requesting student financial assistance.
What is the amount financed?
The Amount Financed is the loan amount applied for less any pre-paid finance charges. For example, if the borrower’s loan is for $10,000 and the pre-paid finance charges are $200, the amount financed would be $9800.
What is the initial finance charge?
A finance charge is any fee or charge representing the cost of credit, or the cost of borrowing. It includes not only interest but other charges as well, such as transaction fees.
What is the purpose of the three day right to rescind and how will it affect my loan?
The three day right to rescind provides the borrower with a final opportunity to evaluate their need for the loan after acceptance and prior to the funds being disbursed. It is during this period that the borrower can rescind or cancel their loan application. If you rescind your loan, it will be cancelled. If you decide later that you need additional funds, you’ll need to reapply. There is no guarantee that the terms and conditions of the original offer will be available if you reapply.
What is the Truth in Lending Act (TILA)?
This law, established in 1968, is designed to protect consumers in certain credit transactions by requiring clear disclosure of key terms of the lending arrangements and all costs associated with the loan. The sole purpose of TILA is to promote the informed use of consumer credit, by requiring disclosures about its terms and standardizing the manner in which costs associated with borrowing are calculated and disclosed. It is important to note that this law does not regulate the costs or charges associated with a loan; it just requires that this information is disclosed to the borrower in a timely fashion.
What is Title IV aid?
Title IV is part of the Higher Education Act of 1965, as Amended. It governs the administration of federal student financial aid programs in the United States. Title IV student aid includes the Federal Pell Grant Program, the Academic Competitiveness Grant (ACG) Program, the Federal Supplemental Educational Opportunity Grant (FSEOG) Program, the Leveraging Educational Assistance Partnership (LEAP) Program, the Federal Family Education Loan Program (FFELP), the Federal Work-Study (FWS) Program, the William D. Ford Federal Direct Loan (Direct Loan) Program, the Federal Perkins Loan Program, the National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) Program, and the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program.
Terms & Conditions