NJCLASS Loan Default
It is important that you avoid defaulting on any student loan whether it is a federal student loan or an NJCLASS loan. If you default on a loan, the entire balance becomes due in full immediately.
An NJCLASS loan with payments due monthly is considered to be in default status when the loan remains delinquent for at least 180 days. An NJCLASS loan with payments due less frequently than monthly is considered to be in a default status when the loan remains delinquent for at least 240 days.
If you default on an NJCLASS loan, you may lose your eligibility for any State Tax refund or rebate, such as Gross Revenue Tax refunds or Homestead Rebates. If you play the lottery, your winnings can be redirected to HESAA to pay down your debt. Your credit will be negatively impacted and you may not be able to obtain a professional license. Your account will also be assigned to a collection attorney, who will initiate litigation and seek a judgment to obtain repayment of the debt, which may result in additional costs being added to your account balance, such as attorney fees and other costs.
Once your defaulted NJCLASS loan has been assigned to a collection attorney, all contact, correspondence and payments must be made with that collection attorney.