NJCLASS Continues to Assist Students Access and Afford Higher Education

Categories: General
      Date: Aug 11, 2008
     Title: NJCLASS Continues to Assist Students Access and Afford Higher Education

The New Jersey Higher Education Student Assistance Authority (HESAA) is pleased to announce that the NJCLASS Loan Program will be offered for the 2008-09 academic year. With rates as low as 7.62%, NJCLASS is available to New Jersey residents and out of state students attending a New Jersey college.

Since 1991 NJCLASS has assisted New Jersey students and families meet college costs. This past year NJCLASS helped nearly 30,000 students with over $350 million in student aid. As intended by the Legislature, the NJCLASS program is an inexpensive alternative to financing college costs when compared to other high interest rate private loan products. Michael Angulo, Executive Director of HESAA, urged, “Students and families should carefully review borrower benefits including interest rates, fees, and repayment terms when considering student loans.” NJCLASS has been recognized nationally, and is certain to receive high marks from New Jersey families again this year.

As costs for a college education continue to rise, Federal grant assistance has not kept pace. Consequently, a growing number of students must rely on student loans to attend college. However, due to the ongoing credit crisis precipitated by the mortgage market, many states had to suspend their loan programs. The NJCLASS program represents the first significant student loan issuance by any public entity nationwide over the past year. In fact, HESAA is one of only three states in the country offering supplemental loans for the upcoming 2008-09 academic year. As a result of its favorable past performance and HESAA’s diligence, NJCLASS will once again offer the lowest fixed interest rate supplemental loans in the nation.

“Our priority has always been the student”, said Director Angulo. “Unlike competing loan products, NJCLASS offers a 20-year term and a low fixed rate to help minimize the student’s obligations following graduation. This is extremely helpful as these young adults work to establish themselves.” Specifically, NJCLASS offers the following favorable borrower benefits:

· Low fixed interest rate of 7.62%;

· 20-year repayment term;

· Low origination fee (2% compared to 4% for a Federal PLUS loan and higher for some private sector loans);

· 3 payment options during in-school period including full repayment of principal and interest, deferment of principal, and full deferment of principal and interest;

· Financing flexibility through co-signers in addition to students;

· Comprehensive default aversion and financial literacy counseling;

· Reduction of interest rate during the first four years of repayment; and

· Proactive customer service and “800” hotline with HESAA staff.

“Thanks to the commitment of Governor Corzine and Treasurer Rousseau, we overcame the challenges of a tightening credit market and, as a result, will continue to provide New Jersey students and families access to an affordable education through NJCLASS,” Director Angulo concluded. For more information, please visit www.hesaa.org or call (800) 792-8670.