Loan Terms
NJCLASS Loan Term Details:
- Interest begins to accrue from the date the loan is disbursed
- There is no interest subsidy
- The interest rate will increase 0.75% from its initial level beginning with the borrower's fifth year of repaying the loan principal; however the repayment amount will not change
- Deferments do not extend the term of the loan
- The minimum monthly loan repayment is $50
- No prepayment penalty
- The loan is in default when it becomes 180 days delinquent while in repayment of monthly installments or 240 days delinquent if repaid less frequently than monthly
- Delinquencies will adversely affect your ability to borrow in the future
- A student borrower in default on an NJCLASS loan will suspend their state grant eligibility