New for NJCLASS in 2010!
HESAA is pleased to announce the 2010/11 interest rates for its NJCLASS loans.
|
Fixed Rate Program* - |
|
|---|---|
| Monthly payment of principal and interest - 20-year term | 7.59% |
| Monthly payment of interest while in school – 20 year term | 7.59% |
| Deferred payment while in school and interest capitalization – 20 year term | 7.89% |
| NEW Monthly payment of principal and interest – 10 year term | 5.90% |
|
Graduate/Professional Program* |
|
|---|---|
| Monthly payment of principal and interest - 25 year term | 7.69% |
| Monthly payment of interest while in school – 25 year term | 7.69% |
| Deferred payment while in school and interest capitalization – 25 year term | 7.99% |
|
Medical/Dental Program |
|
|---|---|
| Monthly payment of principal and interest - 25 year term | 8.17% |
| Monthly payment of interest while in school – 25 year term | 8.17% |
| Deferred payment while in school and interest capitalization – 25 year term | 8.47% |
Also, to better assist our students and families, we’ve made some important changes to the program:
(1) Interest-only repayment option –New for 2010! We’ve decided to move our interest only repayment option to a monthly frequency. This feature will allow more families to take advantage of making affordable interest payments while the student is enrolled in school. Making monthly interest payments will help to keep the loan’s principal balance low, making repayment easier than ever!
(2) Ten year repayment term – New for 2010! – We’re offering a new repayment option on our original fixed rate loan. This option gives those borrowers who want a loan but for a shorter duration a great rate! Monthly payments of principal and interest are required and begin within 60 days of disbursement. Why borrow through the Direct PLUS program when you can get a great deal here! NJCLASS allows the student to be the borrower, the interest rate is 2% LESS than the federal PLUS loan with ½ the Origination fees charged by PLUS!!
(3) The NJCLASS Consolidation loan will be available shortly to assist those borrowers with higher debt amounts by offering a longer repayment term with lower monthly payments. The interest rate calculation for a consolidation loan has been changed to include an additional 0.25% to reflect the higher costs of funds associated with the extended repayment term. The NJCLASS Loan application and promissory note are currently being modified to reflect these changes. HESAA will update its website once the NJCLASS Consolidation loan is available for accepting new applications.
* NJCLASS reduces the interest rate during school and for the first 48 monthly payments of principal and interest. This reduction assists borrowers in repaying more principal during these early months when the loan balance is highest. The result is a lower overall cost to the borrower. In the 49th month of principal and interest repayment, your interest rate increases by 0.75% and stays at that rate for the remainder of the loan. This applies to all repayment options in both the Fixed Rate Program and the NJCLASS for Graduate/Professional Students Program.