Frequently Asked Questions - NJCLASS Consolidation Loans

How do I print the application and promissory note?
I'm having trouble printing / troubleshooting a printing problem
I've got a recent version of Adobe Acrobat Reader but it's not recognized
Printing error messages

How is the interest rate determined?
What is the Truth in Lending Act (TILA)?
What does Usury Interest Rate mean?
What is a "Loan Offer" and why must I accept my loan within 30 days?
What is the purpose of the three day right to rescind and how will it affect my loan?
What is an APR?
What is a pre-paid finance charge?
What is the amount financed?
What is the initial finance charge?
What is a "Private Education Loan" ?
What is Title IV aid?
What loans can I include in this consolidation?

Iím the borrower on all of my loans, but I donít meet the income or credit criteria. What should I do?
What kinds of deferments or forbearances are available in this consolidation loan?
Iím a parent-borrower with loans for several children. Can I consolidate them all together into a single loan?
Can I consolidate my loans with my spouseís into a single loan, even if we did not originally borrow together?
Iím repaying my loans now, but Iím still in school. Why do I have to wait to consolidate?
Iím delinquent on my outstanding NJCLASS loans. Am I still eligible?
I donít see all of my NJCLASS loans. Why not?
Iím the borrower, I want to add a cosigner. Is it still possible for me to get the loan?
I already have a cosigner, and the processing result is that I need to add a new cosigner. How do I add a new cosigner?

Iím the cosigner, and the application was NOT pre-approved. Iíd like to add my spouse (or another person) as a joint cosigner. How do I do this?

Can I fax my signed application to you?
What's the difference between Co-borrower and Cosigner ?
Is a Cosigner always required ?
Is a Co-borrower always required ?
Can the same person be Co-borrower AND Cosigner?
User ID problem or lost password
Am I eligibile for NJCLASS Consolidation?
Other questions? How to contact us.

How do I print my application and promissory note?

To print, You may see some messages asking if you want to allow it (depending on your browser settings). Once you respond, the loan application will be displayed in a separate window to be printed.

You may get both a blank screen and the form with your data. Move the blank screen aside to get to the form that you want to print.

You must disable any pop-up blocking software in order to have the form appear.

The Co-borrower, Cosigner or Joint Cosigner can also print, substitute the respective SSN and role in the instructions above.

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Iím having trouble printing. What should I do to troubleshoot and resolve the problem?

Reminders:

If you are still unable to print after having upgraded to the newest version of Adobe and reviewing the printing questions above, please contact us for help. Be sure to include your application reference number if you are sending us an email.

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I've got a recent version of Adobe Acrobat Reader but it's not recognized

If you've got an older version of Adobe Acrobat Reader installed in addition to a newer version, sometimes this problem will occur. It also may occur if you installed a new version (e.g.) 7.0.x and then un-installed an earlier version (e.g. 6.0.1). To resolve this issue, un-install the older version of Adobe Acrobat Reader first, then install Adobe Acrobat Reader's most recent version. For more information please visit Adobe's website (support section) and read the information they've provided about coexisting installations and/or version interoperability.

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When I try to print, I get an error that says "file is damaged and cannot be repaired" what should I do?

Please make sure you're using a newer version of Adobe Acrobat Reader (at least 8.0, preferably 9.0). If you need to upgrade please go to www.adobe.com. Also, if you are using a slow internet connection, you may experience difficulty.

We recommend using Internet Explorer 9.0+ to complete your application. If you are not sure, please go to www.microsoft.com to check for updates or to upgrade.

If you are still unable to print after having checked your software and reviewing the printing questions above, please contact us for help.

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How do I get a user ID and password ?

To register, follow these steps:

  1. Click "New User? Please register"
  2. Create your user id profile, and choose your login/user ID and a password. You will also be asked for a challenge question to answer in case you forget your password. When finished, click the save button.
  3. Return to login page and enter your login/user id and password. Click on the red arrows to continue.

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I forgot my password

Enter your user ID and click "Lost Password". You will be prompted for your challenge question and then you can reset the password.

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I got an error that said the user ID already exists. What should I do?

If you press the "Save" button twice (while waiting for a response) or accidentally double click on it, you may see this message. Your user ID will be created with the first press of the "Save" button, so the second click during the save process causes this error to be displayed. If you believe this is the case, please try to log in with the user ID and password you created.

If you are sure you only pressed "Save" one time, then the user ID may have been chosen by a different person. Please choose a different ID and try again. If you are still having difficulty, please contact us.

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Other Login/User ID and Password issues:

We recommend using Internet Explorer 9.0+ to access the system.

If you have tried two times and received the invalid password message, enter the user ID and then click "lost password". At that point, if your ID is valid, you will be prompted to answer your challenge question that was set up during registration time. Please respond to the challenge question. When you successfully answer the challenge question, you will be prompted to reset the password for your account.

If you are still having trouble, please contact us.

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Iím confused about the terms "Co-borrower" and "Cosigner". Whatís the difference?

A Co-borrower is an additional Borrower whose income contributes to qualifying for the loan and who, along with the Borrower, is jointly and primarily responsible for repaying the debt. Co-borrowers are responsible for the entire amount of the loan, regardless of their obligation to the original, underlying loans that are being consolidated. Please read the Loan Terms and Conditions for additional information.

A Cosigner guarantees payment of a debt. Borrowers who do not meet the income and/or credit requirements will be required to have an eligible Cosigner. Please read the Loan Terms and Conditions for additional information.

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Is a Cosigner always required?

No. If the Borrower meets both the income and credit requirements, then a Cosigner is optional.

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Is a Co-borrower required?

No. The Co-borrower is optional.

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Is a Joint Cosigner required?

No. The Joint Cosigner is optional.

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Can the same person be both Co-borrower AND Cosigner?

No. Each party to the application can only have one role. Please refer to the questions above for additional information.

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Will I get my results faster if I fax my application documents to you?

No. Please DO NOT fax the information, send it by mail.

We must have your original

in order to complete the processing of your loan.

Faxing documents or mailing things piecemeal will only increase the amount of time it takes to review and process your loan application. Mailing all of the documentation in one envelope will help us to process your loan application most efficiently.

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Am I eligible for a NJCLASS Loan?

Eligibility information can be found here.

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How is the interest rate determined?

The rate used to calculate interest will be a weighted average interest rate of the underlying NJCLASS loans being consolidated plus 0.25%. The weighted interest rate for a fixed rate loan is based upon the remaining number of payment dates of the loan and excludes any interest rate benefit reduction or payment arrangement.

    We also make the following rate adjustments:

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Are there any fees for applying and receiving a NJCLASS loan?

The only fee charged is the Loan Administration Fee, which is 1% of the approved loan amount. This fee is added to the loan prior to disbursement. Although HESAA does not currently charge these fees, HESAA reserves the right to charge a late fee of up to 6% of the payment amount and a customary handling charge for returned payments.

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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 arrangement 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.

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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.

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What is a "Loan Offer" and why must I accept my loan within 30 days?

After we complete our review of your application documents, we are ready to offer you the loan.
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.

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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, youíll need to reapply. There is no guarantee that the terms and conditions of the original offer will be available if you reapply.

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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.

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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.

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What is the amount financed?

The Amount Financed is the loan amount applied for less any pre-paid finance charges. For example, if the borrowerís loan is for $10,000 and the pre-paid finance charges are $200, the amount financed would be $9800.

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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.

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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.

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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.

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What loans can I include in this consolidation?

You can combine all of your NJCLASS loans, including the variable rate and fixed rate program loans. You may not include other educational debt, such as federal Stafford loans, Perkins loans, or other loans from other alternative loan providers.

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Iím the borrower on all of my loans, but I donít meet the income or credit criteria. What should I do?

You can ask someone to cosign the loan for you. The application will be considered using the cosignerís income and creditworthiness. We will ask you about the cosigner during the credit application process. If you will have a cosigner, answer YES to that question.

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What kinds of deferments or forbearances are available in this consolidation loan?

If you are experiencing financial difficulties, and you canít make your monthly payment, you should contact our Servicing Department immediately at 1-800-792-8670. We may be able to temporarily reduce your payment amount on your loan. There are no provisions for a full deferment of principal and interest. Obtaining a forbearance will not extend the repayment term for the consolidation loan.

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Iím a parent-borrower with loans for several children. Can I consolidate them all together into a single loan?

Yes, you can do this if you were the original borrower on the loans. Each student must be out of school (either graduated or withdrawn) for their loans to be eligible for consolidation. Otherwise, you may want to wait until your last student graduates.

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Can I consolidate my loans with my spouseís into a single loan, even if we did not originally borrow together?

Yes, you can do this, although we donít recommend it. NJCLASS loans have no provision for cancellation due to disability or death of one of the borrowers. Nor can they be separated in the event of a divorce. You will be responsible for the entire consolidation loan debt, regardless of your obligation to the original, underlying loans.

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Iím repaying my loans now, but Iím still in school. Why do I have to wait to consolidate?

You want to be sure that you wonít need additional NJCLASS loans after you consolidate. The best way to ensure that is to be out of school. Additionally, there are very limited forbearances and no deferments available once you consolidate. HESAA understands that most students cannot afford to make regular monthly payments while attending school, and that sometimes graduates do not find immediate employment. Because NJCLASS loans do allow deferments while the student is enrolled, we want you to have this option available if you need it. Once you are ready for consistent monthly repayment of the principal and interest of your NJCLASS loans, you should consider the consolidation option.

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Iím delinquent on my outstanding NJCLASS loans. Am I still eligible?

You may still be eligible. Consolidating your NJCLASS loans will give you a lower monthly payment by extending the repayment term. We understand that this may help you resolve your delinquency and avoid it in the future. Contact the NJCLASS servicing department at 1-800-792-8670, option 5 from the main menu. Once your account is current, you will be able to apply. Keep in mind that you may need a cosigner, depending on your overall credit history.

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I donít see all of my NJCLASS loans. Why not?

There may be two reasons why this occurs:
  1. The loan is in deferment (either quarterly interest, or full deferment status). If you have loans in deferment and want to consolidate them, you will need to contact the servicing department to have them converted to repayment status. Students must be out of school (either graduated or withdrawn) before their loans can be consolidated. Even if your loans are in repayment, and you are still in school, you cannot consolidate.
  2. Loans are displayed by the primary borrowerís SSN. If you are not the primary borrower on a loan, it will not be displayed on your list. You can add these loans by entering the SSN of the primary borrower and loan number. Keep in mind that you must be either the borrower or coborrower of that loan for it to be considered in your consolidation. Cosigners to underlying loans cannot assume the debt of other borrowers.
  3. You may be trying to include an existing NJCLASS consolidation loan. Existing NJCLASS consolidation loans cannot be included in a new consolidation loan application.

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Iím the borrower, and the processing result is that I can add a cosigner. How do I add a new cosigner?

Yes, you can continue the application process by adding the cosigner. Log into the application as the borrower and select the option to add a new cosigner. The cosigner can then log into your application using the Loan Reference Number assigned to your application. Once they submit all of their information, the application will be reconsidered using their income and creditworthiness.

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I already have a cosigner, and the processing result is that I need to add a new cosigner. How do I add a new cosigner?

You can do this directly from the results page at the time the processing result is displayed. Alternatively, you can select the option to add a new cosigner from the list of choices given at the beginning of the application. Youíll need the Loan Reference number that was assigned to your application and the borrowerís SSN. After youíve completed these steps, youíll want to notify your cosigner that they can provide their information. The cosigner can then log into your application using the Loan Reference number assigned to your application and their SSN. Once they submit all of their information, the application will be reconsidered using their income and creditworthiness.

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Iím the cosigner, and the application was not preapproved. Iíd like to add my spouse (or another person) as a joint cosigner. How do I do this?

After the borrower logs in and selects "add a new cosigner" you will be able to re enter both your information and answer the question "Will there be a joint cosigner" as YES. Once your page is complete, the joint cosigner information may be added. When both pages are complete, and youíve pressed the ďsubmit and continueĒ button, the application will be reprocessed using both cosignersí information.

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Other questions? Contact us.

Before you call, please see if your question has been answered in the Frequently Asked Questions above, and check the Things You Should Know section for definitions and other information.

Phone 800-792-8670

Please include your loan application reference number with all correspondence.
To email or to send regular mail to Client Services: Contact Us.
Select the contact method "E-mail Addresses" from the drop-down box to get to an email form.

If you are contacting us about a printing problem, please tell us what browser (Internet Explorer, Chrome, Safari, Firefox, etc.) & version you're using, and what version of Adobe you have.