Administrative Fee: This is an amount deducted from the proceeds paid to the borrower, not to exceed 5% of the approved loan amount. The Pre-Disbursement Disclosure specifies the amount of the Administrative Fee deducted from the loan proceeds.

Approved Loan Amount: This will be the lesser of: the borrower requested amount, the amount the school certifies the student is eligible for, or the amount HESAA determines, as set forth in the Pre-disbursement Disclosure.

Assignment: I shall not assign my obligation under this Note.

Bankruptcy: This loan is an educational loan made by a governmental unit, and is subject to the exception to discharge of 11 U.S.C. §523(a)) ((8). This means that even if I complete a bankruptcy proceeding my obligation to pay this Note may remain.

Cancellation: The borrower has the right to cancel the loan within the 3-Day Right to Rescind period as disclosed on the Pre Disbursement Disclosure Statement.

Collection Costs: If I am in Default, I agree to pay all amounts, including reasonable collection agency and attorneys' fees of up to 30% of the debt owed and court and other collection costs that you incur in effecting collection of this Note, up to the maximum permitted by law.

Credit Bureau Reporting: You may report information about my account to credit bureaus. Late payments, missed payments, or other defaults on my account may be reflected in my credit report. If I ask you, you will tell me if you have requested information about me from a consumer-reporting agency and provide me with the name and address of any agency that furnished you with a report. I am aware that if I believe you have reported inaccurate information concerning my NJCLASS loan to a consumer credit reporting agency, or if I believe I have been the victim of identity theft with regard to my NJCLASS loan, I can send a letter to HESAA Servicing, PO Box 543, Trenton, NJ 08625-0543, or at the updated address which you may provide to me at a later time on my billing statement or correspondence. My letter will include my name, address, telephone number, my NJCLASS loan number, the specific information that I am disputing and an explanation of the basis for my dispute, and all supporting documentation or other information in order to substantiate the basis of my dispute.

Death or Disability: Upon notification and submission of adequate proof in accordance with N.J.A.C. 9A:10-6.17, this obligation is cancelled in the event of the borrower's death or total/permanent disability.

Default: To the extent permitted by law, I will be in default and you may declare, without notice or demand, the entire unpaid amount of this Note, including principal, interest, late charges, reasonable collection costs and all other costs, immediately due and payable if I:

A. Fail to make any payment to you when due and HESAA reasonably concludes that I no longer intend to honor my obligation;
B. Make an assignment for the benefit of creditors, have voluntary or involuntary bankruptcy proceedings instituted by or against me, am adjudicated incompetent or incapacitated;
C. Make any statement or representation on the application and/or supporting documents for the Loan, or in any subsequent communication with you that is untrue, incorrect, or incomplete;
D. Fail to perform any agreement or keep any promise contained in this Note; or
E. Am in default on any other loans that I may already have with you, or on any other loans I may have with you in the future.

Acceptance by HESAA of any payment, in whole or in part, of the amounts in arrears will not waive or affect any prior acceleration of this Note. HESAA may delay or fail to exercise or waive any of its rights on any occasion without losing its entitlement to exercise the right at any future time or on any future occasion. I waive presentment, demand, notice, protest and other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note. If I default, I will be required to pay interest on this loan accruing after default. All past due interest may, to the extent permitted by law, be capitalized and henceforth treated as part of the outstanding principal balance.

Deferments: I understand that NJCLASS loans are not subsidized and will continue to accrue interest, even while in Deferment, except in the case of temporary total disability of the student borrower.
(In-school): Only borrowers who select the interest-only payment option or the principal and interest payment deferral option are eligible for an in-school deferment while enrolled in school. To remain eligible for deferment status during the period allowed, I must be enrolled in an accredited educational institution on a full-time or half-time basis and must continue making satisfactory progress towards a degree. Deferred loans will automatically convert to monthly repayment of principal and interest when HESAA is notified of my graduation; withdrawal; or less than half-time enrollment.
(Discretionary): HESAA, at its option, may grant a deferment of principal payments in cases when the borrower is (a) currently unemployed and is conscientiously seeking but unable to find full-time employment, (b) enrolled in an eligible internship or residency program required by a state prior to certification for professional practice or service, (c) on active duty status in the Armed Forces, (d) in the Peace Corps, or (e) on temporary total disability. At HESAA's sole discretion, monthly interest payments may be deferred. Eligible student borrowers who are approved for a deferment due to temporary total disability shall be granted a deferment of payment of loan principal, and interest shall not accrue during the period of deferment.

Disbursement: This is the transfer of funds after the loan approval date by electronic means or by check. HESAA shall disburse loans in one or multiple disbursements as determined by the school. My payment obligation on this Note begins on the date the loan is disbursed.

Disclosure Statement: The borrower will be provided a copy of the Pre-disbursement Disclosure detailing the interest rate for this Note, the amount of the payment, the number of payments that must be made and other terms and conditions. If any information on the Pre-disbursement Disclosure conflicts with the information on this Note, the information on the Pre-disbursement Disclosure governs.

Forbearance: I understand that NJCLASS loans are not subsidized and will continue to accrue interest, even while in Forbearance.
HESAA may, at its discretion, grant the borrower periods of forbearance in the repayment of this Note. Forbearance may be granted for situations including, but not limited to, financial hardship. While on forbearance, a borrower is permitted a temporary cessation of principal payment and is temporarily permitted to make payments of interest only. I agree not to claim any forbearance you grant as a defense to repayment of this loan. At HESAA's sole discretion, monthly interest payments may be deferred.

Interest: The interest on this loan is a fixed rate. Interest is not subsidized, and will accrue during all periods of repayment, deferment and forbearance, except for during approved periods of temporary total disability. Interest shall accrue daily on the unpaid principal balance at the rates stated on the Pre-disbursement Disclosure from the date of the initial loan disbursement until the date this Note is paid in full. Interest will be calculated on the basis of the actual number of days in the year and the actual number of days elapsed, including holidays and days on which you are not open. If you authorize Forbearance as to interest, you may add all such interest to the principal balance of the loan at the end of the Forbearance Period. Loans that originate with in-school full deferment of principal and interest carry a higher interest rate for the life of the loan than the other repayment options, as specified on the Pre-Disbursement Disclosure statement.

Late Payment and Other Charges: HESAA reserves the right to collect from the borrower a late charge, not to exceed 6% of the required payment, if the borrower fails to pay part or all of a required payment within ten (10) days after a payment is due. HESAA reserves the right to also collect a handling charge for each payment on this Note returned for any reason, including but not limited to insufficient funds or stop payment order.

Loan Limits: Student beneficiaries first applying for a NJCLASS loan on or after August 8, 2017 will be subject to a loan limit. This is an aggregate per student loan limit, which will be increased annually for each academic year over the prior year by the regression-based index value of the Higher Education Price Index. The loan limit does not apply to students who have previously received NJCLASS loans prior to August 8, 2017 or who applied for their current loans prior to August 8, 2017.

Minimum Payment: The minimum acceptable monthly principal and interest payment shall be the amount required to fully repay the loan within the maximum repayment period, and shall not be less than $50 per loan, or upon request, not less than $50 per borrower for all of that borrower's NJCLASS loans. The minimum acceptable monthly interest payment shall be the greater of the amount of interest accrued, or $10 per loan.

Modification: HESAA reserves the right to amend any terms, conditions, and/or definitions upon written notice to the borrower.

Repayment: I am responsible for repaying the entire Approved Loan Amount and also the interest for this loan in a timely manner within a period of 25 years (including authorized deferment/forbearance periods). Authorized periods of deferment or forbearance do not extend the term. (Option 1) Monthly Repayment: repayment of principal and interest begins within 60 days after the initial disbursement. (Option 2) Monthly Interest Only: repayment of principal is deferred until graduation, withdrawal, or notification of less than half-time enrollment, and monthly payment of interest is required while in deferment. At the expiration of the deferment, monthly principal and interest payments are required. (Option 3) Deferment: repayment of principal and interest is deferred until graduation, withdrawal, or notification of less than half-time enrollment and the interest is capitalized annually while in deferment. At the expiration of the deferment, monthly principal and interest payments are required.
I am not relieved of my responsibility and obligation to make such payments even if I do not receive billing statements or any other written notices from you. Payments will be applied first to unpaid interest and then to unpaid principal and then to unpaid costs and finally to unpaid fees, as permitted by applicable law. If in full deferment, payments made during deferment will be applied first to unpaid principal and then to unpaid interest and then to unpaid costs and finally to unpaid fees, as permitted by applicable law. I may, at my option and without penalty, prepay all or any part of this Note at any time; however, any partial prepayment will not relieve me of my obligation to make regular monthly payments until this Note is paid in full. Since interest accrues daily upon the unpaid principal loan balance, if I make payments after my payment due dates, I may owe unpaid principal, unpaid interest, unpaid costs and unpaid fees, which are due and payable upon maturity of this Note.

Repayment Assistance Program (RAP): This program provides payment relief when all parties to the loan are facing financial hardship. Subject to the availability of funds, for a time period not to exceed two years (730 days), the monthly payment amount on an eligible NJCLASS loan(s) shall be reduced to 10% of the total of the household income of all of the parties to the loan that exceeds 150% of the federal poverty guideline for their family size, with a minimum monthly payment of $5. Interest that accrues during the RAP period will be paid by HESAA. All other payments shall be applied to reduce principal. This program is available for loan applications received on or after June 1, 2017.

School Certification: A student must file a FAFSA to have their eligibility for federal student aid determined. The school must deduct the student’s eligibility for all available aid including federal direct unsubsidized loans from the total cost of attendance to calculate the NJCLASS loan amount.

Student Beneficiary is defined as the student whose education is being financed by this NJCLASS for Graduate/Professional Students Loan.

Student Borrower is defined as the person whose education is being financed by this NJCLASS for Graduate/Professional Students Loan and who accepted this loan as the "Borrower" on the Promissory Note.

Temporarily Totally Disabled means that the student borrower is unable to work and earn money or attend school during the period needed to recover from the injury or illness.

Totally and Permanently Disabled means the condition of a borrower who is unable to work and earn money or attend school because of an injury or illness that is expected to continue indefinitely or result in death.

Transfer of Promissory Note: This Note may be transferred to a holder other than HESAA. Such transfer shall not affect the rights and responsibilities of the parties as set forth. This Note is not intended to be a negotiable instrument and a subsequent holder of this Note cannot be a holder in due course.

Governing Law: The provisions of this Note shall be governed in all respects by applicable federal law, and the laws of the State of New Jersey without regard to conflict of law rules.

Miscellaneous: (A) My responsibility for paying this Note is unaffected by any other party's liability to you or me or by your failure to notify me that a required payment has not been made. (B) Should any provision of this Note be held invalid or unenforceable, in whole or in part, such provision (or part of such provision) shall be deemed omitted from this Note, and the validity and enforceability of the remaining provisions of this Note shall not be affected thereby. (C) I understand that if I provide HESAA with my cell phone number, the number for any other wireless device or any service for which the called party is charged for the call at any time I am providing HESAA and their agents and contractors with express written consent to contact me on that number, both directly and with automatic dialing systems, by human operators and/or artificial or prerecorded voice or text messages with regards to the status of my application, award, or account for HESAA grant, scholarship, college savings, loan or any other program administered by HESAA. I understand that my consent is not a condition of purchase of any good or service, or a condition of eligibility for, or receipt of, funding under any of above mention HESAA programs.
I will send written notice to you within 10 days after any change in my name, address, or telephone number and my failure to do so shall not affect my obligations to repay this loan in accordance with its terms. Any notice required to be given to me by HESAA will be considered effective when mailed to the latest address that HESAA has for me, unless I select to receive notices electronically, in which case notice is considered effective when emailed to the latest email address HESAA has for me. I must notify you or your agent(s) in writing of information changes to my application and I must update the information on my Note whenever asked to do so.

Statement of the Military Annual Percentage Rate ("MAPR"): Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account).