HESAA Announces No Increase for NJCLASS Family Loan Rates for Academic Year 2017-2018
Trenton, NJ – The NJ Higher Education Student Assistance Authority (HESAA) today announced interest rates for the NJCLASS family loan program for the 2017-18 academic year will remain level.
Each year, HESAA finances bonds to fund the NJCLASS family loan program. Despite the fact that the Federal Reserve has increased interest rates twice in the past year, NJCLASS interest rates will not change for the 2017-18 academic year. New Jersey college-bound students can now apply for NJCLASS loans which have the same starting fixed rates as offered for the 2016-17 academic year: 4.48 percent (5.66 percent APR) for a 10-year loan; 5.19 percent (6.10 percent APR) for a 15-year loan; and 7.15 percent (8.23 percent APR) for a 20-year loan.
Historically, the NJCLASS family loan program has been most often compared to the 10-year Federal PLUS program. While the Federal PLUS rate for the July 2017 – June 2018 period has increased nearly three-quarters of one percent to 7 percent, the starting rate for the 10-year NJCLASS loan will remain at 4.48 percent for another academic year. This lower rate alone will save New Jersey students and their families hundreds of thousands of dollars this year – and millions over the life of the loans.
HESAA is also pleased to report that, for the first time ever, NJCLASS bond ratings have been awarded the coveted Aaa rating from Moody’s. This year’s solid AAA rating is due, in part, to the low number of borrower delinquencies and defaults for those families with NJCLASS loans. Other factors include the fact that NJCLASS loans only cover the expected family contribution and require a creditworthy cosigner, school certification and satisfactory academic progress from each student.
In addition to maintaining its competitive rates, HESAA introduced two new benefits for the 2017-2018 academic year: the forgiveness of all loans in the event of the death or total and permanent disability of the student and the newly introduced Repayment Assistance Program designed to assist families who experience a significant change in financial circumstances. Financing these benefits into the program without increasing rates is just one more example of how HESAA remains committed to serving the students and families of the State.
For more information on rates or to learn more about NJCLASS, CLICK HERE.