TRENTON, NJ – The New Jersey Higher Education Student Assistance Authority (HESAA) proudly announces substantial reductions in student loan interest rates for New Jersey students and parents borrowing to finance a higher education.
As it does each year, HESAA worked successfully with individual and institutional investors to finance the New Jersey College Loans to Assist State Students (NJCLASS) program. The most recent bond sale raised $180 million and is structured to generate significant savings for NJCLASS borrowers.
The 10-year loan rate has been lowered from 5.99% to 4.99%/APR 6.04%; the 15-year loan from 6.95% to 6.20%/APR 7.23%; and the 20-year from 8.40% to 7.85%/APR 8.93%. The 10-year variable rate loan is currently 4.51% APR. “HESAA is committed to providing New Jersey students and parents with financing at the lowest possible cost,” said Governor Chris Christie. “These new NJCLASS rates are welcome news to New Jersey students and families who aspire to a quality education leading to a successful career.”
NJCLASS pays for educational costs not already covered by grants, scholarships or other loans. “For many students, NJCLASS loans fill the gap between State and Federal financial aid grants and scholarships and remaining costs,” said HESAA Executive Director Gabrielle Charette. “Borrowers who have already applied for an NJCLASS loan at last year's rates will receive the benefit of the new lower rates, provided the funds are not disbursed before June 10, 2015.”
NJCLASS compares favorably to the Federal PLUS Loan for parents and graduate or professional students, which has a fixed interest rate of 6.84%/7.85% APR. Further, NJCLASS carries a lower administrative fee of 3%, compared to a similar fee with the Federal PLUS Loan, which is currently 4.292%.
NJCLASS borrowers can choose from a variety of repayment options, including immediate repayment of principal and interest; interest only during the in-school period; and full deferral of interest and principal during the in-school period. Eligible borrowers include New Jersey residents attending college in or out of state, and out-of-state students attending college in New Jersey.
For further information and to apply online for an NJCLASS loan, please visit www.njclass.org.
HESAA is the only state agency with the sole mission of providing students and families with the informational and financial resources necessary to attain a higher education. HESAA administers the Tuition Aid Grant (TAG); Part-time TAG for County College Students Program; Part-Time TAG for EOF Students Program; New Jersey Student Tuition Assistance Reward Scholarship (NJSTARS and NJ STARS II); the NJ – Governor’s Industry Vocations Scholarship for Women and Minorities (NJ – GIVS); the New Jersey World Trade Center Scholarship; Survivor Tuition Benefits Program; the Law Enforcement Officer Memorial Scholarship; and the Governor’s Urban Scholarship Program. The Authority also manages the State-sponsored 529 College Savings Plan, the New Jersey Better Education Savings Trust (NJBEST). To learn more about HESAA's programs, visit www.hesaa.org.