What is the difference between refinance and consolidation?

The NJCLASS ReFi⁺ Loan assists borrowers who want to lower the total amount spent on repaying their student loans by combining multiple loans into one single payment with a lower interest rate. The NJCLASS Consolidation Loan is designed to assist borrowers who need lower monthly payments by combining multiple NJCLASS Loans into one single payment over a longer payment term.

ReFi⁺ Loan Program

HESAA is now offering an expanded pilot ReFi⁺ Loan Program for student beneficiaries who have loans from higher interest rate periods. NJCLASS and Private Educational Loans can both be considered for this refinance opportunity. Eligibility for the 10-year and 15-year, fixed rate program is based on income and credit score. Depending on the selected loan term and credit score, the interest rates will range from 3.75% to 5.30%.

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NJCLASS Loan Consolidation

The NJCLASS Consolidation Loan is designed to assist those borrowers with higher NJCLASS debt balances by providing a longer repayment term and lower monthly payments.  A consolidation loan may help make payments more manageable for some borrowers by combining several NJCLASS loans into one loan with one monthly payment.

Borrowers must have a minimum of two NJCLASS loans with an outstanding minimum balance of $30,000. NJCLASS Consolidation loans with balances less than $60,000 carry a 25-year repayment term. NJCLASS Consolidation loans with balances greater than or equal to $60,000 carry a 30-year repayment term. The interest rate on a NJCLASS Consolidation loan is fixed and is based on a weighted average of the underlying NJCLASS loans being consolidated minus 0.50%. Deferment and forbearance options are limited and require monthly interest payments. Consolidation loans are subject to available funding.

Borrowers, who would like to apply for a consolidation loan, should login to start the application process.

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