Borrower and Coborrower Rights & Responsibilities
 
HESAA must provide the borrower with a copy of the completed Notice of NJCLASS Repayment Disclosure Statement prior to consummation of the loan. The borrower's signature on the check indicates his/her acceptance of the terms and conditions of the loan. If the school the student attends participates in electronic funds transfer(EFT), funds will be disbursed directly to the institution and credited to the student's account. Accepting EFT payments to the student account indicates his/her acceptance of the terms and conditions of the loan.

The borrower has the right to pay in full or pay more than the required installment amount at any time without penalty. The borrower has the right to examine or receive a copy of the state laws and regulations that govern the NJCLASS Program.

The borrower has the right to cancel the loan within 60 days from the date of disbursement. Any monies returned within 60 days of disbursement will have the administrative fee and accrued interest credited to the loan balance.

The NJCLASS program deducts up to a 3% administrative fee from each disbursement of the approved loan amount for our Fixed Rate Loan. For the NJCLASS 10-year Variable Rate Loan option there is no administrative fee charged. There are no other fees. The borrower must repay the principal and pay the interest under the terms and conditions specified on the Promissory Note and the Disclosure Statement. The borrower must notify HESAA promptly, in writing, if any of the following events occur before the loan is repaid:

  1. The student fails to enroll in the school chosen for the period for which the NJCLASS loan was intended.
  2. The student withdraws or begins attending less than half time.
  3. The student graduates or changes graduation date.
  4. The borrower or coborrower changes his/her name, address, or employer.

The borrower must use the proceeds that he/she receives from the NJCLASS loan for tuition and other reasonable and authorized educational expenses - including room and board, fees, books, supplies, equipment, laboratory expenses and for transportation and commuting costs incurred to attend the school chosen for the academic period indicated on the NJCLASS Loan Application.