Borrower and Coborrower Rights & Responsibilities


Once the student's eligibility for the loan is finalized through the school's certification, a Loan Offer Disclosure will be sent to you. We will also send a Loan Offer Disclosure to the cosigner. The loan offer must be accepted within 30 days to continue with the loan process. A Predisbursement Disclosure Statement will be sent to all parties on the loan prior to funding. There is a 3-day right to rescind period that must expire before the loan is funded.

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. 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 any portion of the loan within 60 days from the date of disbursement. Borrowers should have the school return funds on their behalf. 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. 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. 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, co-borrower, cosigner, or joint cosigner 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 by the student to attend the school chosen for the academic period indicated on the NJCLASS Loan Application.