Requires annual report on New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to include information on borrower delinquency and administrative wage garnishments.
Impact
The bill mandates that borrowers’ delinquency status be reported based on income levels, in addition to the aggregate statistics currently available. This change is intended to ensure that the HESAA and the legislature can assess the program's effectiveness across various income brackets, making it easier to identify areas where the program may not be adequately serving lower-income students. By implementing more granular data collection, the bill seeks to improve the financial understanding of the program's audience and its impact on families and individuals across New Jersey.
Summary
Senate Bill S3507 aims to enhance the reporting requirements related to the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program. As per the bill, the Higher Education Student Assistance Authority (HESAA) will be required to submit an annual report that provides detailed statistics not only on loans in default but also on loans that are in delinquency. The report will also include information regarding administrative wage garnishments initiated against borrowers, helping to shed light on the overall state of the NJCLASS program.
Contention
While the bill is aimed at improving transparency and accountability within the NJCLASS program, it may face contention regarding the potential implications of increased administrative burdens for HESAA. Furthermore, the requirement for detailed reporting could add layers of complexity to existing processes and might evoke concern among some legislators regarding resource allocation. However, proponents argue that the potential benefits—better assisting students in financial distress and providing clearer data on loan performance—outweigh these challenges.
Requires annual report on New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to include information on borrower delinquency and administrative wage garnishments.
Establishes maximum rate of interest for New Jersey College Loans to Assist State Student Loan Program; establishes protections for private student loan borrowers.
Requires Higher Education Student Assistance Authority to suspend accrual of interest on certain New Jersey College Loans to Assist State Students Loan Program loans in deferment or forbearance.
Permits cosigners to student loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to make payments on loans; allows gross income tax deduction for certain payments under NJCLASS Loan Program.
Permits cosigners to student loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to make payments on loans; allows gross income tax deduction for certain payments under NJCLASS Loan Program.
Requires Higher Education Student Assistance Authority to suspend accrual of interest on certain New Jersey College Loans to Assist State Students Loan Program loans in deferment or forbearance.
Requires Higher Education Student Assistance Authority to suspend accrual of interest on certain New Jersey College Loans to Assist State Students Loan Program loans in deferment or forbearance.
Requires Higher Education Student Assistance Authority to consider combined income of all cosigners on application for participation in New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
Requires Higher Education Student Assistance Authority to consider combined income of all cosigners on application for participation in New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
Requires Higher Education Student Assistance Authority to consider combined income of all cosigners on application for participation in New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
Directs certain unclaimed electric and gas utility deposits in Unclaimed Utility Deposits Trust Fund and societal charge revenues to be paid to Statewide nonprofit energy assistance organizations meeting certain eligibility criteria.