Note: To contact HESAA or for inquiries about your NJ Class Loan, visit the HESAA Web site.
What is a New Jersey Class Loan?
New Jersey Class Loans are offered through the New Jersey Higher Education Student Assistance Authority (NJHESAA). U.S. citizens or eligible non-citizens who reside in New Jersey or attend a New Jersey school can apply for this loan.
How much can I borrow?
At least $500, but not more than the student's estimated cost of attendance minus the student's estimated financial assistance for the academic period. The maximum amount of this loan is also contingent upon a 40% debt to income ratio. The borrower's monthly payments against debts cannot exceed 40% of his or her monthly gross income. These payments include home mortgages, rent, bank loans, credit cards, financial companies, department store credit, alimony, child support, and maintenance payments (excluding utility bills).
What are the interest rates?
The interest rate for the 2008-2009 academic year is a fixed rate of 7.62% (so long as interest or principal payments are being made -- options 1 and 2), with a 2% lender fee. That's $20.00 for every $1,000 of loan funds immediately deducted from the disbursement of the funds.
When are the payments due?
You can immediately begin repayment of either principal and interest, you can defer the repayment of the principal and make interest payments on a quarterly basis, or you can be charged a higher interest rate and defer interest and principal payments until the student graduates. You have 20 years to repay the loan.
How do I apply?
- File the FAFSA. Your eligibility for Stafford loans (see above) must be determined before you apply for a NJCLASS loan.
- Apply online by going to www.hesaa.org.
Want to do a direct comparison of New Jersey Class loans and Federal PLUS loans? Check our comparison chart.
