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  • NJ A4084
  • Requires Higher Education Student Assistance Authority to establish income-driven repayment option and loan rehabilitation program for borrowers under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
Introduced
(9/15/2016)
In Committee
(12/15/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
The bill directs the Higher Education Student Assistance Authority (HESAA) to establish an income-driven repayment option for an NJCLASS Loan Program loan. An income-driven repayment option is a student loan repayment plan that sets a borrower's monthly student loan payment at an amount that is intended to be affordable based on the borrower's income. Under the provisions of the bill, the income-driven repayment option for an NJCLASS Loan Program loan will: (1) limit a borrower's monthly payment amount to no more than 10 percent of discretionary income; (2) discharge any remaining debt after 20 years of payments; and (3) provide $0 monthly payments for borrowers with incomes at or below 150 percent of the federal poverty guideline for their family size. The bill also directs HESAA to establish a loan rehabilitation program for NJCLASS Loan Program loans for the purpose of rehabilitating a defaulted loan and removing it from default status. Under the program, in order to be eligible for rehabilitation of a defaulted loan, the borrower must voluntarily make at least nine of the 10 payments required under a monthly loan rehabilitation repayment agreement entered into with HESAA. All required payments must be made voluntarily, be for the full amount required under the agreement, and be received within 20 days of the due date for the payment. Within 30 days of the successful completion of the loan rehabilitation repayment agreement, HESAA will notify national credit bureaus to which it reported the loan default, that the loan is no longer in default status.
2nd Reading in the Assembly
Reported out of Assembly Committee, 2nd Reading  (on 12/15/2016)
 
 
Date Chamber Action Description
12/15/2016 A Reported out of Assembly Committee, 2nd Reading
12/15/2016 Assembly Appropriations Hearing (13:00 12/15/2016 Committee Room 11, 4th Floor)
10/27/2016 A Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee
10/27/2016 Assembly Higher Education Hearing (10:00 10/27/2016 Committee Room 15, 4th Floor)
9/15/2016 A Introduced, Referred to Assembly Higher Education Committee
Date Motion Yea Nay Other
Detail 12/15/2016 Assembly Appropriations Committee: Reported Favorably 6 3 2
Detail 10/27/2016 Assembly Higher Education Committee: Reported with Amendments 7 0 2