Bill > A2106

Introduced Session

This bill permits county improvement authorities to establish student loan refinancing programs for certain borrowers. Under the bill, a student-borrower who is a resident of the county, or a parent-borrower who is a New Jersey resident or has his primary employment in the State and who is the obligor on a student loan for a student who is a resident of the county, may apply to refinance that student loan at a lower interest rate. The county improvement authority will set the interest rate and other terms of the student loan refinancing loan, provided that the interest rates charged are sufficient to pay the principal and interest on any bonds issued by the authority to fund its program. The authority is required to provide at least two different types of repayment plans, one of which must provide, to the extent practicable, deferment or forbearance options. The bill stipulates that the authority is not permitted to refinance a student loan if the payments would result in an undue hardship on the borrower, taking into consideration the borrower's current income and expenses. The bill provides that any student loan refinancing loan may not be dischargeable in bankruptcy. The bill also provides that the authority must ensure that a borrower may contact and speak with a live representative of the authority who can access the borrower's loan information and who has knowledge of the student loan refinancing program.

AI Summary

Committee Categories

Lou Greenwald (D)*,  Bill Moen (D)*, 

Introduced, Referred to Assembly Higher Education Committee (on 01/09/2024)

Official Document