Bill > S2573

Introduced 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.

AI Summary

Committee Categories

Sandra Cunningham (D)*,  Robert Gordon (D)*,  Bob Singer (R)*,  Nilsa Cruz-Perez (D),  Patrick Diegnan (D),  Linda Greenstein (D),  Nellie Pou (D),  Teresa Ruiz (D),  Brian Stack (D), 

Reported out of Assembly Committee, 2nd Reading (on 12/15/2016)