If you’re a New Jersey student loan borrower, you might have a tough road ahead of you, especially if you borrowed directly from the state, via the New Jersey Higher Education Student Assistance Authority (HESAA).
A New York Times report revealed that HESAA loans come with higher-than-average interest rates, a lack of borrowing caps that could help consumers borrow within reason, and nearly impossible-to-get-out-of terms (even upon sickness or death).
The report quoted bankruptcy lawyer Daniel Frischberg as comparing HESAA’s practices to “state-sanctioned loan sharking” that sets borrowers up to fail. In reaction, state lawmakers held hearings and passed legislation to address some of these issues, including repealing a law that caused attorneys to lose their licenses if they defaulted on their student loans. But even with these strides, critics say that not enough has been done.
There is some good news here, though. Although the state is still working through challenges with its student loan program, New Jersey also offers some repayment assistance programs to help.
If you’re one of the 44.2 million Americans in student loan debt and you happen to live in the Garden State, here’s how you can get help paying off your student loans.
The state of student loan debt in New Jersey
Besides having potential room for improvement on student loans, the state also ranks highly on the cost of in-state tuition. Here are some details on New Jersey student loan debt from the Student Loan Report and 24/7 Wall Street:
- The average debt at graduation is more than $19,000.
- The cost of in-state tuition is among the highest in the nation, beaten by only three other states, also in the Northeast.
- New Jersey has the highest number of students leaving the state for college — in fall of 2016, 27,000 college-bound students went to school out of state.
On the other hand, some New Jersey schools are battling high tuition with programs such as Rutgers’ RU-N to the TOP, which provides free tuition for low-income families.
Resources to help with New Jersey student loans
As for what you can do if you’re one of the many New Jerseyans battling student loans, there are current New Jersey student loan repayment assistance programs you might be able to qualify for.
Nursing Faculty Loan Redemption Program
This program was created to address a shortage of faculty members at nursing schools in the state. Since becoming an educator in nursing requires a graduate degree, this program incentivizes that with tuition pay-back in exchange for five years of full-time work at a nursing school after graduation.
However, the graduate program you attend must be one of the approved programs, such as a master’s degree in nursing (MSN), a doctor of nursing science (DNS), a doctor of nursing practice (DNP), or a Ph.D. in nursing or “another related field of study.” You also need to have maintained a 3.0 GPA in your program.
Once you graduate, you can qualify for the Nursing Faculty Loan Redemption Program if you obtain full-time faculty employment at a nursing school in New Jersey within one year of completing your graduate degree. Payments from this program will be sent to your student loan servicer and max out as follows:
- $5,000 for your first year
- $7,000 for your second year
- $10,000 for your third year
- $13,000 for your fourth year
- $15,000 for your fifth year
- No more than $50,000 is allowed for the entire loan redemption
You can find more information about this program through HESAA. Call them with questions at (609) 584-4480, and apply using HESAA’s form.
Primary Care Physician and Dentist Loan Redemption Program
If you’re a physician, physician assistant, certified nurse practitioner, certified nurse midwife, or dentist working in an underserved community in New Jersey, this program can help you repay your student loans.
Primary Care Physician and Dentist Loan Redemption Program recipients can get student loan redemptions of up to $120,000. The redemption is in exchange for two to four years of service as a primary care provider in areas experiencing a critical shortage of such professionals. To be eligible, you must begin your service in one of these areas within two years of completing your training or residency.
You’re required to work full-time for the first two years. You can then receive an extension by serving either another two years of full-time work, or four years of part-time work.
You can apply using this form from the program. More information is available via HESAA or the program’s website. As of the fall of this year, applicants are being waitlisted due to a high volume of interest in the program.
Your school or your employer
Don’t just look to the state for assistance repaying your student loans — your alma mater and your employer might have programs to help as well.
For example, many law schools offer their own student loan repayment assistance programs. Eligibility for these programs, like the ones above, will depend on where you choose to work. Check out the assistance offered by Rutgers Law School and Seton Hall University School of Law to see what these programs look like. Then check with your school to see if they have anything like it.
As for your workplace, many employers are starting to help their staff with student loan repayment. In January of last year, New Jersey Business reported that boutique law firm Trenk DiPasquale would begin assisting its employees in repaying their student loans as part of the firm’s employee benefits package.
If your employer isn’t yet offering a program like this, consider presenting the idea to your human resources department — not just for you, but also as a recruitment tool for millennials.
Statute of limitations on debt in New Jersey
So what happens if you’re deep in New Jersey student loan debt — and deep in New Jersey student loan default? The statute of limitations on debt in New Jersey could be on your side.
This means that debt in default has a time limit after which it becomes “time-barred.” Once that happens, collectors can still sue you for the debt, but you can use this statute as a defense and potentially win your case.
However, if you make a payment on a debt in default, the clock immediately restarts. That’s not to say that you shouldn’t make an effort to repay your debt — just that doing so clears out any time that has passed in leading up to the statute of limitations so far.
Currently, there’s only a statute of limitation on private student loans. Federal student loans are exempt from this law. As of right now, the statute of limitations on debt in New Jersey is six years.
Don’t stop your search here for New Jersey student loan help
If you don’t work in medicine, or your employer or school don’t offer student loan repayment assistance, don’t lose hope. Although there might not be New Jersey-sponsored programs to help you with your loans, there are other ways to get help.
For example, there are federal student loan forgiveness programs that help teachers, non-profit workers, government employees, and others to obtain forgiveness for their loans. And if you’re struggling to repay and don’t qualify for these programs, you can lower your monthly payments with an income-driven repayment plan and apply for forgiveness after the required number of consecutive payments.
Just keep in mind that most forgiven student loan debt, no matter which of the programs listed in this article you use, are subject to income tax. Prepare yourself so you’re not shocked by a tax bill if your debt is forgiven.
Finally, if you’d like to see your state offer more than it does now, consider reaching out to your elected representatives. You can find out who your senators and representatives are and how to contact them, via GovTrack. It might not seem like a big deal, but the more New Jersey residents who urge change, the more likely real improvements can come to student loan borrowers such as yourself.
Interested in refinancing student loans?Here are the top 7 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.45% APR (with Auto Pay) to 6.99% APR (with Auto Pay). Variable rate loan rates range from 1.81% APR (with Auto Pay) to 6.49% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of November 6, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 11/06/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on our student loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for SoFi.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
ANNUAL PERCENTAGE RATE (“APR”)
There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
ELIGIBILITY & ELIGIBLE LOANS
Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).
Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.
The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.
POSTPONING OR REDUCING PAYMENTS
After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.
We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.
We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.
If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of November 8, 2019 and is subject to change.
4 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 1.9299999999999997% effective October 10, 2019.
6 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 11/07/2019 student loan refinancing rates range from 1.90% to 8.65% Variable APR with AutoPay and 3.49% to 7.75% Fixed APR with AutoPay.
7 Important Disclosures for College Ave.
College Ave Disclosures
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1College Ave Refi Education loans are not currently available to residents of Maine.
2All rates shown include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
4This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 09/23/2019. Variable interest rates may increase after consummation.
|1.81% – 6.49%1||Undergrad & Graduate|
|1.81% – 7.36%2||Undergrad & Graduate|
|1.99% – 6.65%3||Undergrad & Graduate|
|2.43% – 7.60%4||Undergrad & Graduate|
|2.02% – 6.30%5||Undergrad & Graduate|
|1.90% – 8.65%6||Undergrad & Graduate|
|2.74% – 6.24%7||Undergrad & Graduate|