Bill Text: NJ A3947 | 2020-2021 | Regular Session | Introduced
Bill Title: Requires Higher Education Student Assistance Authority to suspend accrual of interest on certain New Jersey College Loans to Assist State Students Loan Program loans in deferment or forbearance.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2020-04-13 - Introduced, Referred to Assembly Higher Education Committee [A3947 Detail]
Download: New_Jersey-2020-A3947-Introduced.html
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
Requires Higher Education Student Assistance Authority to suspend accrual of interest on certain New Jersey College Loans to Assist State Students Loan Program loans in deferment or forbearance.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the suspension of interest under the New Jersey College Loans to Assist State Students Loan Program.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Higher Education Student Assistance Authority shall suspend the accrual of interest on a New Jersey College Loans to Assist State Students Loan Program loan, if the borrower of the loan applies for a loan deferment or loan forbearance due to temporary total disability, unemployment, or financial hardship between March 9, 2020 and September 9, 2020, and is approved for such a loan deferment or loan forbearance.
2. This act shall take effect immediately.
STATEMENT
Under current regulations governing the New Jersey College Loans to Assist State Student (NJCLASS) Loan Program, the Higher Education Student Assistance Authority (HESAA) is permitted to grant NJCLASS loan borrowers deferment or forbearance under certain circumstances in the repayment of NJCLASS loans. During periods of authorized deferment, borrowers may be permitted to defer payments of interest and/or loan principal for specified periods of time. Borrowers, however, remain responsible for the payment of the interest accruing on their loan, except for during approved periods of temporary total disability of the eligible student borrower. Forbearance, meanwhile, may be granted to a borrower for situations including, but not limited to, financial hardship. In granting a forbearance, HESAA permits: 1) a temporary cessation of principal payments and temporarily permits payments of interest only or 2) a temporary cessation of both principal and interest payments. Interest continues to accrue during all forbearance periods.
This bill would require HESAA to suspend the accrual of interest on NJCLASS loans, the borrowers of which apply for a loan deferment or loan forbearance due to temporary total disability, unemployment, or financial hardship between March 9, 2020 and September 9, 2020, and are approved for the loan deferment or loan forbearance.
