Bill Text: NJ S2510 | 2016-2017 | Regular Session | Introduced

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Bill Title: Requires Higher Education Student Assistance Authority to obtain court order prior to using certain collection practices for defaulted loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Engrossed - Dead) 2016-10-20 - Received in the Assembly, Referred to Assembly Higher Education Committee [S2510 Detail]

Download: New_Jersey-2016-S2510-Introduced.html

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SENATE, No. 2510

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED SEPTEMBER 12, 2016

 

 

Sponsored by:

Senator  SANDRA B. CUNNINGHAM

District 31 (Hudson)

Senator  THOMAS H. KEAN, JR.

District 21 (Morris, Somerset and Union)

Senator  M. TERESA RUIZ

District 29 (Essex)

 

 

 

 

SYNOPSIS

     Requires Higher Education Student Assistance Authority to obtain court order prior to using certain collection practices for defaulted loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program and amending N.J.S.18A:71C-29.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    N.J.S.18A:71C-29 is amended to read as follows:

     18A:71C-29.  a. Unless expressly limited to federal programs, the information exchange, wage withholding, collection procedures, repayment determinations, and other provisions set forth under article 1 of this part shall apply to the NJCLASS Loan Program.

     b.    Notwithstanding any provision of law to the contrary, in the case of any NJCLASS loan in default status, the authority shall obtain a court order prior to pursuing any of the following collection efforts: offsetting a State income tax refund or State lottery prize winnings; initiating wage garnishment; or suspending an occupational and professional license.

(cf:  N.J.S.18A:71C-29)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     Under current law, the Higher Education Student Assistance Authority (HESAA) may pursue, without a court order, a variety of means to collect on a defaulted student loan made pursuant to the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.  This bill would require HESAA to obtain a court order prior to pursuing the following collection efforts on a defaulted NJCLASS loan: offsetting a State income tax refund or State lottery prize winnings; initiating wage garnishment; or suspending an occupational or professional license.