Bill Text: NJ S3033 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires Higher Education Student Assistance Authority to consider combined income of all cosigners on application for participation in New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-04-08 - Introduced in the Senate, Referred to Senate Higher Education Committee [S3033 Detail]
Download: New_Jersey-2024-S3033-Introduced.html
Sponsored by:
Senator VINCENT J. POLISTINA
District 2 (Atlantic)
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Requires Higher Education Student Assistance Authority to consider combined income of all cosigners on application for participation in New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the NJCLASS loan program and amending N.J.S.18A:71C-23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:71C-23 is amended to read as follows:
18A:71C-23. Loans under the NJCLASS Loan Program may be made to eligible borrowers. An eligible borrower is an eligible student or any parent or legal guardian providing financial support for a dependent eligible student. The authority shall set maximum loan amounts for each participant based on such factors as the cost of attending the particular institution, family income, value of family assets or other factors the authority may consider relevant. The loans may be secured by such endorsement, co-maker's collateral or other security as may be required by rules and regulations established by the authority. When considering an application, the authority shall use appropriate documents to verify the financial information provided by an eligible borrower or cosigner. The documents that the authority may use to verify the financial information may include, but need not be limited to, certification by the applicants, recent federal income tax returns, current pay stubs, and current bank statements.
When setting a minimum income requirement to determine the eligibility of a prospective borrower, the authority shall consider the combined incomes of all cosigners on an application.
(cf: P.L.2017, c.198, s.1)
2. This act shall take effect immediately.
STATEMENT
In order to be eligible for a loan under the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program, an applicant is required to meet all the eligibility criteria, including the income requirement, for a loan. Most students, lacking sufficient income to meet this requirement, have one or more cosigners on their application. In some cases, a student who has two parents cosign a loan is ineligible to participate in the NJCLASS loan program because neither parent meets the minimum income requirement, even though their combined income exceeds the requirement. This bill directs the Higher Education Student Assistance Authority, when setting a minimum income requirement to determine the eligibility of a prospective borrower, to consider the combined incomes of all cosigners on an application for participation in the NJCLASS Loan Program.
