NJCLASS Student Loans Explained

Established in 1990, NJCLASS student loans are especially for students who are residents of New Jersey, whether or not they are attending a school in New Jersey. NJCLASS loans are also for students who are attending school in New Jersey but are not residents of the state. Unlike most other student loans, the NJCLASS loan has features that can help students pay the funds back efficiently, even before leaving school.

Who Can Receive NJCLASS Loans

Students who receive NJCLASS loans get financial coverage for school that isn't already covered by their existing grants, scholarships and loans. The Standard NJCLASS loan is for students pursuing their undergraduate degrees, but there are also NJCLASS loan options for students who are professionals entering a graduate program.

How NJCLASS Loans Work

NJCLASS supplemental loans have helped a number of students attend school and pursue their professional goals. There are several repayment options, which means that students can settle the terms of the loans in a way that is budget-friendly. You can even start prepaying on the loan without incurring a penalty, the student is the actual borrower. An instant credit decision is made on the loan, so students don't have to wait long to find out how the NJCLASS student loan can help them fund their education. Low fees come with most repayment options as well, which can take some of the hassle out of satisfying a student loan balance after graduation.

What NJCLASS Loans Cover

The NJCLASS student loan can cover the cost of books and equipment for class, and can even serve to cover a student's living expenses on or off campus. Students can study abroad using the NJCLASS student loan, and of course, the loan can go toward school tuition and fees as well. NJCLASS consolidation loans are also available.

Apply Today!

Students interested in the NJCLASS student loan can apply online here and get information on loan features and interest rates. Payments can be made online as well.

For More information on how the NJCLASS can help you secure your academic future, feel free to browse through our blog for more details on how you can fund your education in New Jersey.

8 Ways To Conquer your Student Debt

Do you feel like you aren’t making progress conquering your student debt? Are you tired of having to cut back on things you love in order to be able to make your student loan payments? The Federal Reserve Board Survey of Consumer Finances reports that the average graduate ends up with a massive $40,000 loan debt.

It’s easy to feel overwhelmed by having to deal with the same student loan debt payment every month – you see a couple hundred bucks disappear from your checking account month after month, but don’t see your balance due diminishing much. It doesn’t have to be that way, though. By exercising a bit of creativity, you can reduce your debt faster without resorting to eating ramen noodles at every meal.

Of course, the best way to handle student debt is to make smart choices about how you will fund your education from the start. For example, New Jersey students can get student loan information from the Higher Education Student Assistance Authority (HESAA), such as supplemental loans like the New Jersey College Loans to Assist State Students (NJCLASS) for college expenses not covered by other sources of loans, scholarships and grants.

The following are some unconventional strategies you can use to conquer your student loan debt:

1. Do some good. If you enjoy helping others, you can have your student loans forgiven by choosing a career in public service. The Public Service Student Loan Forgiveness Program (PSLF) may help you wipe away your Federal Student Loan debt. Military, non-profit, law enforcement, public health, public school administration, or government jobs may qualify you for debt forgiveness.
2. Let your employer foot the bill. Many employers recognize the impact huge student debt can have on their employees, and are open to including some student loan reimbursement as part of their benefits package.
3. Choose a job that is in demand. When it comes to paying off your student debt, some jobs are better than others. Not only will you eventually make more money, allowing you to pay your debt faster, but some professions such as teachers and nurses offer special student loan forgiveness programs.
4. Move somewhere cheaper. Your biggest post-college expense will probably be rent. By moving somewhere affordable, living frugally and taking on a roommate, you can save money – which can be used to pay your debt down quicker. While moving to a more affordable location in town is a good idea, sometimes moving to a more affordable state will save you more.
5. 
   Take your deductions. When you pay back your student loans, a portion of that is interest on them. When you file your taxes, you can get a nice tax break by deducting up to $4,000 for interest on qualifying student loans. Additionally, you can claim up to $2,500 with the American Opportunity Tax Credit for qualified higher education expenses.
6. Make the most of your grace period. You may have a grace period after graduation, depending on your loan type. During this time you aren’t required to make any payments toward your student loans. Instead of ignoring your debt during this time, start making payments now. You will save significantly in the long run.
7. Make auto-debit payments. Depending on your lender, enrolling in an automatic payment program can reduce your interest rate. For example, if you qualify, Sally Mae provides a .25 percent interest reduction on your loan. While this may seem like a small amount, that results in significant savings over time. Plus, you’ll avoid missing payments and incurring fees, which will increase the amount you owe.
8. Don’t incur more debt. While it is tempting to commit to significant financial obligations after graduation, such as purchasing a vehicle, buying a home or getting married, those debts will make it more difficult to get out from under your student loan debt. Instead, opt for less pricey options or put those decisions off until your loan debt is repaid.

Navigating the Jungle of Student Loans: What Loans Are Available?

When it comes to financing your education, you have several options available. While some people may have already taken advantage of New Jersey's 529 College Savings Plan or are expecting a scholarship, they may still need to supplement their money with a student loan. There are many types of student loans and it’s important to understand what your options are before you sign up for anything. Use this quick guide to learn more.

NJCLASS Student Loans

New Jersey College Loans to Assist State Students (NJCLASS) is a loan option that helps students pay for the some of the costs they may not have covered by other loans or grants. For example, some loans may only be for $5,500 per semester, but your tuition could be more than that. Your NJCLASS loan would help you pay for that excess.

The benefit of choosing an NJCLASS loan over a federal student loan is that the payment plans and interest are usually lower. You can also prepay your loan without any penalties, giving you more flexibility in how you pay. These loans are available to residents of New Jersey attending school in or out of state, as well as people attending school in New Jersey.

Federal Subsidized Loans

Another option students have is a direct subsidized loan. These federal loans are backed by the government. In fact, the federal government will pay the interest on your loan while you are in school. These loans are specifically designed for undergraduates and offer fixed interest rates. Unsubsidized federal loans will occur interest as soon as the funds are disbursed to you or the school.

Private Student Loans

Private student loans are very similar to unsubsidized loans, as you usually start incurring interest right away. These loans are issued by a bank or other trusted lender, rather than the government. This gives you even more flexibility in how much you borrow and at what cost. The only downside is that these loans are not issued by need and you often need to have some income in place in order to qualify.

Choosing the Best Student Loan Option

Every student comes from a different financial background and has different educational goals. This can make it difficult to create a perfect, uniform way to fund undergraduate degrees. If you are planning on getting financial aid, contact HESAA to learn how we can best assist you.

Mastering The FAFSA Application

The deadline to apply for FAFSA is coming up quickly. This application for federal financial aid for students can be a big help in gaining any student loan help. The process really isn't that hard, but some people take a while to get it filled out. The sooner you can complete your application the better, allowing you time to insure you don't miss the unmovable deadlines. 

Getting financial aid through applying for FAFSA can help bridge the gap between the amount you can pay, and the amount you have gained through scholarships and grants. Check out our simplified tips and tricks to filling out your FAFSA application.

Should Student Loans be Forgiven?

The issue of student loan forgiveness has recently been a contentious issue in modern politics, and is a issue we face often at HESAA, New Jersey's Student Loan department, Historically, student loans were issued primarily by private banks, and even then primarily to the children of the reasonably well-off, and so concerns about loan forgiveness and default were minimal, especially when college graduates seemed to be guaranteed high-paying jobs. However, the modern employment market demands bachelor's degrees for most entry-level jobs, and rising tuition costs mean that more people must borrow their way to an education than ever before. This, combined with recent scandals involving for-profit universities, has led many to clamor for more lenient policies regarding loan forgiveness.

Originally, the thinking behind making student loans so hard to forgive was a fear by private banks that new graduates would simply declare bankruptcy as a matter of course. Before the 1980s, most college students had no credit to speak of and there was a general opinion among bankers and regulators that students would not see bankruptcy as much of a penalty, since they would leave college with low income and low savings anyway, and could simply enter the job market with a bad credit rating and build it up over time. As such, banks argued that student loans should only be forgiven in the event of death or total and permanent disability. Basically, if the student was still able to function on some level, they should be forced to repay the loan, since the bank had no security other than the potential employment of the student.

The opinion on this began to change rapidly after the 2008 financial crisis, where an increased focus on lending regulations in general revealed numerous hardship cases where persons had either been deceived about the likelihood they would be employed or were simply unable to pay due to massive job losses in their industry. Additionally, there was increasing concern that the current system forced students to only choose high-paying jobs, as they would need to pay off large loans prompted by ever-increasing tuition prices.

In response, in 2010, Barack Obama signed a bill that would mandate that federal government agencies such as HESAA manage all student loans, and that they would offer new programs to enable graduates to have their loans forgiven. These programs are there to help students who give back, but also come with certain requirements to qualify. You can see a list of programs available for New Jersey students and their eligibility requirements by visiting this link on HESAA.org.

Why You Should Apply for NJCLASS

Introduction

Higher education often requires motivated students to make some difficult financial choices. Whether assistance is needed from parents or from financial aid resources, students are encouraged to explore a variety of college financing options. As a state approved agency that is dedicated to helping high school graduates locate funding, the Higher Education Student Assistance Authority (HESAA) provides information about a variety of unique loan programs, scholarships and grants.

New Jersey Student Loans

Money is available for students who attend higher educational programs in New Jersey. Additionally, residents of New Jersey may apply for loan programs to finance in-state educational expenses or to pay for higher education costs in another state.

Affordable financing solutions offered through the New Jersey College Loans to Assist State Students (NJCLASS) may be used to meet certain educational costs that are needed beyond traditional funding sources. Students may use the money that is received from NJCLASS to pay for tuition, books, campus-based housing or off campus housing, educational fees, computers, equipment and other expenses.

Scholarships and Grants in New Jersey

HESAA offers a large list of resources for New Jersey residents who need financial assistance for higher education expenses. Students may apply for merit-based programs and scholarships to help pay for certain educational costs. Financial aid counselors are available to discuss a variety of ways that a New Jersey resident may be able to cover higher education costs via NJCLASS and HESAA resources.

Consideration

Many students apply for financial assistance through the HESAA and NJCLASS. Certain deadlines are established for each year to apply for financial assistance. Students are encouraged to timely submit the required financial aid documents that are needed to determine whether an application will be approved.

Students who are awarded financial aid through the Higher Education Student Assistance Authority or the New Jersey College Loans to Assist State Students generally receive low-cost loans that are extremely competitive.

On the NJCLASS website, students can review loan information and receive tips about borrowing money for higher education costs. The website also offers options to make student loan payments and to consolidate student loans.

Borrow Wisely: Your Guide to Minimizing Student Debt

Most students rely on loans to finance their college education. While most experts say that this type of debt can be a wise investment in the long run, they stress that students should weigh their personal needs, resources available, and ability to repay when considering how much is too much to borrow. The following tips can help you keep your student loan debt from becoming overwhelming.

Choose a Marketable Major

It pays to select a field of study that is in demand. Literally. It can mean the difference between quickly finding a well-paying job and being unemployed after graduation. That doesn’t mean you have to commit to a major in computer science, technology or engineering, if you have no interest in the subjects, but if you are majoring in a topic such as economics, taking accounting as well can’t hurt. If your field of study is history or government, you should consider also learning a foreign language, or if you are a journalism major, having a health, business or computer minor can bolster your opportunities.

Bypass the Standard Four-Year College Plan

You can save thousands of dollars by starting off at a community college and later transferring to a four-year school. Enrolling in Advanced Placement (AP) courses through the College Level Examination Program can also help high school students reduce future expenses by providing college credits. By graduating from a community college first, you can save up to $1,000 on textbooks, save on housing while living at home, and then move on to a four-year college debt-free.

Don’t Overlook Scholarships and Grants

Research the schools you are interested in to find all of the grants and scholarships you qualify for. Look for offerings from community groups and local foundations as sources of support. In New Jersey, check out the Higher Education Student Assistance Authority (HESAA) for help locating sources of applicable scholarships and grants.

Apply For Federal Student Loans

Most students rely on federal government loans to finance at least a portion of their education, as they do not require collateral or credit checks, and they feature low interest rates. They also offer a variety of extended repayment and deferment options. Federal PLUS loans are available for parents, while Federal Perkins and Federal Direct Loans are available for students.

Consider Private and Supplemental Loans

If you have exhausted all of your resources such as grants, scholarships and federal loans, and still have college expenses that aren’t covered, supplemental loans like New Jersey College Loans to Assist State Students (NJCLASS) can help bridge the gap between the full cost of your education, grants and scholarships you’ve been awarded, and the amount you can borrow from government programs.

Borrow Smart

Calculate the amount of college debt you can reasonably shoulder. There are many online student loan calculators available online to assist you in estimating the amount of college debt you can manage based on your major’s starting salary, your maximum recommended loan debt, and the total cost to repay. A typical guideline is to borrow no more than twice your anticipated beginning salary upon graduation to reduce the risk of default.

How Much Is Too Much? Things to Consider When Getting a NJCLASS Student Loan

One of the hardest parts of getting a student loan is knowing how much to ask for. Asking for too little can leave one destitute, taking on regular employment that puts you at risk of neglecting your future education for your current obligations. But taking too much can likewise be dangerous, since every dollar borrowed today will cost you more than a dollar when the loan comes due. At HESAA, to often we see students borrow too much during their education and live a bit more opulently than their future employment can really support. This results in decreased future earnings and a huge debt that's all the more difficult to pay down.

So how can you, as a student in New Jersey, avoid borrowing too much, without borrowing too little? It's a tough needle to thread, but there are an increasing number of tools that students can use to get the job done right. The first (and oldest) is simply to begin asking around within your own major or specialty. Most departments now understand that student loans are not quiet embarrassments but instead public issues, and are willing to discuss how much other students are borrowing and what expenses can be expected. Schools are much more open about pricing and living expenses, and many will offer suggested borrowing plans for different majors or career paths.

Second, more and more public research has been conducted on student expenses, enabling upcoming students to understand their potential expenses by looking at trends as a whole. Researching what others borrow is key to figuring out how much you should borrow, and enables you to narrow down what sort of range you should apply for. Making sure you borrow something close to what's expected also helps reduce your risk, since it will more closely match you with what you anticipate your industry of choice will enable you to pay back.

Third, it's important to know yourself. Some people can live on store-brand coffee while others will be too miserable to function without daily visits to coffee shops. Look at your own expenses and see what you really spend on yourself - the number may be surprisingly high. Talk to your parents and see what they spent on you in high school, and compare that with your own bills, budgets and spending habits. Accounting for living expenses is one of the most intractable parts of attending college, and borrowing enough to keep yourself comfortable, without overreaching your ability to repay is very important.

In the end, you should borrow an amount that allows you to live comfortably, but that you are comfortable with. If the number looks a little high, it probably is. So don't hesitate to talk to others about what they borrowed, and how they spent it. You may save thousands in the long run.