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.
