Paying for College
Paying for college isn’t always easy, and with rising tuition fees, it can sometimes seem almost impossible. When college costs are looming, it can be easy to lose sight of the different ways you can meet these financial obligations, which is why HESAA is here to help. Generally speaking, there are three main sources of funding that can be used to pay for school. First and foremost, educational savings put aside by the student or their family can be a great advantage in attending school affordably.
Second, prospective and current students should always look into eligibility requirements for Grants and Scholarships. Choosing not to look into these types of funding can be a big mistake. Because they don’t have to be repaid, both grants and scholarships are, in essence, free money.
Student Loans
When educational savings, grants and scholarships aren’t enough, it’s time to start looking at student loans. Federally funded student loans, both subsidized and unsubsidized, tend to be the best and most affordable options. However, there are times that students and/or their families make too much money to qualify for these low-interest loans or they don’t qualify for high enough loan amounts to fully cover college costs. When this occurs, private or supplemental student loans may need to be considered.
Private student loans tend to have the highest interest rates of any loans available for education, and should typically only be considered as a last resort. Supplemental student loans, on the other hand, are available from various sources, including the U.S. Department of Education and various state agencies. For example, Direct PLUS Loans are offered to parents of dependent undergraduate students and to graduate or professional students through the U.S. Department of Education.
NJCLASS Student Loans
Students who are from New Jersey or who plan on attending college in New Jersey should determine if they are eligible for NJCLASS student loans, supplemental loans available through New Jersey’s Higher Education Student Assistance Authority (HESAA). New Jersey College Loans to Assist State Students (NJCLASS) are supplemental student loans offered to two specific groups of college students:
New Jersey Residents Who Plan to Attend an Eligible In-State or Out-Of-State School
Out-Of-State Students Attending a School in New Jersey
These loans can help you pay for college costs that are not covered by other sources of funding like savings, grants, and scholarships. The program was established in 1990 and most repayment plans offer lower fees and interest rates than Federal PLUS Loans. Like PLUS Loans, NJCLASS loans can be utilized by undergraduate students’ families and by Graduate and Professional students. NJCLASS loans are also available for consolidation of student debt.
For New Jersey college students and their families, NJCLASS loans are often a better choice than PLUS Loans because they tend to offer lower fees and interest rates than their federal counterpart. Most borrowers have a choice of repayment options and can begin repayment while they are still in school or after graduation. Additionally, there are no prepayment penalties for paying off NJCLASS loans early, so borrowers can save even more money on student loan debt interest by paying more than their minimum payment each month.
In conclusion, NJCLASS loans can be a great option for those seeking a college education in New Jersey. However, you should always remember that if you need to borrow money for a college education, you need to Borrow Wisely.
