Student Financial Aid from New Jersey’s HESAA

Getting ready for school? Wondering what is available for Student Financial Aid in New Jersey? The New Jersey Higher Education Student Assistance Authority (HESAA) helps students like you find the financial aid that they need in order to get a higher education. With their mission of “Providing students and families with financial and informational resources for students to pursue their education beyond high school,” HESAA seeks to provide opportunities for that might not otherwise be available through student loans, scholarships and grants.

As you can see in the infographic above, HESAA provides financial aid through many different channels. If you are looking for programs to help you save for college, you may consider looking into the NJBEST program, which helps families plan and save for college.

A popular program used by about ⅓ of New Jersey’s college undergraduates, the Tuition Aid Grant (TAG) program is a need-based grant that may cover up to the cost of tuition based on financial need, cost of attendance, and available funding.

If you are looking for Scholarships, and were part of the top 15% of your class during Junior or Senior year, the NJ STARS program can help you. Created with New Jersey’s highest achieving students in mind, the NJ STARS award can cover the cost of tuition for up to 5 semesters of continuous full-time enrollment in a degree program.

For help getting started, or just to learn more, visit HESAA.org.

Where to Apply for Student Financial Aid

Financing your education can seem like a daunting task. You already know that you should look into financial aid options, but you aren’t sure about where to start. Here at the Higher Education Student Assistance Authority (HESAA) we are here to help you know where to apply for student financial aid. Follow these easy steps and you’ll be on your way to financing your education:

1. Apply for Federal Aid

Complete the Free Application for Federal Student Aid (FAFSA). Federal Student Aid is the largest provider of student financial aid in the nation. It provides financial assistance in the form of grants, loans and a work-study program. There is no age limit to receiving assistance; you simply need to meet all of the eligibility requirements. The FAFSA application is available online and the earlier you fill it out the better. Be sure to visit their website and familiarize yourself with the current deadlines. They even have an Early Estimator Calculator that can help you get a rough idea of an early estimate of your eligibility for federal student aid. They recommend juniors in high school or even those in middle school to use this calculator. Having an idea of the funding that may be available to you early on will help you create a successful strategy for paying for school.

2. Apply for State-funded Grants and Scholarships

Make sure you are also considered for state assistance. When submitting your FAFSA, check to see if your state offers state funded grants and scholarships. Applying for state funding in New Jersey is easy and convenient. After you’ve submitted your FAFSA online, simply register for an account through the HESAA website and answer the New Jersey grant questions. The New Jersey Tuition and Grant Program (TAG) is one of the most generous need-based financial aid programs in the nation. It offers funding for full and part-time students attending select schools in New Jersey. The TAG program also offers an online NJ TAG Estimator to help you see what types of funding may be offered to you. New Jersey also has merit-based scholarships available through the New Jersey Student Tuition Assistance Reward Scholarship (NJ STAR). These scholarships are eligible to those who rank in the top 15% of their class at the end of their junior or senior year of high school who plan on attending select county colleges in New Jersey. In addition to these two programs, there is information about many more state funded grants and scholarships available through HESAA.

3. Look into Supplemental Student Loans

Consider investing in a student loan. There are times when college savings, scholarships, grants and federal loans just aren’t enough. Federally funded student loans, both subsidized and unsubsidized, tend to be the best and most affordable options. However, you may not qualify for these student loans, or you may not qualify for a loan large enough to cover all of your costs. When this is the case, students and their families can begin looking at private & supplemental loans like New Jersey College Loans to Assist State Students (NJCLASS) available through HESAA. HESAA will help you determine if you are eligible for NJCLASS loans. These supplemental student loans are offered to those New Jersey residents who plan to attend an eligible in-state or out-of-state school and to out-of-state students attending an eligible school in New Jersey.

Knowing the types of financial aid available to you can help you start your financial planning early. Having a plan on how you will pay for school is one of the first steps in setting yourself up for success. Following these easy steps will help you make one of the smartest investments in your future.

What Are NJCLASS Student Loans?

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.

How Much Does College Actually Cost?

Average College Costs for the 2015-2016 Academic Year

Most people know that college tuition rates go up almost every year. But it’s critical for potential students to understand how much their college experience is really going to cost. In addition to tuition and fees, there are a plethora of other expenses that need to be included in your budget, including transportation, housing, clothing, books, supplies, and more.

While many schools provide their prospective students with information on the average cost of many of these expenses, it’s important to figure out your own budget in order to know how much college is really going to cost you. You may only be able to estimate the cost of your books and supplies, but you often have much more control over expenses like food, clothing, and personal items. You’ll need to understand that one of the most critical factors in your college budget is where you live. That’s because housing and food expenses make up the second largest portion of most students’ college budget.

Once you estimate the full cost of your college, you’ll have a better idea of how much student financial aid provided by Grants, Scholarships, and Student Loans will factor into your educational future. Below, you’ll find an infographic detailing the average cost of college for private and public schools for the 2015-2016 academic year. Use these averages to give you a starting point for understanding your potential college expenses.

10 Great Ways to Minimize Your Student Debt

College is expensive. But the hard truth is that in many industries and fields you are much more likely to both gain employment and advance if you have a college degree. Nevertheless, you won’t be surprised that the ever-increasing cost of college tuition has created a world where crippling student debt is the reality for many college graduates. For many of these former students — and their families — their debt hangs threateningly over their heads like Damocles’ fabled sword.

Also unsurprisingly, the best way to minimize the painful effects of student debt, is to first strive to minimize student loan amounts in the first place. At HESAA, We have compiled this list of ways to do just that.

1. Take Advanced Placement (AP) Classes

Advanced Placement (AP) courses are designed to allow high school students to receive a range of college credits before graduating from high school. By taking advantage of these courses, you or your student can actually start college with credits already in place. These credits help fill college prerequisite and graduation requirements and allow you to pay for fewer classes at the college tuition level.

2. Consider a Starting at a Community College

Generally speaking, 4-year degrees require a range of general education courses as part of their curriculum. A cost-effective way to work toward your degree is to start at a community college. These schools offer most general requirement courses at a significantly lower rate than full universities. By taking these courses at a community college before transferring to the college or university of your choice, you can save quite a bit of money.

3. Choose an Affordable College

Every student dreams of being able to choose the best school with the best program for their major. In reality, however, that’s not always practical. Choosing a school that has a quality program in your field of study that is also affordable is one of the best and easiest ways to limit the amount of student loans you will need. When researching the cost of a school, don’t forget to include room, board, and other living expenses in the total cost of attending.

4. Choose an In-Demand Major

When you were a child, you probably didn’t think much about how much money you could make when you were asked, “What do you want to be when you grow up?” However, as a prospective student or a current student, majoring in a subject that is in-demand in the job market is crucial to graduating with a degree that can help you get a job that will allow you to support yourself, support your family, and pay back any student loans you incurred while pursuing your degree.

5. Utilize Savings, Scholarships, and Grants

If your family has been able to save for your college education, you’ll find yourself at a good starting point. 529 College Savings plans, like the New Jersey Better Educational Savings Trust (NJBEST), are one of the best ways to save for tuition. These “qualified tuition plans,” as they are legally known, can offer special tax benefits. Earnings in a 529 plan are not subject to federal tax, nor are they subject to state tax in most cases.

In addition to college savings, scholarships and grants can greatly reduce the amount of student debt you incur. One of the best things about both grants and scholarships is that they are essentially “free” money because they do not have to be paid back. Filling out your FAFSA (Free Application for Federal Student Aid) will tell you if you qualify for federal grants like Pell Grants or Federal Supplemental Educational Opportunity Grants (FSEOG). Additionally, FastWEb.com is a great resource for scholarships and grants that you can apply for depending on your high school grades and personal successes. Other places to look for scholarships include:

• Each College or University You Are Interested In,
• Local Foundations, and
• Local Community groups.

6. Limit What You’re Borrowing Money For

There are many aspects of college life that cost you money, including: tuition, books, supplies, housing, food, etc. Nevertheless, whenever possible, you should borrow money for as few expenses as possible. Even if you are able to use grants and scholarships to cover part of your expenses, borrowing for too many expenses can add up quickly.

Let’s look at an example to illustrate this. In our example, two students are attending an art school that costs $30,000 in tuition for a two year degree.

Student A: Has a $30,000 scholarship through the school that covers their tuition. However, they borrow $1,200 per month for books, supplies, and living expenses. Over the two years, they accumulate $28,800 in student debt.

Student B: Has $10,000 in grants and scholarships that goes toward their tuition. They choose to live with family and work a part time job to cover the costs of books, supplies, and food. Over the two years they accumulate $20,000 in student debt.

As you can see, limiting what expenses you borrow money for can make a real difference in how much debt you accumulate.

7. Work While You Study

As shown with Student B in our example above, working a part-time or full-time job while you’re in school can help you cover some of your expenses. The key is to find the balance of how many hours you can work without experiencing a negative effect on your studies. For some, the best balance is to go to school full time and work part time. For others, the solution is to work full time and take a few courses each term. There is no one, right answer, but balancing school and work can really help you limit how much money you have to borrow for your education.

8. Apply For Federal Student Loans First

As their name suggests, Federal Student Loans, are funded by the Federal Government. They offer a variety of benefits over private loans, including:

• Lower Interest Rates
• Deferral of Repayment While in School
• Tax Deductible Interest (in some cases)
• Possible Options of Deferral or Forbearance During Repayment

Because of these benefits, it is a good idea to see if you qualify for any Federal loans before looking at private loan sources for student loans.

You should understand that there are two main types of Federal Student Loans, subsidized loans and unsubsidized loans. On subsidized loans, the Federal Government pays the interest while the loan is in its initial deferral stage. Unsubsidized loans, on the other hand, begin accruing interest as soon as the loan is taken out. It is often beneficial to make “interest only” payments on unsubsidized loans while in school in order to maintain lower principal loan amounts.

9. Carefully Evaluate Private & Supplemental Loans

Not all loans are created equal. If you find yourself in need of private or supplemental loans, make sure that you carefully evaluate all aspects of each loan before signing. Keep in mind that some states offer supplemental loans to help students from their states or who are attending school in their state. For example, New Jersey offers New Jersey College Loans to Assist State Students (NJCLASS) to New Jersey residents who choose to attend qualifying in-state or out-of-state schools as well as to out-of-state students who plan to attend a school in New Jersey.

Here are a few of the details you should look at when choosing a private or supplemental student loan:

• Interest Rates, including if they are fixed-rate or variable-rate loans
• Term of the Loan(s), i.e. how many years you will be repaying the loan(s)
• Presence of Early Payoff Penalties
• When Repayment Begins
• If "Interest Only" Payments Can Be Made Before Repayment Begins

10. In Short, Don’t Borrow Exorbitant Amounts

All of the above tips funnel to this one: accrue as little student debt as possible. If you find that you need to borrow money to make your college dream come true, make sure that you aren’t selling your future to do so. In general, borrowing more than you can reasonably expect to make as your starting salary after graduation is a bad idea. You should know that students who borrow more than twice what they can expect to make as their starting salary will be at high risk of default.

Bonus Tip: Avoid Defaulting On Your Loan(s)

If at all possible, avoid defaulting on your student loans. Defaulting on your loans has different consequences for different types of loans, but the consequences can ruin your credit score for years and result in paying a significantly higher amount once late fees and interest are taken into consideration. While consequences vary widely for defaulting on private loans, some of the consequences for defaulting on Federal Student Loans can include:

• The entire unpaid balance and accrued interest becoming immediately due
• Loss of eligibility for forbearance, deferment, and repayment plans
• Your loans being sent to a collection agency
• Wage garnishment

By limiting the amount of student debt you acquire, you can put yourself in the best situation possible to avoid defaulting on your loans and setting yourself up to repay your loans on time.

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.

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.

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.