STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
Assemblywoman CELESTE M. RILEY
District 3 (Cumberland, Gloucester and Salem)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblymen Wilson, Schaer, Fuentes, Cryan, Gusciora, Assemblywomen Stender, Wagner, Assemblymen Eustace, O'Donnell, Mainor and Ramos
Requires the Higher Education Student Assistance Authority to develop and distribute a document containing student loan repayment information for school districts and nonpublic high schools to disseminate to students.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning student loan repayment information and supplementing chapter 71A of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Higher Education Student Assistance Authority shall develop a student loan repayment information document. The document shall include, but need not be limited to: examples of monthly and annual loan payments required for State, federal, and private student loans, whether subsidized or unsubsidized, based on various principal loan amounts and current interest rates; information on the time period it would take to fully repay those loans based on various loan repayment schedules; definitions of fixed rate loans, variable rate loans, and consolidation loans; and information on the consequences and penalties of defaulting on a student loan.
The authority shall: post the document on its website; transmit the document via electronic mail to each school district that includes grades 9 through 12 and nonpublic high schools by October 1 of each school year; and update the document as appropriate, but no less frequently than every five years.
b. A school district and a nonpublic high school shall annually disseminate the document developed pursuant to subsection a. of this section to each student in the 11th and 12th grades.
2. This act shall take effect immediately and shall first be applicable to the 2011-2012 school year.
This bill requires the Higher Education Student Assistance Authority (HESAA) to develop a student loan repayment information document, post the document on its website, and annually distribute the document to school districts that include grades 9 through 12 and to nonpublic high schools. The document will include examples of monthly and annual loan payments required for various types of student loans, based on differing principal loan amounts and current interest rates, the time period it would take to fully repay those loans based on various monthly or annual payment installments, definitions of fixed rate loans, variable rate loans, and consolidation loans, and the consequences of defaulting on a student loan. The bill requires the school districts and nonpublic high schools to annually disseminate the document to each student in 11th and 12 grades.