Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
Senator THOMAS H. KEAN, JR.
District 21 (Morris, Somerset and Union)
Senator M. TERESA RUIZ
District 29 (Essex)
Senators Gordon, Greenstein and Pou
Requires Higher Education Student Assistance Authority to obtain court order prior to using certain collection practices for defaulted loans under New Jersey College Loans to Assist State Students (NJCLASS) Loan Program.
CURRENT VERSION OF TEXT
An Act concerning the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program and amending N.J.S.18A:71C-29.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:71C-29 is amended to read as follows:
18A:71C-29. a. Unless expressly limited to federal programs, the information exchange, wage withholding, collection procedures, repayment determinations, and other provisions set forth under article 1 of this part shall apply to the NJCLASS Loan Program.
b. Notwithstanding any provision of law to the contrary, in the case of any NJCLASS loan in default status, the authority shall obtain a court order prior to pursuing any of the following collection efforts: offsetting a State income tax refund or State lottery prize winnings; initiating wage garnishment; or suspending an occupational and professional license.
2. This act shall take effect immediately.
Under current law, the Higher Education Student Assistance Authority (HESAA) may pursue, without a court order, a variety of means to collect on a defaulted student loan made pursuant to the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program. This bill would require HESAA to obtain a court order prior to pursuing the following collection efforts on a defaulted NJCLASS loan: offsetting a State income tax refund or State lottery prize winnings; initiating wage garnishment; or suspending an occupational or professional license.