SENATE HIGHER EDUCATION COMMITTEE

STATEMENT TO

SENATE, No. 765

STATE OF NEW JERSEY

DATED:  FEBRUARY 8, 2018

      The Senate Higher Education Committee reports favorably Senate Bill No. 765.

      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.

      This bill was pre-filed for introduction in the 2018-2019 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.