Sponsored by:
Senator JAMES BEACH
District 6 (Burlington and Camden)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Directs Higher Education Student Assistance Authority to forgive certain student loans in the event of the borrower’s death.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning student loans offered through the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program and supplementing chapter 71C 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. In the event of the death of an eligible student borrower, the authority shall fully discharge the obligation of the student borrower and a parent or guardian who cosigned the loan.
b. The executor or administrator of the student borrower's estate shall provide written notification to the authority of the student borrower’s death and shall provide the authority with a certified copy of the death certificate within 120 days of the student borrower’s death.
2. This act shall take effect immediately.
STATEMENT
This bill directs the Higher Education Student Assistance Authority (HESAA) to forgive student loans offered through the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program in the event of a student borrower’s death.
NJCLASS Loans are awarded by HESAA and may be used by undergraduate and graduate students to pay for school-related expenses including tuition and fees, books, supplies, and room and board. Under the program, if a borrower dies while the loan is still in repayment, a person who cosigned the loan (such as a parent) will assume responsibility for the debt’s repayment. Student loans obtained through the federal government are generally discharged in the event of the borrower’s death.
This bill provides that, in the event of an NJCLASS student borrower’s death, HESAA must fully discharge the obligation of the student borrower and a parent or guardian who cosigned the loan. Under the bill, the executor or administrator of the student borrower's estate must provide written notification to the authority of the student borrower’s death and must provide the authority with a certified copy of the death certificate within 120 days of the student borrower’s death.