Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
Senator ROBERT M. GORDON
District 38 (Bergen and Passaic)
SYNOPSIS
Restricts eligibility for borrowing through the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program to students attending in-State institutions of higher education.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning eligibility for borrowing through the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program and amending N.J.S.18A:71C-24 and N.J.S.18A:71C-27.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:71C-24 is amended to read as follows:
18A:71C-24. Unless restricted by the authority by regulations, "eligible institution" means, for the purposes of this article only, an institution of higher education located in the State and licensed by the appropriate agency or department and accredited or preaccredited by a nationally recognized accrediting association. Eligible institutions shall also include certain proprietary institutions but only for degree granting programs approved by the commission or for other proprietary institutions as determined by the authority.
(cf: N.J.S.18A:71C-24)
2. N.J.S.18A:71C-27 is amended to read as follows:
18A:71C-27. a. Unless otherwise restricted by the authority by regulation, an eligible student under the NJCLASS Loan Program shall:
(1) be a New Jersey resident enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution in New Jersey; or
(2) [be a New Jersey resident enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution outside of New Jersey; or] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
(3) reside outside the State and be enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution in New Jersey.
b. To be eligible for a NJCLASS loan financed in whole or in part by qualified student loan bonds, as described under section 144(b) of the Federal Internal Revenue Code of 1986, 26 U.S.C.s.144(b), the student in addition to meeting the requirements of subsection a. of this section, shall meet the eligibility criteria described in section 144(b) of the Federal Internal Revenue Code of 1986, 26 U.S.C.s.144(b), or not be in violation of any other criteria which would result in the bonds no longer to be qualified under section 144(b) of the Federal Internal Revenue Code of 1986, 26 U.S.C.s.144(b).
(cf: N.J.S.18A:71C-27)
3. This act shall take effect immediately.
STATEMENT
Current law provides that a borrower in the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program must:
(1) be a New Jersey resident enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution in New Jersey; or
(2) be a New Jersey resident enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution outside of New Jersey; or
(3) reside outside the State and be enrolled on at least a part-time basis as an undergraduate or graduate student in an eligible institution in New Jersey.
This bill amends the law to restrict eligibility to borrowers attending institutions of higher education in the State.