TRENTON, NJ – The New Jersey Higher Education Student Assistance Authority (HESAA) proudly announces that it has lowered rates for the second year in a row for New Jersey students and parents who borrow for postsecondary education costs. This reduction was made possible through yet another successful bond sale to finance the New Jersey College Loans to Assist State Students (NJCLASS) program.
"We have an obligation to help students and parents obtain the best education at the lowest possible cost," said Gov. Chris Christie. "New Jersey ultimately reaps a reward for supporting students who aspire to succeed."
The following interest rates are effective for the 2013-2014 academic year:
- 10 year loan has been lowered from 6.15% to 5.49%.
- 15 year loan has been lowered from 7.05% to 6.65%.
- 20 year loan's interest rate remains at 8.05%.
"Our goal is always to provide students with the best rate possible, and we accomplished that goal again this year,” said HESAA executive director Gabrielle Charette. "Last year we lowered interest rates on our 10 and 15 year loan products and we were pleased that market conditions this year allowed for a further reduction to both of these products."
Borrowers who have already applied for an NJCLASS loan at last year's higher interest rates but whose funds have not been disbursed will receive the lower interest rates.
NJCLASS compares favorably to both the Federal PLUS Loan, which has a fixed interest rate of 7.9 percent and with the federal Stafford Unsubsidized loan, which carries an interest rate of 6.8%.
NJCLASS pays for educational costs not already covered by grants, scholarships or other loans. NJCLASS borrowers can choose from a variety of repayment options including immediate repayment of principal and interest, interest only during the in school period, and full deferral of interest and principal during the in school period. Eligible borrowers include New Jersey residents attending any college in or out of state, and out-of-state students attending college in New Jersey.
For further information and to apply online for a NJCLASS loan, please visit www.njclass.org.
HESAA is the only state agency with the sole mission of providing students and families with the informational and financial resources necessary to attain a higher education. HESAA administers the Tuition Aid Grant (TAG) program, the Part-time TAG for County College Students program, NJ STARS and NJ STARS II programs, New Jersey College Loans to Assist State Students (NJCLASS), the state's supplemental student loan program and NJBEST, the state's 529 college savings plan. To learn more about HESAA's programs, visit www.hesaa.org.