Compare 2019-2020 State of New Jersey NJCLASS vs. Federal ...

Compare Academic Year 2022-23 State of New Jersey NJCLASS vs. Federal Parent PLUS vs. Sallie Mae Smart Option NJCLASS cannot be compared to Federal Direct Loans, subsidized or unsubsidized, because borrowers must first take Federal Direct Loans prior to NJCLASS loans. Like the Federal Parent PLUS loan, the NJCLASS family loan is a supplemental loan that can only be used to cover unmet need after all other aid, including Federal Direct Loans, is subtracted from the cost of attendance. The chart below compares different features of NJCLASS Loans and Federal Parent PLUS Loans or other Private lenders.

Loan Type

Who Can be a Party to the Loan

Repayment Option

Loan Type Sample Loan Amount Requested ? can borrow up to cost of attendance ? minus other aid4 Total Amount Borrowed (Including Fees)

Interest Rate/APR

Loan Fee Years in Repayment Payment while in School (Assuming One Loan Only)5 Payment when out of School (Assuming One Loan Only)5 Total finance charges & administrative fee (Assuming One Loan Only) Total Cost of Loan Estimated cost of borrowing over 4 years, at 16,000 per year, assuming that the interest rate is the same from year to year.

NJCLASS 10 Year- Fixed Rate Loan Click to Apply

NJCLASS 15 Year- Fixed Rate Loan Click to Apply

NJCLASS 20 Year- Fixed Rate Loan Click to Apply

Federal Parent PLUS 10 Year-Fixed Rate Federal Parent PLUS 15 Year-Fixed Rate Federal Parent PLUS Loan 20 Year- Fixed

Loan

Loan

Rate Loan

Click to Apply

Click to Apply

Click to Apply

The student or parent is the borrower. parent, relative or other US Citizen or

A

The student or parent is the borrower. A parent, relative or other US Citizen or

The student or parent is the borrower. A parent, relative or other US Citizen or

Parent Only

eligible

Non-Citizen may co-sign the loan.

eligible Non-Citizen loan.

may

co-sign

the

eligible Non-Citizen may co-sign the loan.

Parent Only

Parent Only

Immediate repayment of principal & interest

Fixed

Interest only while in school Fixed

Full deferment while in school Fixed

Immediate repayment of principal & interest (Other repayment options available) Fixed

Interest only while in school Fixed

Full deferment request Fixed

Sallie Mae Smart Option

The student or parent is the borrower. A parent, relative or other US Citizen or eligible Non-Citizen may co-sign the loan.

Immediate repayment of principal & interest Varible/Fixed

Sallie Mae Smart Option

The student or parent is the borrower. A parent, relative or other US Citizen or eligible Non-Citizen may co-sign the loan.

Full deferment while in school Varible/Fixed

$16,000

$16,000

$16,000

$16,000

$16,000

$16,000

$16,000

$16,000

$16,494.85

3.75%1/4.548%

3.00% 10 (120 months) $166.19 $160.35

$16,495

5.30%1/ 6.022%

3.00% 15 (180 months) $72.97 $165.17

$16,495

6.75%1/7.153 %

3.00% 20 (240 months) $0.00 $183.98

$16,706.34

7.543%2/8.535%

4.228%3 10 (120 months) $198.68 $198.68

$16,706.34

7.543%2/8.442 %

4.228%3 15 (180) $105.01 $183.96

$16,706.34

7.543%2/8.214 %

4.228%3 20 (240 months) $0.00 $191.00

$16,000

$16,000

Weighted Average* Annual Borrower Interest Rate Weighted Average* Annual Borrower Interest Rate 8.64%

8.64% (published fixed range as of February 2022 (published fixed range as of February 2022 3.754% to

3.75% to 13.625%)

13.625%)

0.00%

0.00%

10 (120 months)

20 (240)

$199.58

$0.00

$199.58

$202.52

$3,812.59

$9,370.10

$19,127.22

$7,841.60

$13,560.05

$21,245.00

$7,949

$23,491

$19,812.59 $664.76 per month

$25,369.92 $660.68

$35,127.22 $735.92 per month when out of college

$23,841.60 $794.72 per month

$29,560.05 $735.84 per month

$37,245.00 $764.00 per month when out-of-school

$23,949 $798.32

$39,491 $810.08 per month when out-of-college

$79,250.36 over life of loans

$101,479.68

$140,508.88 over life of loan

$95,366.40 over life of loan

$118,240.20 over life of loans

$148,980.00 over life of loan

$95,796.00

$157,964.00

Relief Options

Deferment/Forbearance Options

Repayment Relief Options Including Income Contingent Repayment Plans

Repayment Assistance Program (RAP) and Household Income Affordable Repayment Plan (HIARP) for eligible NJCLASS Standard loans.

Federal Repayment Plans

Average Default Rate Average # of Administrative Wage Garnishments Percent of Deferment and Forbearance Relief Granted

7.93%6 For FY2021, 0 AWG orders were sent to employers.

12.5% (as of January 2022)

Center on Education Data and Policy Research Report:

Data Not Available

Data Not Available

Rehabilitation Relief

Yes, if parties to a defaulted NJCLASS loan make 9 out of 10 voluntary monthly on-time payments pursuant to a settlement agreement, the loan shall be considered rehabilitated for the limited purposes of meeting the requirements of Title VI of the federal "Economic Growth, Regulatory Relief, and

Consumer Protection Act," Pub.L.115-174.

Yes - If no legal judgement was issued/granted

Average # of Law Collection Lawsuits

There were no new collection lawsuits in 2021.

2 For Direct PLUS Loans first disbursed on or after July 1, 2022, and before June 30, 2023, the interest rate is 7.543%. The interest rate for Direct PLUS loans disbursed before July 1, 2022 is 6.28 %. 1 Fixed interest rate for the life of the loan

3 For Direct PLUS loans disbursed on or after October 1, 2021 and before October 1, 2022, the loan administrative fee rate is 4.228%. 2 For Direct PLUS Loans first disbursed on or after July 1, 2022, and before June 30, 2023, the interest rate is 7.543%. The interest rate for Direct PLUS loans disbursed before July 1, 2022 is 6.28 %.

3 For Direct PLUS loans disbursed on or after October 1, 2021 and before October 1, 2022, the loan administrative fee rate is 4.228%.

4 The average NJCLASS loan amount is $16,000. To see the monthly payment amount and total amount for other loan amounts at sample interest rates ranging from 4.00% to 17.50% see the Student Loan Guide

5 To calculate the in-school and out-of-school payment amounts for other NJCLASS loan amounts see the NJCLASS loan calculator

6 As of 12/31/21 the average default rate is determined as the percentage of loans that have been placed in a defaulted status, divided by the original total amount of loans disbursed for currently outstanding trusts.

Data Not Available



NJ Rev Stat ? 18A:71C-21.2 (2019) last update: 5/12/2022

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