New Jersey Statutes 18A:71C-21.2. Development of student loan comparison information document
Terms Used In New Jersey Statutes 18A:71C-21.2
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Forbearance: A means of handling a delinquent loan. A
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(1) loan type, including loan term, interest rate whether fixed or variable, and annual percentage rate (APR);
(2) repayment options, including the availability of income-contingent loan repayment options, and clear information on when repayment would begin and how that may be different from the federal student loan programs;
(3) loan origination, administrative, and other fees over the life of the loan;
(4) estimated cost of borrowing over the life of the loan and estimated monthly payment amounts for each loan type at each of six sample loan disbursement amounts;
(5) availability of loan deferments, loan forbearance, and loan forgiveness, the reasons for which a deferment, a forbearance, or forgiveness may be requested, and the percentage of the requests that are granted;
(6) the average annual default rates under each loan program, the average annual number of loan collection lawsuits filed under each program, and the availability of a loan rehabilitation program; and
(7) the average annual number of wage garnishment orders issued under each program.
b. The comparison information document shall be posted in a prominent location on the authority’s website and shall be linked to the online application for an NJCLASS loan. A copy of the document shall be included with a paper NJCLASS loan application. The comparison information document shall be distributed at any financial aid workshop conducted by the authority for high school students or their parents and shall be included in any NJCLASS Loan Program promotional materials distributed by the authority.
L.2017, c.129, s.2.