Bill Text: NJ A3216 | 2010-2011 | Regular Session | Introduced
Bill Title: Directs Higher Education Student Assistance Authority to forgive certain student loans in the event of the borrower's death.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2011-02-03 - Reported and Referred to Assembly Appropriations Committee [A3216 Detail]
Download: New_Jersey-2010-A3216-Introduced.html
Sponsored by:
Assemblyman PETER J. BARNES, III
District 18 (Middlesex)
Assemblywoman LINDA STENDER
District 22 (Middlesex, Somerset and Union)
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 borrower's death, the authority shall fully discharge the obligation of the borrower and any individual who cosigned the loan.
b. The executor or administrator of the borrower's estate shall provide written notification to the authority of the borrower's death and shall provide the authority with a certified copy of the death certificate within 120 days of the borrower's death.
2. This act shall take effect immediately.
STATEMENT
The New Jersey College Loans to Assist State Students (NJCLASS) Loan Program is a supplemental student loan program administered by the Higher Education Student Assistance Authority (HESAA). NJCLASS loans 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 student 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 borrower's death, HESAA must fully discharge the obligation of the borrower and any individual who cosigned the loan. Under the bill, the executor or administrator of the borrower's estate must provide written notification to the authority of the borrower's death and must provide the authority with a certified copy of the death certificate within 120 days of the borrower's death.
