Wimberly Bill on Student Loan Info Becomes Law
Tuesday, January 22, 2013 • 5:16pm
TRENTON, NJ - Legislation Assemblyman Benjie E. Winberly sponsored to require educational brochures on college loan repayment schedules to be created and distributed to high school students was signed into law on January 17today.
“Many high school students enter into college student loan agreements without any real knowledge of how the process of repayment works,” said Wimberly (D-Union). “As part of ensuring that our students are prepared for college studies and college life, we can now open discuss the facts about post college responsibilities and student loan repayment.
“The prospect of college opens the high school student to new social and financial aspects they may have not had to think about before. This new law ensures our students will be given the important, additional information they need to plan their college years successfully.”
The law would direct the state Higher Education Student Assistance Authority (HESAA)
to create a document that will serve to educate high school students about college loan repayment schedules. The HESAA is now required to post the document on its website and distribute it annually to public and nonpublic high schools. School districts and nonpublic high schools would be required to disseminate the document to high school juniors and seniors annually.
The sponsors said the law was especially necessary and timely after an annual report issued in June 2011 by the U.S. Department of Education listed several New Jersey public colleges as among the most expensive in the nation.
The document will include examples of monthly and annual loan payments required for various types of student loans, based on differing principal loan amounts and current interest rates, the time period it would take to fully repay those loans based on various monthly or annual payment installments, definitions of fixed rate loans, variable rate loans, and consolidation loans, and the consequences of defaulting on a student loan.