Terms Used In New Jersey Statutes 18A:71C-25

  • Academic year: means the period between the time school opens in any school district or under any board of education after the general summer vacation until the next succeeding summer vacation. See New Jersey Statutes 18A:1-1
  • Higher education: means that education which is provided by any or all of the public institutions of higher education as herein defined and any or all equivalent private institutions. See New Jersey Statutes 18A:1-1
  • 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
18A:71C-25. a. The authority shall establish maximum annual loan amounts and maximum total loan amounts which may be made under the NJCLASS Loan Program; however, the amount of a NJCLASS Loan Program loan may not exceed, in combination with other financial aid, the total education costs of attending an eligible institution as determined by that institution.

b. In the case of a student borrower who first borrows under the NJCLASS Loan Program after the effective date of P.L.2017, c.198, the maximum total loan amount which may be made shall not exceed $150,000. The amount of the borrowing cap shall be increased for each academic year over the prior year by the regression-based index value of the Higher Education Price Index. The borrowing cap shall not apply to loans that are consolidating or refinancing existing loans.

c. When establishing the maximum annual loan amount for a student borrower, the authority shall deduct the maximum amount of federal Direct Subsidized Loans available to the student from the available NJCLASS loan amount. If the available interest rate for federal Direct Unsubsidized Loans is lower than the interest rate available to the student under the NJCLASS Loan Program, the authority shall deduct the maximum amount of federal Direct Unsubsidized Loans available to the student from the available NJCLASS loan amount.

amended 2017, c.198, s.2.

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