Yahoo Finance New Jersey Student Loans: Debt Stats, Repayment Programs and Refinancing Loans
New Jersey borrowers carry an average federal and private student loan debt balance of $33,563 — 9% less than the U.S. average of $36,689.
Eligible students can take advantage of the tuition-free New Jersey Community College Opportunity Grant. Separately, the Tuition Aid Grant (TAG) may cover up to the cost of tuition for those attending participating schools.
The 2021 fiscal-year budget from Gov. Phil Murphy included a proposal for the Garden State Guarantee program, though it was removed months later amid the coronavirus pandemic. The $50 million program would’ve provided two years of tuition-free education to qualified low-income students at public four-year colleges or universities in New Jersey.
Here’s what else you should know about New Jersey student loans.
New Jersey borrowers owe average of $33,563 in federal, private student loan debt — and more facts
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Students can attend one of 18 public community colleges in the state, from Camden County College to Atlantic Cape Community College to Essex County College.
There are seven state colleges in New Jersey, including:
Ramapo College of New Jersey Stockton University Thomas Edison State University
The state is also home to notable public universities, such as Rutgers University, and esteemed private institutions, such as the Ivy League’s Princeton University.
Community college students with a total household adjusted gross income of $65,000 or lower are automatically considered for the Community College Tuition Grant. Students enrolled in a minimum of six credits per semester must submit their Free Application for Federal Student Aid (FAFSA) or the New Jersey Alternative Financial Aid Application — for New Jersey “Dreamers.” This grant isn’t available to students who’ve previously earned a college degree.
Students in approved degree programs who demonstrate financial need can also explore the TAG program. Eligible students must have been a state resident for at least 12 consecutive months and meet other requirements. Those who don’t qualify for these New Jersey tuition grants, however, might need to consider other forms of aid, such as student loans.
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Student loan debt in New Jersey’s largest counties, from Bergen to Union
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Student loan debt by ZIP code in New Jersey’s 2 largest cities: Newark, Jersey City
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Loan repayment programs for New Jersey residents
New Jersey’s Higher Education Student Assistance Authority (HESAA) manages loan repayment programs for qualified state residents.
John R. Justice Student Loan Redemption Program New Jersey STEM Loan Redemption Program Nursing Faculty Loan Redemption Program Primary Care Practitioner Loan Redemption Program |
John R. Justice Student Loan Redemption Program
Full-time New Jersey public defenders and prosecutors with eligible federal student loans in good standing can seek repayment support through the John R. Justice Student Loan Redemption Program. Federal government employees aren’t eligible.
After at least three years of public-sector service, a lump-sum payment will be provided to the recipient’s federal student loan lender.
The award amount for 2020-21 is $2,433.78. Borrowers can reapply for an additional year of service after completing the initial contract.
New Jersey STEM Loan Redemption Program
The New Jersey STEM Loan Redemption Program is available to degree-holders who graduated after Dec. 14, 2018, from an in-state college or university, or New Jersey residents who have worked in a STEM field for at least four years.
Up to $2,000 is awarded for each service year, for a maximum of $8,000 over a four-year commitment. The first applications will be accepted in December 2022. Participants don’t need to apply annually, but employer certification is required each year.
Nursing Faculty Loan Redemption Program
The Nursing Faculty Loan Redemption Program offers student loan support for nursing graduates with:
Master’s degrees in nursing Doctorates in nursing, nursing practice, nursing science or another similar field
Participants can serve a maximum commitment of five years. However, New Jersey residents can withdraw at any time. Awards (which can’t exceed $50,000 total) are based on the commitment year:
Year 1: $5,000 Year 2: $7,000 Year 3: $10,000 Year 4: $13,000 Year 5: $15,000
Borrowers must meet GPA requirements and begin full-time work within a year of earning their graduate degree. Only federal or New Jersey student loans in good standing qualify.
Primary Care Practitioner Loan Redemption Program
Primary care health providers who’ll work in underserved areas in the state can consider the Primary Care Practitioner Loan Redemption Program. It offers recipients up to $120,000 in student loan repayment for a two- to four-year service commitment.
Eligible borrowers include:
Certified nurse midwives Certified nurse practitioners Dentists Physician assistants Physicians
Applicants — who must reside in New Jersey — have to join the program within two years of completing residency or training.
New Jersey federal student loan borrowers younger than 25 owe more than national average — and more comparisons
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How to refinance student loans in New Jersey
More than 7% of New Jersey borrowers owe $100,000 or more in student loans. Refinancing student loans — especially for those with six-figure debt — can help borrowers get debt-free, faster.
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The HESAA offers ReFi+ Refinance Loans to borrowers with outstanding NJCLASS Loans, federal parent PLUS loans or private student loans. Interest rates — which range from 4.15% to 6.49% as of Dec. 13, 2020 — on the 10- or 15-year repayment terms depend on various factors, including creditworthiness, income and debt-to-income ratio.
New Jersey borrowers with student loans that don’t qualify might consider refinancing with a private lender. Private refinancing loans are provided by traditional banks and credit unions, as well as online lenders.
Regardless of which refinancing option borrowers pursue, it’s important to note that refinancing federal student loans can be risky. Federal loans offer useful borrower benefits, including:
Income-driven repayment plans Loan forgiveness Deferment or forbearance in the event of financial hardship
Borrowers lose access to these protections when they refinance federal loans, though some private lenders offer various forms of deferment or forbearance.
Sources U.S. Department of Education data as of June 30, 2020 Anonymized My LendingTree June 2020 credit reports Federal Reserve Bank of New York Consumer Credit Panel/Equifax as of June 2020 mappingstudentdebt.org
Because the latter data is from 2015, researchers estimated the increase in student loan debt per borrower in the state using statewide data from anonymized credit reports.
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