18A:71C-21.2 Development of student loan comparison information document.

2. a. The authority shall develop a student loan comparison information document. The document shall provide information that allows a borrower to compare an NJCLASS loan with loans available under federal student loan programs including the federal PLUS loan program, and shall provide examples of loan repayment under each program. The information provided on the comparison document shall include, but need not be limited to, the following:

(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.