TRENTON, N.J. - With the cost of higher education on the rise, many students rely on supplemental loans to cover unmet educational expenses. However, some lenders, feeling the pinch of the credit market crisis caused by the subprime mortgage lending market, are unable to offer affordable supplemental loans.
The New Jersey Higher Education Student Assistance Authority (HESAA) has been working diligently with financial institutions, rating agencies, and bond insurers to ensure its ability to continue to offer NJCLASS loans for the Fall 2008 semester. Due to its unique and successful business model, HESAA expects to be one of the few states across the country in a position to offer supplemental loans. "I am very optimistic that through NJCLASS, affordable loans will be available to New Jersey families to assist them with financing the costs of higher education in spite of extremely challenging market conditions," said Executive Director, Michael Angulo.
A recent article in BusinessWeek commented favorably on the NJCLASS loan. "We are hopeful to continue that reputation by offering the best loan program possible," said Angulo. The interest rate for the NJCLASS loan for the 2008-09 academic year will be determined in July of 2008. HESAA is focused on keeping NJCLASS at the "head of the class" in the private loan market. Mr. Angulo commented, "We will continue working to assist our students with meeting the costs of higher education through an affordable and accessible NJCLASS program."
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Since 1959, HESAA, a non-profit, state designated Authority, has delivered over $18 billion in financial aid. Each year, over 1 million students receive assistance from outreach programs and aid programs HESAA administers including TAG, the Part-time TAG for County College Students, NJSTARS and II, the Garden State Scholars programs, the Federal Family Education Loan program, NJCLASS, and NJBEST. For additional information about HESAA please visit our website at www.hessa.org or call our toll-free hotline at 800-792-8670.
Posted 06/17/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
