New Jersey Student Loan Lawyer

A typical student loan question is whether the loan is federal, state, or private. Each classification of loans has its own set of programs and options (or, in the case of private loans, lack thereof). Some confusion about a loan being federal is because it's Navient (or Sallie Mae) even though that company has its own private loan program, or private because it's a CLASS loan from New Jersey (a College Loan to Assist State Students) administered by the Higher Education Student Assistance Authority (HESAA). To confuse things even further, HESAA is an approved servicer of federal student loans.  

As an experienced student loan lawyer, Steve Richardson may be able to help with your CLASS loan. 

Are HESAA's CLASS Loans Private or Federal?

HESAA CLASS loans are not private or federal. They are not federal because they were not originated (or backed) by the U.S. Department of Education and are not private because a state government originated them. Although the CLASS loan program was initially supposed to mirror the federal system regarding programs for deferments, forbearances, debt forgiveness, default cures, and income-driven repayment plans, New Jersey and HESAA have been slow to step up in this regard, so what is available for federal loans may not be available for CLASS loans.

New Jersey's CLASS loans sit somewhere in between the other two. They have more programs for borrowers regarding repayment or default cure, but they also have more powerful methods to collect if you default, such as taking your state income tax refund or garnishing your wages without having to sue you. Private lenders must send the loan to a law firm to sue you, get a judgment, and then find out where you work and bank to collect the money.

Options for Repaying a CLASS Loan

There is hope if you can't afford the payment on your CLASS loan. HESAA has become much better at negotiating affordable payment plans that track your income. In addition, they will discharge the loan if the borrower dies or becomes permanently disabled and will cure the default on loans once specific requirements are met. In this way, they are much better than private loans, although not as robust as the federal ones.

Need Help with Your NJ CLASS Student Loans?

So, as you can see, New Jersey's government-backed student loans from HESAA offer advantages over private ones that can help you if you're struggling to pay them. If you live in New Jersey, are in default on the loans, and would like to discuss an affordable repayment plan, please click on this link to schedule an initial call to discuss your case. Put Steve Richardson's experience to work for you.

If you would like more information about student loans, download the free books I Graduated; Now What? A Guide to Dealing with Your Student Loans and Paying for Your Classes with a CLASS Loan: A Survival Guide to HESAA.

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.