For NJ CLASS student loans, default occurs when you fail to make a payment when due, or to meet other terms of the note.  This must be done "under circumstances where (HESAA) finds it reasonable to conclude that the borrower no longer intends to honor the obligation to repay."  But what does that mean?

It can mean different things depending on how often payments are due.  It is where the failure to repay persists for:

  • At least 180 days when payments are due monthly; or
  • At least 240 days during the period of time you are in school and payments are due less frequently (usually quarterly)

So, either six (6) monthly payments behind or 8 months if you are in school. So what happens to you if you default?

If you live in southern New Jersey and are being sued on an NJ CLASS loan, please feel free to call my office at 856-432-4113 or contact me through this site to schedule an appointment in my Woodbury office to discuss your how to handle it.

If you would like more information about student loans, you can download my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

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