<p>I have posted this on the fin aid board also but thought parents might have some thoughts on this.</p>
<p>If I have to borrow for tuition, is the NJClass loan the way to go?
We qualify (student has to be from NJ or attending in NJ); it's got a FIXED 5.9% if autodebited; 20 yr term; no prepayment penalty.
Seems a better deal than most PLUS loans I've seen.</p>
<p>This would be instead of our current home equity loan which is variable and much higher recently, of course.</p>
<p>Anyone actually have one of these NJClass loans?
Thanks for any info at all.</p>
<p>I never heard of it. I looked this up when you first posted since we are from NJ. It looked to me like this is a loan for graduate students though, but maybe I am wrong.</p>
<p>It does sound like a very good deal, except for the political BS praising Corzine. The one concern I had, which is mentioned at the very end of the press release, is about loan fees. They state that fees are limited to 2% of the loan amount. That seems like a lot to me, but if other types of student loans charge similar or higher fees, then it certainly would be a good option.</p>
<p>The more research one does.... the more confusing (and annoying) it gets! The press release I linked to announced 2 very important changes: The loan term was extended from 15 to 20 years, and the loan fees were reduced from 3% to 2%, yet their own website still shows comparison tables with the old information listed. Drew University and Rutgers (and I am sure other NJ colleges) have NJClass loan information on their websites.</p>
<p>NJRes- I agree that the more I look into this the more annoying it gets!
I actually think I'll pay this semester out of pocket and have it figured out by 2nd semester! How's that for a head in sand approach?</p>
<p>Yes, 2% 'origination fee' is pretty standard for Staffords, etc. I think the Parent Plus loans can be higher.</p>
<p>Northeastmom-
There is an undergrad and a grad version of the NJClass loan. But the website is confusing....apparently the grad one used to be variable but is now fixed....but listed various ways on website and phone 'your call is important to us' waiting music. </p>
<p>Why am I not surprised that NJ has what might be a good deal for its residents but a bunch of us fairly educated parents are unaware of it?</p>
<p>I would think that the financial aid office at the NJ universities have brochures and applications sitting there. I did pull the info up on Drew's website, thanks to NJres. My son is going to an oos school, so I guess that this is why I am unaware. My guess is that the hs guidance offices will have this info for next year's seniors. I won't be using this for this year, but it is good info to have at my fingertips-- who knows what the COA at S's school will be next year!</p>
<p>I completed this NJClass loan application online in about 10 minutes. They give you an instant 'pre-approval' decision. Printed out the promissory note, signed and mailed it. Pretty painless.</p>
<p>Also, opting for the auto-debit from checking cuts the interest rate to 5.9% fixed.</p>
<p>I also used this loan for Drew, was pretty simple and the interest rates beat any I could get in CT. I was a little disheartened to have to had taken a little more than I would of liked, but I'm going to pay the interest/principle starting 60 days after it goes through. Next year, we are going to really investigate whether it is financially feasible to stay (depending on aid) or look elsewhere. My son doesn't want a lot of loans for 4 years of college and although Drew is very generous, tuitions go up every year and awards stay the same or seem to go down! But that said, it seems to be a common complaint on most campus's. He had a nice talk with two grad students from Yale and they told him to save as much as he good for grad school and have income to buy a condo/car instead of living at home or with 3 people trying to juggle bills. They both went to cheaper LAC's and one just bought a small home. He's been talking to a lot of older students from different backgrounds and was astounded how much some of them will owe in 4 years....40,000 up to 80.000!</p>
<p>It's good that the NJCLass loans can be used for students attending in NJ even if the family resides in another state.
I agree with trying to minimize debt for undergrad....our son will have the max Stafford loans after 4 years, about $17,000. We will pay the rest, either out of pocket or with loans. We think this is a reasonable division for our family since his school costs 'only' about $19K per year. Son wanted badly to attend a $45T+ school he was admitted to but we would not agree to that size tuition bill.</p>
<p>Graduate school will be a whole other story.</p>
<p>Yes, we were lucky, they have great rates. They are a little hard to reach by phone but if you call early, it's under 15 minutes. (at least right now)We have about the same cut-off in aid and what we can pay and I told my son if he loses any more money,or the increases are too great, we would consider a cheaper college. I know he will love it there though, it seemed a good fit. He is frugal (great for his age) and doesn't want to have loans where the minimum pay back is over 300.00. I think for 20,000, it was 220.00 or close to it, but the calculators were very sobering. Sometimes the amounts don't mean anything to freshman excited about all that college is about, but when they graduate to the real world, it can be a burden. Where I work, many grads are home with big loans, car loans, credit card bills (dont' go there!) and are trying to save for the future. At least by the time my girls are ready (4 years) I'l hopefully be a bit more "seasoned" to the process. : )(I know, but I need to have some comfort)</p>
<p>Debruns-
Yes, getting the NJClass people on the phone is tricky! I had to call two separate times to clarify things and it wasn't so fun.</p>
<p>Drew is a lovely place.....we live down the street from the campus.
OUr son has attended chamber music workshops during several summers at Drew. They students seem to enjoy it there. You probably know that it is very close to the rail lines and commute into NYC and beyond is very easy.</p>
<p>I stumbled on this site looking for something else, but thought I would reply. </p>
<p>I took out NJ Class loans when I was in college a few yrs ago, from 1997 to 2001. During my time in school and also in repayment, actually never had a problem. It's a great program.<br>
They dont seem to have an online account management system (which to this day surprises me, and actually what I was google'ing when I found this site). I think you can apply online maybe, but once you're in repayment you cant access anything online.
The checks were sent directly to Rutgers, then I had to go to the cashiers office and endorse them each semester (Rutgers sent me a letter).<br>
I had the same reasoning as it seems others here have in that my Stafford was max'd and my parents helped me as much as they could.
Not many people knew about this loan program, but it has been great for me.
Good Luck!
Mike</p>