NJClass loan- Is it a good deal?

Paying for College
1

<p>We have been using home equity line for two years to help with tuition we can't pay out of pocket. Seemed like a good idea since line was already in place and interest is tax deductible.</p>

<p>Now of course, rates have risen substantially and we are hesitant to add more to the balance with rising rates. (Existing payment for current balance is no problem).</p>

<p>So, we're looking at other means.....Son attends NJ school so we are eligible for a NJClass loan. The website makes it look pretty good. 5.9% FIXED if you autodebit the payments. 20 year term.</p>

<p>Does anyone have any firsthand knowledge of this loan?
Thanks!</p>

2

<p>I am bumping this topic because I am looking at NJClass loans and comparing them to PLUS loans. Although the NJClass rates are better, interest on PLUS loans is tax deductible. If you are a New Jersey parent and using the NJClass option, is the interest deductible from your state or federal taxes?</p>

3

<p>I had a son go to a NJ college, so I was able to take one out. The interest at the time for parent plus was 8.5 I think and this was 5.75 with a point or half-point taken off for direct payment from my checking account. I couldn’t beat that anywhere. Another small loan I paid off at the time was 5.90.
My only complaints (and it wouldn’t make me change anything) was the non-online feature, you can only do the loan application, not pay it or see your loans after they are given. The other was the long wait when calling, but you learn to call early or late. Some things might have changed, but the interest rate was wonderful.
I could deduct the interest if I remember correctly, but it wasn’t enough to make a difference at the time.</p>

4

<p>Thank you! The interest rate is now 7.62 but still better than PLUS (8.5).</p>

5

<p>We have three of these loans on my eldest son’s education at Stevens IT. He will probably have to take out one more to finish his senior year.</p>

<p>We researched a lot of different loans and this program is much better than those offered by Sallie Mae or similar.</p>

<p>I am just a bit :\ that he will be over $30 grand in debt including his federal loans, but it is what he had to do.</p>

6

<p>NJSue-
Sure, the interest paid is deductible as student loan interest.
We have received a 1099 something each year with the amount to report on federal return.
Rate we got back in 2006ish was 5.9 fixed. Still, the current 7.62 is quite good.</p>

<p>We set up the monthly debit from checking account to get discount rate.
Had not had a need to call them for any problems since loan inception.
but I do remember the wait time was considerable for calling in when we had questions during application.</p>

7

<p>The NJClass loan can also be used for OOS colleges if the OOS college accepts the loan itself. I gave a call to Purdue’s Financial Aid office and asked if they would accept it and they said yes. Too bad I don’t qualify since my parent’s don’t reach the minimum income.</p>