Downey Bill to Combat Unreasonable Student Loan Debt is Now Law

Legislation Assembly Democrats Shavonda Sumter, Mila Jasey, Elizabeth Maher Muoio, Joseph Lagana, Joann Downey and Daniel Benson sponsored to combat student loan debt in New Jersey is now law.

"The only concern a college student should have after graduating is choosing which job will lead them closer to their goals," said Sumter (D-Bergen/Passaic). "It has become the norm for families and students to take on an overwhelming amount of debt to pursue educational goals. This new law will increase transparency under NJCLASS loan programs, better educate families on loan repayment options and requirements and help families understand how much they can realistically handle in student loans."

The new law (A-4238) requires the New Jersey Higher Education Student Assistance Authority (HESAA) to provide an annual report on the New Jersey College Loans to Assist State Students (NJCLASS) program to the governor and the legislature. The law also directs HESAA to develop a student loan comparison information document to allow borrowers to compare an NJCLASS loan with loans available under the federal student loan programs and provide examples of loan repayment under the NJCLASS program.

"We want students to graduate and be able to shoot for their dreams without being hampered by years of loan repayments that hinder their productivity," said Downey (D-Monmouth). "These changes will make the state's higher education authority a stronger advocate for our students."

The measure received unanimous approval from the legislature before being signed into law by the governor.