What are some student loan options for residents of New Jersey?


Quick Answer

Student loan options for New Jersey residents include New Jersey College Loans to Assist State Students, a funding source covering costs that other forms of financial aid do not cover, according to the Higher Education Student Assistance Authority. New Jersey residents attending eligible undergraduate, graduate or professional schools in or outside of New Jersey can qualify for NJCLASS funds. Other options include subsidized and unsubsidized federal loans such as Stafford, PLUS, Perkins and direct consolidation loans, according to Go College.

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Full Answer

NJCLASS offerings include standard loans to undergraduate student borrowers, which they can take up to 20 years to repay, and graduate and professional student loans, explains the Higher Education Student Assistance Authority. Students must be enrolled in an institution of higher learning at least half of the time to qualify for the standard loans. Graduate and professional students can qualify for loans without verifying employment or income.

Stafford subsidized loans are interest-free until the borrowers start repaying them, while interest accrues on unsubsidized loans until the borrowers have paid the loans in full, explains Go College. Borrowers must sign promissory notes to obtain unsubsidized PLUS loans, intended for graduate or professional students, and parents of dependent students. Student residents of the Garden State who need significant financial aid can receive low-interest Perkins Loans. Borrowers owing multiple federal loans can combine them into one loan under direct consolidation loan programs.

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