N.J.A.C. 9A:10-6.18 NEW JERSEY ADMINISTRATIVE CODE Copyright (c) 2016 by the New Jersey Office of Administrative Law *** This file includes all Regulations adopted and published through the *** *** New Jersey Register, Vol. 48, No. 11, June 6, 2016 *** TITLE 9A. HIGHER EDUCATION CHAPTER 10. STUDENT LOAN AND COLLEGE SAVINGS PROGRAMS SUBCHAPTER 6. THE NEW JERSEY COLLEGE LOANS TO ASSIST STATE STUDENTS (NJCLASS) PROGRAM: POLICIES AND PROCEDURES Go to the New Jersey Administrative Code Archive Directory N.J.A.C. 9A:10-6.18 (2016) ยง 9A:10-6.18 Rehabilitation (a) Effective no earlier than June 1, 1999, the Authority may offer a rehabilitation program for NJCLASS Loan Program loans and NJCLASS Consolidation Loans. If the Authority offers a rehabilitation program for these loans, the Authority shall notify borrowers of the availability of this program. In the event the Authority offers a rehabilitation program for NJCLASS Loan Program loans or NJCLASS Consolidation Loans, a borrower who has defaulted on an NJCLASS Loan Program loan or NJCLASS Consolidation Loan is permitted to rehabilitate the loan with an enforceable promissory note and remove that loan from default status, provided the borrower satisfies the requirements of (c) below. A defaulted loan may be rehabilitated only once. (b) An NJCLASS Loan Program loan or NJCLASS Consolidation Loan is considered to be rehabilitated only after the borrower has made one voluntary full payment each month and the payment is received by the Authority within 15 days of the scheduled due date for 12 consecutive months, with no deferments or forbearances permitted during the 12-month period. (c) An NJCLASS borrower may request the rehabilitation of the borrower's defaulted NJCLASS Loan Program loan or NJCLASS Consolidation Loan held by the Authority. The borrower shall make one voluntary full payment each month for 12 consecutive months to be eligible to have the defaulted loans rehabilitated. For purposes of this section, "full payment" means the minimum acceptable monthly payment as defined in N.J.A.C. 9A:10-6.11(d). "Voluntary payments" are those made directly by the borrower regardless of whether there is a judgment against the borrower, and do not include payments obtained by income tax offset, garnishment, or income or asset execution. (d) The maximum repayment period for a rehabilitated NJCLASS Loan Program loan or NJCLASS Consolidation Loan shall be the same as that of the loan prior to default. A borrower who wishes to rehabilitate a loan on which a judgment has been entered must sign a new promissory note. The maximum repayment period of the new promissory note shall be the same as that of the NJCLASS Loan Program loan or NJCLASS Consolidation Loan prior to default. Once an NJCLASS Loan Program loan or NJCLASS Consolidation Loan subject to a judgment has been rehabilitated, the Authority shall have the judgment marked satisfied. (e) The Authority shall report to a national credit bureau within 30 days of the date the loan was rehabilitated that the loan is no longer in a default status, and is now in a "current was collection account" status. (f) The Authority may elect to hold the rehabilitated loan directly, or transfer the loan to another lender, including, but not limited to, the trustee of the trust estate held for the benefit of NJCLASS Loan Program and NJCLASS Consolidation Loan bondholders. HISTORY: Amended by R.1998 d.534, effective November 16, 1998. See: 30 N.J.R. 2805(a), 30 N.J.R. 4041(b). Rewrote (a), (c) and (d); in (b), deleted "reasonable and affordable" following "voluntary", and added ", with no deferments or forbearances permitted during the 12 month period" at the end; and in (e), added ", and is now in a 'current was collection account' status" at the end. Amended by R.2000 d.447, effective November 6, 2000. See: 32 N.J.R. 2192(a), 32 N.J.R. 3987(a). In (c), amended the N.J.A.C. reference. Amended by R.2014 d.181, effective December 1, 2014. See: 46 N.J.R. 1398(a), 46 N.J.R. 2358(a). Rewrote the section.