State of New Jersey Higher Education Student Assistance Authority Fall 2016/Spring 2017 New Lower Rates Arrive June 1st 2016 NJCLASS is for all students attending NJ schools or NJ residents attending out-of-state schools. NJCLASS 10-Year Variable Rate currently at 4.89%1 / 4.89% APR ü ü ü ü ü ü Immediate repayment of principal & interest while in school No Loan Administration fee 10-Year repayment term Rate is capped at 9.50% Rate and payment will vary Rate determined by the 3 NJCLASS 10-Year NJCLASS 15-Year NJCLASS 20-Yr Fixed Interest Rate Starts at 4.48%2 / 5.52% APR Fixed Interest Rate Starts at Fixed Interest Rate Starts at 5.19%2 / 6.10% APR 7.15%2 / 8.23% APR ü Immediate repayment of principal & interest while in school ü ü 3% Loan Administration fee3 10-Year repayment term ü Choose either immediate repayment of principal & interest at 5.19%2 / 6.10% APR or interest only payments while in school at 5.19%2 / 6.20% APR 3% Loan Administration ü fee3 15-Year repayment term ü   month LIBOR+ 4.25%1 • Immediate Repayment of Principal & Interest • Monthly Interest Payments • Deferral of Principal and Interest 1The One variable1 rate option with NO Loan Administration fee. Never a penalty for pre-payment. 24 Year track record of providing higher education financing. Must be enrolled at least half-time in a degree or certificate program. Principal and interest repayment starts 30 days after leaving school for the full deferment and interest-only repayment option. 10 year variable rate option currently in effect is based on the 3 month LIBOR for 2/26/2016, published in the Wall Street Journal on 2/29/2016 which became effective on 5/1/2016. ü ü Fixed Interest Rate starts at: Immediate Repayment – 5.19%2 / Full deferment while 6.01% APR Interest-only while in school – enrolled at least half time 5.19%2 / 6.03% APR in school Full Deferment While Enrolled at 3% Loan Administration 3 Least Half Time 7.15%2 / 7.96% APR fee 20-Year repayment term ü No income or co-signer required   ü ü 3% Loan Administration fee3 25-Year Repayment Term   Application Process:   ü Student or Parent is the Borrower ü Must File a FAFSA ü Apply Online Anytime ü Instant Credit Decision ü Proof of income or co-signer required (excludes Graduate/Professional) ü E-signature Option ü Safe & Secure Process 2016-17 Features: ü Four fixed2 interest rates with choice of varying repayment options. ü ü ü ü ü ü NJCLASS Graduate/Professional NJCLASS Interest Rate Step Up & Loan Administration Fee: 2The rates listed above are a reduced interest rate that NJCLASS offers for the first 12 monthly payments of principal and interest for the full deferral option in the Fixed Rate Program and for the first 48 monthly payments of principal and interest for all other fixed rate loans. This reduction assists borrowers in repaying more principal during these early months when the loan balance is highest. The result is a lower overall cost to the borrower. For Fixed Rate full deferral option loans, the rate steps up on the 13th month of repayment and for immediate repayment of principal & interest and monthly payments of interest only, the rate steps up on the 49th month of principal and interest payment. The interest rate increases by 0.75% and stays at that rate for the remainder of the loan. For Graduate/Professional loans, the 0.75% interest rate step up occurs in the 49th month of principal and interest payment for all repayment options. 3The 3% fee for the fixed rate loans is deducted from each disbursement and the net amount of the loan is disbursed to the institution. See www.hesaa.org/njclass   or  www.njclass.org  for more information on full terms and conditions. All loan options are limited and subject to availability. Funding is limited, submitting an application does not guarantee funding or   repayment option choice. Borrower's repayment option choice is not confirmed until the TILA Loan Offer is accepted by the borrower. Therefore, it is imperative that the borrower ask the financial aid office to certify their NJCLASS application as soon as possible after they apply. www.hesaa.org    or  www.njclass.org   (800) 792-8670 Revised 6/6/2016 Now  the  Parent  PLUS  loan  is  not  your  only  option  –   look  to  your  State  of  New  Jersey  Premiere     NJCLASS  loan  for  your  funding  needs!   Compare  2016-­‐17  Rates  State  of  New  Jersey  NJCLASS  vs.  Federal  PLUS     NJCLASS  10  Year-­‐  Fixed  Rate  Loan†     The  student  or  parent  is  the  borrower.    A   parent,  relative  or  other  US  Citizen  or   eligible  Non-­‐Citizen  may  co-­‐sign  the  loan.   Loan  Type   NJCLASS  10  Year-­‐  Variable**  Rate  Loan   Who  Can  be  a  Party  to  the  Loan   The  student  or  parent  is  the  borrower.    A  parent,   relative  or  other  US  Citizen  or  eligible  Non-­‐Citizen   may  co-­‐sign  the  loan.   Repayment  Option   Immediate  repayment  of  principal  &  interest   Immediate  repayment  of  principal     &  interest   Immediate  repayment  of  principal     &  interest   Loan  Type   Variable   Fixed   Fixed   Loan  Amount  Requested   $10,000   $10,000   $10,000   Total  Amount  Borrowed  (Including  Fees)   $10,000   $10,300   $10,426.20   Interest  Rate/APR   4.89%**/4.89%   4.48%†/5.52%   6.31%/7.25%   Loan  Fee   0%   3.00%   4.262%   Years  in  Repayment   10  (120  months)   10  (120  months)   10  (120  months)   $109.33   $117.38   $109.33   $117.38   $2,942.14   $4,085.83   at  9.5%  maximum  variable  rate     $15,522.97.  if  applicable   $12,942.14   $14,085.83   $427.68  per  month   $50,706.64  over  life  of  loans   $437.32  per  month   $51,768.56  over  life  of  loans   $469.52  per  month   $56,343.32  over  life  of  loans   Payment  while  in  School  (Assuming  One  Loan  Only)   Payment  when  out  of  School  (Assuming  One  Loan  Only)   Total  finance  charges  &  administrative  fee       Loan  (Assuming  One  Loan  Only)   Total  Cost  of  Loan   Estimated  cost  of  borrowing  over  4  years,  at  10,000  per   year,  assuming  that  the  interest  rate  is  the  same  from   year  to  year.   Currently    $106.92   at  9.5%  maximum  variable  rate  $130.72  per  month  if   applicable   Currently    $106.92   at  9.5%  maximum  variable  rate  $130.72  per  month  if   applicable   Currently    $2,676.66   at  9.5%  maximum  variable  rate  $5,522.97.  if  applicable   Currently    $12,676.66   Federal  PLUS  Loan   Parent  Only   †Fixed Interest Rate Only - NJCLASS reduces the interest rate during school and for the first 12 or 48 monthly payments of principal and interest based on the repayment option you select. This reduction assists borrowers in repaying more principal during these early months when the loan balance is highest. The result is a lower overall cost to the borrower. In the 13th or 49th month of principal and interest repayment, your interest rate increases by 0.75% and stays at that rate for the remainder of the loan. ** The 10 year variable rate option currently in effect is based on the 3 month LIBOR for 2/26/2016, published in the Wall Street Journal on 2/29/2016 which became effective on 5/1/2016. The interest rate is capped at 9.50%. www.hesaa.org  or  www.njclass.org   (800) 792-8670 Revised 6/6/2016