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Russeii 

06/13/2013 0153 PM
NJC Loan Forgiveness Requests (Borrower passed away White In Schooi oniy)

   

FYL,
Technically, NJ Ciass does not have a teen Vargiveness (or borrowers who died white In

sensor Regulations state costgner or coborrower becomes the next responsible party and they are
required to remit Cosigners/Co-borrowers are eligibie to appiy ior financiai hardship if the borrower

died
However, Exec Management reviews loan torgiveness tor studenVstudent borrowers who died while 'in

school.

 

Died in Schaak

If student borrower passes away enrolied In school. cosigners (co-borrowers/ioint casigners)
automaticaiiy become the next responsibie party to remit payment Occasionally' we do receive requests
tor Loan torgiveness due to death ofa student/student borrower ifa cosigner wants to appiy [or Loan

Forgiveness. advise the cosvgner oi the toilowtng
Terms and Conditions state upon death of a borrower, the cosigner automaticaliy become the next

responsvbie party on the loan
Student or Student Borrower had to be enroiled in sonooi at ieast haif time or time at the time of

death

ow. Russ sends

Office will send letter explaining the process. I will explain what the letter entails bel
the letter. .
0 N0 guarantees that debt will be forgiven. Also, any debt that is forgiven is considered taxable income

and 1099 is mailed when all others are mailed in January.
Russ sends out a letter

giveness (while borrower was in school),

Once we receive a request for Loan For

explaining the following:
greement

Condolences on the loss of the borrower. . 
Cosigners (or co-borrowers) are responsible to pay the debt, pomts them to their Signed a I
forgiveness, complete the attached documents and return to the office.

0
If wants to apply for loan
Additional information may be requested.
de by Executive Staff only.

0 All loan forgiveness decisions are ma
There is no set time limit on the reviews either. It can take several weeks or longer. Additional docs may
be requested at any time during the review period

an forgiveness when asked. All

the cosigner/coborro wer about lo
d/ed by Ex Management once all

Only advise
NJC/ass Loan Forgiveness requests are han

requested documents are received

N0 LOAN VENESS will be considered when
graduation. Cosigners/Co-borro wers are eligible for

the student borrower passed away after
hardship relief under the regulations

Thanks

Robert Laird
Program Officer

Servicing Collections

NJ Higher Education Student Assistance Authority

609-584-4488 Fax: 609-588-7285