N.J. Admin. Code § 9A:10-6.3
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
"Annual income" means the applicant's income as reported on the application for an NJCLASS Loan Program Loan, or NJCLASS Consolidation Loan or Refinance Loan. Annual income is subject to verification by the Authority through documentation including, but not limited to, Internal Revenue Service tax return transcripts and pay stubs.
"Authority" means Higher Education Student Assistance Authority.
"Co-borrower" means an individual who is a party to the loan. The co-borrower assumes full liability for the debt, including interest charges, late fees, and collection costs. The co-borrower is subject to all of the same collection methods as the borrower and the lender can collect the debt from the co-borrower without first trying to collect from the borrower.
"Cohort default rate" means the percentage of William D. Ford Federal Direct Loan Program (Direct Loan) borrowers who default by the end of the second Federal fiscal year following the Federal fiscal year in which they entered repayment on their loans, unless otherwise defined by the United States Department of Education. The United States Department of Education calculates this rate annually to determine the default experience of students who attended a particular school during a particular period of time.
"Cosigner" means an individual who signs a promissory note and agrees to repay the loan in the event the borrower does not. The cosigner assumes full liability for the debt, including interest charges, late fees, and collection costs. The cosigner is subject to all of the same collection methods as the borrower and the lender can collect the debt from the cosigner without first trying to collect from the borrower.
"Delinquency" means a payment on an NJCLASS Loan Program loan, NJCLASS Consolidation Loan, or Refinance Loan made late. Delinquency begins the first day after the due date of the first missed payment that is not later made. The due date of the first payment is established by the Authority.
"Eligible institution" means a public or private nonprofit institution eligible for Title I V, Higher Education Act of 1965 assistance, approved or licensed by OSHE, or its equivalent, in another state or country and accredited by a nationally recognized accrediting association and having an annual cohort default rate of 25 percent or less. Eligible institution shall also include proprietary institutions eligible for Title IV, Higher Education Act of 1965 assistance and having an annual cohort default rate of 25 percent or less. An eligible institution for purposes of the NJCLASS Graduate/Professional Students Program shall have a lower cohort default rate threshold, as set forth at N.J.A.C. 9A:10-6.4(c)2.
"Fixed rate" means a predetermined interest rate percentage that is set at the origination of the loan. NJCLASS Loan Program Loan rates are determined by the bond indentures and may include a step-up to the percentage charged after a predetermined number of months.
"HIARP" means the Household Income Affordable Repayment Plan, with eligibility requirements set forth at N.J.A.C. 9A:10-6.11(i), that provides repayment relief for Standard NJCLASS Loan borrowers who have exhausted their eligibility for RAP and continue to face economic hardship.
"In-school period" means the period in which a student is enrolled at an eligible institution on at least a half-time basis as certified by the institution.
"Lender" means Higher Education Student Assistance Authority or its agent for the purposes of this program.
"MedNJ" means an NJCLASS program targeted for medical and dental students working toward an MD, DO, DDS or DMD degree offering a fixed interest rate, flexible repayment options, a 25-year repayment term and a special three-year residency deferment. The provisions governing NJCLASS loans in this subchapter shall apply to MedNJ loans unless the subchapter provides otherwise.
"NJCLASS Consolidation Loan" means a new NJCLASS loan that discharges previous NJCLASS Loan Program loans. NJCLASS loan consolidation enables a borrower with several loans to obtain one loan with one repayment schedule and one interest rate.
"NJCLASS Graduate/Professional Students Program" means an NJCLASS program targeted for graduate and professional students, with eligibility requirements specially tailored for such students, as set forth in N.J.A.C. 9A:10-6.4(c). The provisions governing Standard NJCLASS loans in this subchapter shall apply to NJCLASS Graduate/Professional Students loans unless this subchapter otherwise provides.
"NJCLASS Loan Program" means the New Jersey College Loans to Assist State Students Loan Program and encompasses all loans offered under the NJCLASS name, except for the NJCLASS Consolidation Loan and the Refinance Loan.
"OSHE" means the Office of the Secretary of Higher Education, a State higher education policy-making agency presided over by the Secretary of Higher Education who is a member, ex-officio, of the Authority Board. OSHE's statutory responsibilities include final administrative decisions over institutional licensure and university status in this State.
"Parent borrower" means a student's biological or adoptive mother or father or the student's stepparent, if the biological or adoptive parent has remarried at the time of application, who applies for and receives an NJCLASS Loan Program loan.
"RAP" means the Repayment Assistance Program, with eligibility requirements set forth at N.J.A.C. 9A:10-6.11(h), which provides two years of repayment relief for Standard NJCLASS Loan borrowers facing economic hardship.
"Refinance Loan" means a new loan that pays off one or more previous NJCLASS Loan Program loans, NJCLASS Consolidation Loans, Federal Parent PLUS loans, and qualified private student loans. Refinance Loans enable a borrower with one or more existing loans to obtain one loan with one repayment schedule and one interest rate.
"Rehabilitation" (of a defaulted NJCLASS loan) means a process by which a borrower may bring an NJCLASS Loan Program loan, an NJCLASS Consolidation Loan, or a Refinance Loan out of default for the limited purposes of meeting the requirements of Title VI of the Federal Economic Growth, Regulatory Relief, and Consumer Protection Act, Pub. L. 115-174, by adhering to specified repayment requirements.
"Standard NJCLASS Loan" means the primary loan offered by the Authority, which is offered to both graduate and undergraduate students.
"Student borrower" means an undergraduate or graduate student who applies for and receives an NJCLASS Loan Program loan or NJCLASS Consolidation Loan.
"Temporarily totally disabled" means that an individual is unable to work and earn money or attend school during a period needed to recover from injury or illness. Other than a student borrower, an individual shall not be considered temporarily totally disabled if he or she continues to receive an equal or greater amount of income from the source of income that was used to meet the minimum income requirements at the time the loan was approved.
"Totally and permanently disabled" means the condition of any individual who: has been determined by the United States Secretary of Veterans' Affairs to be unemployable due to a service-connected disability; is eligible for Social Security Disability Insurance or Supplemental Security Income and whose next scheduled disability review will be five to seven years or more from the date of the individual's last Social Security Administration disability determination; or is unable to work and earn money or attend school because of any medically determinable physical or mental impairment, as certified by a doctor of medicine or a doctor of osteopathy who is legally licensed to practice in the United States, that is expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months.
"Variable rate" means an interest rate that is reset at predetermined intervals. The adjustments are determined by a specific index as specified in the bond indentures.
N.J. Admin. Code § 9A:10-6.3