N.J. Admin. Code § 9A:10-6.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 9A:10-6.6 - Loan amounts

(a) The amount borrowed for an NJCLASS Loan Program loan shall not exceed a student's estimated cost of attendance at the eligible institution minus all other financial assistance for which the student is eligible for the academic period for which the loan is intended. This means that an eligible institution shall determine a student borrower's loan amount eligibility for Federal Direct loans prior to determining a student borrower's loan amount eligibility for an NJCLASS Loan Program loan. This eligibility determination excludes eligibility for Federal Direct PLUS loans.

1. When establishing the maximum annual loan amount for a student borrower, the authority shall deduct the maximum amount of Federal Direct Subsidized Loans available to the student from the available NJCLASS loan amount. If the available interest rate for Federal Direct Unsubsidized Loans is lower than the interest rates available to the student under the NJCLASS Loan Program, the authority shall deduct the maximum amount of Federal Direct Unsubsidized Loans available to the student from the available NJCLASS loan amount. The authority may deduct the maximum amount of Federal Direct Unsubsidized Loans available to the student from the available NCLASS loan amounts when Federal borrower benefits are more advantageous to the student.

(b) In the case of a student who first borrows an NJCLASS Loan Program loan after August 7, 2017, the effective date of P.L. 2017, c. 198, the maximum total NJCLASS Loan Program loan amount that may be made for the benefit of that student shall not exceed the borrowing cap. The borrowing cap was set at $ 150,000 in 2017 and shall be increased for each academic year over the prior year by the regression-based index value of the Higher Education Price Index published at http://www.commonfund.org/higher-education-price-index.

N.J. Admin. Code § 9A:10-6.6

Amended by 46 N.J.R. 2358(a), effective 12/1/2014

Amended by 56 N.J.R. 374(a), effective 3/4/2024