New Jersey passed a law in 2019 changing the way HESAA is supposed to settle with people who have defaulted on their NJCLASS loans.
In case you’re not aware, HESAA settlements for NJCLASS loans have been pretty bad for a long time. This is because HESAA would demand huge monthly settlement payments with the full contract rate of interest, reasoning that NJCLASS loans were funded by private investors who needed to be repaid.
The new law allows HESAA to settle for more reasonable payment amounts that are tied to income. Law firms representing HESAA now ask for copies of a borrower’s and co-signer’s tax returns, a month’s worth of recent pay stubs, and a monthly income/expenses statement.
While a monthly payment tied to income is a welcome change, there are still some growing pains. First, how quickly you can get your loan issues resolved appears to depend heavily on which law firm is attempting to collect your defaulted NJCLASS loan debt. Simply put, some of them move more quickly than others.
More importantly, some of the law firms collecting on NJCLASS loans have a better understanding of the new law than others. The slower-moving firms don’t seem to believe the whole “payments tied to income” thing, and they try to demand monthly payments in the same amounts as they would have before the new law was passed.
Hopefully, these issues will work themselves out over time. In the meantime, if you need help with your defaulted NJCLASS loans, you may want to schedule a consultation. Call 201-676-0722 or email weilattorney@gmail.com for a flat-fee phone consultation with attorney Jennifer N. Weil.
