TRENTON, NJ — Assemblymen William F. Moen, Jr. of District 5 and Louis D. Greenwald of District 6 have pre-filed Assembly No. 2106 for the 221st Legislature session in 2024. The bill proposes the creation of student loan refinancing programs by county improvement authorities, offering financial relief to eligible borrowers in New Jersey.
Designed to provide lower interest rates for refinancing existing student loans, the initiative targets both student-borrowers residing in the county and parent-borrowers who are New Jersey residents or are primarily employed in the state. Eligibility extends to loans for students residing within the county, aiming to ease the financial burden of higher education.
County improvement authorities will have the autonomy to set refinancing interest rates and terms, ensuring they cover the principal and interest of bonds issued to finance the program. Moreover, the bill mandates offering at least two repayment plan options, including deferment or forbearance features, when feasible.
The legislation explicitly prohibits refinancing loans that could cause undue hardship for borrowers, based on their income and expenses. Additionally, it stipulates that refinanced student loans cannot be discharged in bankruptcy, safeguarding the program’s financial stability.
A unique provision of the bill requires that borrowers have access to a live representative knowledgeable about the refinancing program, ensuring transparency and support for applicants navigating the refinancing process. This move by Assemblymen Moen and Greenwald represents a significant step towards alleviating the student debt crisis in New Jersey, providing a tangible solution for residents burdened by educational loans.