Bill Text: NJ AR34 | 2010-2011 | Regular Session | Introduced
Bill Title: Memorializes President and Congress to cap interest rates and fees associated with private student loans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Higher Education Committee [AR34 Detail]
Download: New_Jersey-2010-AR34-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman ANTHONY CHIAPPONE
District 31 (Hudson)
SYNOPSIS
Memorializes President and Congress to cap interest rates and fees associated with private student loans.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Assembly Resolution memorializing the President and Congress to cap interest rates and fees associated with certain student loans from private lenders.
Whereas, Access to quality postsecondary education for New Jersey residents is vital to the long-term health of the State's economy; and
Whereas, Without student financial aid programs which include grants and loans, the cost to participate in higher education programs would be prohibitive for many individuals; and
Whereas, The annual increase in college costs has outpaced the rate of inflation and increases in federal and State financial aid, resulting in a growing reliance on loans to offset higher education expenses; and
Whereas, The Project on Student Debt, an initiative of the Institute for College Access and Success, has indicated that roughly 67% of New Jersey students who graduated in 2007 accumulated an average higher education-related loan debt of $21,200, more than double the average college loan debt of 10 years prior; and
Whereas, Data from the National Center for Education Statistics show that the percentage of undergraduate students who borrowed private student loans jumped from 5% in 2003-2004 to 14% in 2007-2008; and
Whereas, While federal law sets the maximum interest rate and fees that lenders may charge for federally guaranteed student loans, private student loans that are not federally guaranteed do not have such limits; and
Whereas, The interest rates and fees on the private student loans make enrollment in institutions of higher education and the benefits associated with the receipt of a college education out of reach for many of this State's citizens; and
Whereas, The availability of student financial aid in the form of grants, federal loans, and private student loans with reasonable interest rates, fees, and conditions is crucial to the ability of many of New Jersey's students to obtain a higher education; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The General Assembly of the State of New Jersey respectfully memorializes the President and Congress to enact laws to cap the interest rates and fees charged on private student loans.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk thereof, shall be transmitted to the President and Vice-President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.
STATEMENT
This Assembly resolution memorializes the President and Congress to enact laws to cap the interest rates and fees charged by private lenders for student loans.
The Project on Student Debt, an initiative of the Institute for College Access and Success, has indicated that roughly 67 percent of New Jersey students who graduated in 2007 accumulated an average higher education-related loan debt of $21,200, more than double the average college loan debt of 10 years prior. Also, data from the National Center for Education Statistics show that the percentage of undergraduate students who borrowed student loans from private lenders jumped from 5 percent in 2003-2004 to 14 percent in 2007-2008.
While federal law sets the maximum interest rate and fees that lenders may charge for federally guaranteed student loans, private student loans that are not federally guaranteed may exceed those limits. Given the increasing reliance on private student loans, the ability of New Jersey residents to obtain these loans with reasonable interest rates and fees is crucial to maintaining access to higher education, which in turn impacts on the vitality of the State's economy.
