Bill Text: NJ S2466 | 2020-2021 | Regular Session | Introduced
Bill Title: Requires Higher Education Student Assistance Authority to suspend administrative wage garnishment, certain judicial proceedings, and payments on certain New Jersey College Loans to Assist State Students loans during COVID-19 state of emergency.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-05-11 - Introduced in the Senate, Referred to Senate Higher Education Committee [S2466 Detail]
Download: New_Jersey-2020-S2466-Introduced.html
Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Requires Higher Education Student Assistance Authority to suspend administrative wage garnishment, certain judicial proceedings, and payments on certain New Jersey College Loans to Assist State Students loans during COVID-19 state of emergency; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the suspension of certain payments and collection activities under the New Jersey College Loans to Assist State Students Loan Program and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law, rule, or regulation to the contrary, upon the effective date of this act and until the termination of the state of emergency under Executive Order No. 103 of 2020 by the Governor, the Higher Education Student Assistance Authority shall suspend principal and interest payments due on a New Jersey College Loans to Assist State Students (NJCLASS) Loan Program loan, if the borrower of the loan demonstrates that he has been adversely impacted by the coronavirus disease 2019 or by actions taken in response to the coronavirus disease 2019. A borrower seeking suspension of principal and interest payments pursuant to this subsection shall submit an application to the authority in accordance with application procedures and requirements prescribed by the authority. The authority shall grant a suspension of principal and interest payments if a borrower is unable to make the payments, or the borrower's ability to make the payments is adversely impacted, due to reasons including, but not limited to, any of the following:
(1) the borrower is unemployed or is otherwise not able to work because of a closure of the borrower's place of employment, a closure of the school or place of care of a child of the borrower, or a closure of the place of care of a family member of the borrower in need of the care of the borrower, as a result of the coronavirus disease 2019;
(2) the borrower experiences a reduction in work hours, has lost wages, or otherwise experiences financial hardship as a result of coronavirus disease 2019;
(3) the borrower is infected with the coronavirus disease 2019 or experiences temporary total disability, as defined pursuant to section 3 of P.L.2016, c.71 (C.18A:71C-31.3), as a result of becoming infected with the coronavirus disease 2019; or
(4) the borrower is recommended, directed, or ordered under isolation or quarantine by a licensed healthcare practitioner, the Commissioner of Health, or other public official as a result of the coronavirus disease 2019 or the borrower cares for a family member in quarantine as a result of the coronavirus 2019.
Interest on any NJCLASS Loan Program loan, the borrower of which is granted a suspension of principal and interest payments pursuant to this subsection, shall not accrue during the period of non-payment.
b. (1) During the period in which principal and interest payments are suspended for NJCLASS Loan Program loan borrowers granted a suspension pursuant to subsection a. of this section, the Higher Education Student Assistance Authority shall ensure that, for the purpose of reporting information about the borrower to a consumer reporting agency, any payment that has been suspended is treated as if it were a regularly scheduled payment made by the borrower.
(2) Notwithstanding the provisions of any law, rule, or regulation to the contrary, the authority shall, upon the effective date of this act and until the termination of the state of emergency under Executive Order No. 103 of 2020 by the Governor, consider each payment for which a borrower was granted a suspension pursuant to subsection a. of this section as if the borrower had made a payment for the purpose of payments under the Repayment Assistance Program established pursuant to section 1 of P.L.2019, c.62 (C.18A:71C-31.4), the Household Income Affordable Repayment Plan established pursuant to section 2 of P.L.2019, c.62 (C.18A:71C-31.5), and any applicable State student loan redemption or loan forgiveness program in which the borrower may be participating and for which the borrower's NJCLASS Loan Program loan is eligible.
c. Notwithstanding the provisions of any law, rule, or regulation to the contrary, the Higher Education Student Assistance Authority shall, upon the effective date of this act and until the termination of the state of emergency under Executive Order No. 103 of 2020 by the Governor, suspend collections made against delinquent NJCLASS Loan Program loan borrowers through administrative wage garnishment. The authority shall also suspend the processing of administrative wage garnishment for any NJCLASS Loan Program loan borrower who may become delinquent during the period of time in which the Public Health Emergency and State of Emergency established pursuant to Executive Order No. 103 of 2020 is in place.
2. Upon the effective date of this act and until the termination of the state of emergency under Executive Order No. 103 of 2020 by the Governor, there is appropriated from the General Fund to the Higher Education Student Assistance Authority an amount of up to $17 million per month to effectuate the provisions of this act.
3. This act shall take effect immediately and shall be retroactive to March 9, 2020. This act shall expire upon the termination of the state of emergency under Executive Order No. 103 of 2020 by the Governor.
STATEMENT
This bill provides temporary relief for certain New Jersey College Loans to Assist State Students (NJCLASS) Loan Program borrowers until such time as the state of emergency established pursuant to Executive Order No. 103 of 2020 is terminated.
Under the bill, the Higher Education Student Assistance Authority (HESAA) will grant a suspension of principal and interest payments if an NJCLASS loan borrower is unable to make those payments, or if the borrower's ability to make the payments is adversely impacted, due to reasons including, but not limited to: the borrower is unemployed or otherwise not able to work because of a closure of the borrower's place of employment, a closure of the school or place of care of a child of the borrower, or a closure of the place of care of a family member of the borrower in need of care, due to the coronavirus disease 2019; the borrower experiences a reduction in work hours, lost wages, or financial hardship as a result of coronavirus disease 2019; the borrower becomes infected with the coronavirus disease 2019 or experiences temporary total disability as a result of becoming infected with the coronavirus disease 2019; or the borrower is recommended, directed, or ordered under isolation or quarantine by a licensed healthcare practitioner, the Commissioner of Health, or other public official as a result of the coronavirus disease 2019 or the borrower is caring for a family member in quarantine as a result of the coronavirus 2019. During the period of suspension of payments, the bill provides that interest will not accrue on the loan.
The bill also requires HESAA to suspend collections made against delinquent NJCLASS borrowers through administrative wage garnishment. HESAA will also suspend the processing of administrative wage garnishment for any borrower who may become delinquent during the period of time in which the state of emergency established pursuant to Executive Order No. 103 of 2020 is in place. The bill provides that HESAA will direct the collection counsel that it contracts with, or otherwise retains, to seek a suspension of any matters pending before any courts of competent jurisdiction.
Lastly, the bill includes provisions to ensure that: 1) HESAA reports to credit reporting agencies that any payment that has been suspended is treated as if it were a regularly scheduled payment made by the borrower; and 2) any payment that has been suspended is treated as if the borrower had made a payment for the purpose of payments under certain NJCLASS loan relief, redemption, and forgiveness programs.
