Trenton, NJ - The New Jersey Higher Education Student Assistance Authority (HESAA) announced today that, in its continuing efforts to maximize access to higher education for all students, HESAA will once again pay the default fee required on Federal student loans where the fee is not covered by the lender.
In 1996 the federal government began assessing a 1% default fee against federal student loans to offset the cost of potential defaults. This effectively reduces the amount that the student actually receives to pay college costs. "At HESAA, we know every dollar for higher education counts," said Michael Angulo, HESAA's Executive Director. "The fee could mean the difference between being able to buy books or paying for a portion of a meal plan," he added.
As a non-profit entity, HESAA reinvests its operating revenue towards enhancing financial aid programs, services and outreach. "New Jersey ranks #1 in the nation with an 85% high school graduation rate. Our students are doing their part, we need to do ours by making higher education affordable and accessible," said Executive Director Angulo. For the upcoming academic year, HESAA estimates that it will cover approximately $2.5 million in fees that would otherwise have been charged to students.
To date, HESAA has saved New Jersey students nearly $41 million in default fees.
HESAA reaches out to thousands of students, families and student aid professionals, every year, delivering the message of opportunity and affordability of a college education. HESAA's comprehensive outreach efforts include workshops for guidance counselors, high school presentations, borrower entrance and exit counseling, financial literacy workshops, and direct communication with financial aid applicants and their families through HESAA's client services "800" hotline. During peak application periods, HESAA will respond to over 250,000 calls through the hotline.
By investing in New Jersey's students, HESAA helps to ensure that New Jersey continues to thrive in the global marketplace.
Since 1959, HESAA, a non-profit, state designated Authority, has delivered over $18 billion in financial aid. Each year, over 1 million students receive assistance from outreach programs and aid programs HESAA administers including TAG, the Part-time TAG for County College Students, NJSTARS and II, the Garden State Scholars programs, the Federal Family Education Loan program, NJCLASS, and NJBEST. For additional information about HESAA please visit our Web site at www.hessa.org or call our toll-free hotline at 800-792-8670.
Posted 03/04/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
