N.J. Admin. Code § 9A:10-6.7 - Application procedures, disbursement, and students who transfer

(a) To borrow under the NJCLASS Loan Program, after the student has applied for Federal financial aid using the approved Federal application, the process shall be, as follows:

1. The applicant shall review the NJCLASS Application Disclosure form and complete the NJCLASS application, promissory note and self-certification form, if required. All parts of the application, promissory note and self-certification, if required by Federal law, including all related documentation, must be completed and all requested documentation must be submitted to the Authority; and

2. The Authority shall notify the eligible institution the student attends or plans to attend that the student qualifies for a loan pending certification and request the school to certify the student's eligibility for an NJCLASS Loan Program loan.

(b) The Authority shall process the application and upon approval will provide the applicant(s) an NJCLASS loan offer. The borrower will have 30 days to accept the loan. Borrowers will not receive a loan unless they accept the offer.

(c) The Authority shall provide applicants an NJCLASS Pre-Disbursement Disclosure, or other disclosures as required by Federal law.

(d) The method of disbursement is determined by an eligible institution. Loan proceeds may be disbursed by individual check, master check, or by electronic means, such as Electronic Funds Transfer (EFT). Funds disbursed by individual check to a student borrower shall be made payable to the eligible institution, sent directly to the school and may be multiply disbursed. Funds disbursed by individual check to a parent borrower shall be made payable to the parent borrower and may be multiply disbursed. If the Authority issues an individual NJCLASS Loan Program check, and the student is enrolled in a study-abroad program approved for credit and if the student requests, the loan check may be made payable to the student only.

(e) An NJCLASS Loan Program loan may be used only to cover the educational costs of attendance at the school that completes the school certification form providing school data. The school must return to the Authority any refund of NJCLASS proceeds resulting from a student's withdrawal, after satisfying any outstanding accounts receivable. If a student transfers between schools at any time, neither the student nor the parent borrower are eligible to receive proceeds from an application and promissory note for which the school certification form was completed by the previous school. If a student transfers from one school to another before a loan is fully disbursed, the student or parent borrower is not eligible for any remaining disbursements of that loan, and the student or parent borrower must notify the Authority to cancel the loan or the balance of any undisbursed portion of the loan. The student or parent borrower may submit a second application and promissory note with new cost of attendance and estimated financial assistance figures certified by the new school.

Notes

N.J. Admin. Code § 9A:10-6.7

Amended by 46 N.J.R. 2358(a), effective 12/1/2014 Amended by 48 N.J.R. 2433(a), effective 11/21/2016 Amended by 56 N.J.R. 374(a), effective 3/4/2024