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students credit, and their parents credit if they co-signed. Wages can be
garnished and tax refunds withheld, all without due process.
Senators Sandra B. Cunningham, D-Hudson, Tom Kean Jr. R-Union, Morris,
Somerset, and Senator M. Teresa Ruiz D-Essex said Monday they will introduce a
bill that would require a court order before HESAA could take those actions.
Mazzeo will sponsor that bill in the Assembly.
The ProPublica story said the number of lawsuits filed by HESAA against
borrowers has increased from 97 in 2008 to almost 1,700 in 2015.
David McMillan of Legal Services of New Jersey said NJCLASS student loans are
the most difficult consumer problem for lower-income families because they are
not discharged in bankruptcy and must still be repaid. He said they recommend
creating an income-based repayment plan and a rehab program that would
allow those in default to begin making payments again.
Some of those who testified said the loans fell into default quickly because
borrowers could not find a job right after graduation, and payments were due
almost immediately. Deborah Carney said her family was given misleading and
contradictory information about the loan program and repayment options.
HESAA was a loan shark, she said.