2Student Loan GuideNew JerseyHigherEducationStudentAssistanceAuthorityThe Student Loan Guide provides general student loan information toassist students and their families in planning and paying for a postsec-ondary education through the use of student loans.This guide contains information that covers the Federal Loan programs, NewJersey’s state loan program-NJCLASS, and information on other alternativeprivate loan options. Our goal is to provide you with information to assist youin navigating your way through the student loan process.Our Mission:The Higher Education Student Assistance Authority (HESAA) is a NewJersey authority that provides students and families with the financial andinformational resources for students to pursue their education beyondhigh school. With roots dating back to 1959, HESAA’s singular focus hasalways been to benefit the students it serves.
3Student Loan GuideApplying for AidThe first step in the financial aid process is completion of the Free Applica-tion for Federal Student Aid (FAFSA). Students useFAFSA on the Web() to complete their applications. The information on yourFAFSA is transmitted to the schools that you list on the application and theState of New Jersey. Informationon the FAFSA assists the federal govern-ment, the colleges and the State in determining your eligibility for collegegrants, State grants, and federal financial aidBe Aware Before YOU BORROW…There are many alternatives avail-able for you to pay for college.You should explore all options, including:Grants & ScholarshipsYou should first explore all of your options for free money. Many students usestate, federal and college grants & scholarships to help pay for their educa-tion. Neither grants nor scholarships have to be repaid. Because the FAFSA isused to determine eligibility for many grants and scholarships, it is importantthat you complete your application timely. Be aware of State deadlines forapplying for State grants and Scholarships. Make sure you investigate pri-vate scholarships or community scholarships that might be available to you.Institutional AidThe term "Institutional Financial Aid" refers to any scholarship or grant awarded by theuniversity or college’s own restricted or unrestricted funding source(s). Institutionalbased financial assistance programs offered and controlled by the individual colleges,such as alumni scholarships and endowments from private donors, are referred to asinstitutional aid. Students should explore all opportunities available to them.College Savings PlansHESAA offers a state-sponsored 529 college savings plan to help familiesmeet the cost of college. Saving withNJBEST (New Jersey Better Educa-tional Savings Trust)offers many benefits, including state and federaltax-free earnings, and also offers a scholarship of up to $1,500 for those stu-dents who qualify and who attends a school in New Jersey.