Testa Calls on State to Help Borrowers Struggling with NJ Student Loans During COVID-19 Outbreak
Urges Governor to Temporarily Halt Monthly Payments
Senator Michael Testa Jr. today said the Governor’s announced assistance for students burdened by payments on NJCLASS college loans during the COVID-19 crisis was “a good first step, but more needs to be done to help young borrowers.”
Testa called for freezing student loan interest and extending payment deadlines.
“Graduates who leveraged New Jersey student loans to pay for the escalated costs of college and are just embarking on their careers are now facing possible job loss and other economic hardships resulting from the coronavirus threat,” said Testa (R-21). “In addition to all the usual living expenses, their loan payments can consume a large part of the monthly budget. The Murphy Administration can provide real financial relief by following the lead of the federal government and suspend all payments on state-held student loans during the virus outbreak.”
In an effort to fight the spread of the disease, schools, bars, restaurants and casinos have been closed, and residents have been urged to avoid close contact by social distancing and follow the CDC’s recommendations.
“We’re calling on the Governor to call ‘time out’ on these loan payments,” Testa noted. “This crisis will pass, life will return to normal, and the jobs will come back. That’s when we should re-start the payments.”
More than 890 cases of coronavirus have been confirmed in New Jersey, and 11 people have died.