Are You Prepared for the Unthinkable?

The Higher Education
Student Assistance
Authority (HESAA) is a
New Jersey authority that
provides students and
families with the financial
and informational
resources for students to
pursue their education
beyond high school. With
roots dating back to 1959,
HESAA’s singular focus
has always been to benefit
the students we serve.
If you would like to apply for a NJCLASS Loan
or to learn more
•Visit us at www.njclass.org
•Call 609-584-4480.
New Jersey Higher Education Student Assistance Authority
4 Quakerbridge Plaza
P.O. Box 538
Trenton, NJ 08625-0538
www.hesaa.org
3/16/2015
NJCLASS loans do not offer the same cancellation benefits
as Federal loans.
If a Borrower Dies
or
Resources
For more information about life and disability
insurance you should consult:
Becomes Disabled
Federal Student Loan
NJCLASS
Obligation to repay can be cancelled for
surviving parties, like co-signers.
Obligation to repay remains in effect for
surviving parties, like co-signers.
• The New Jersey Department of Banking and
Insurance at www.state.nj.us/dobi
• The American Council of Life Insurers at
www.acli.com
• Your local insurance agent.
Federal student loans cancel the student loan obligation in the event of a student’s/borrower’s death or total and
permanent disability.
Many private student loans do not offer the same cancellation protections. With NJCLASS loans, there also is no
cancellation of a student loan obligation when there are other surviving parties to the loan. To protect the other
surviving parties on the note in the event of a death/disability, the Higher Education Student Assistance Authority
strongly encourages borrowers to consider securing appropriate insurance coverage.
Insurance Options
Term life and disability insurance policies cover
needs that disappear in time such as student loan
payments. These policies can usually be obtained
for a relatively small monthly premium, particularly
when the insured is young and healthy.
A way to protect those you
leave behind
If something were to happen to you, you
would not want your loved ones to be
burdened with your student financial
expenses. Some term life and disability
insurance policies can also cover:
• Credit card debt
• Monthly living expenses
• Final Expenses
A basic plan with up to $250,000
in coverage can cost as little
as $15 a month for a young,
healthy college student or
recent graduate.
You need insurance even if
you're young and healthy.
Almost 1 in 4 of today's 20 year-olds
will become disabled before reaching
age 67.* What's more, it's easier and
less expensive to get insurance when
you're young and healthy.
*www.ssa.gov/news/press/basicfact.html