Student Loan Relief Bill Clears NJ Legislature

New Jersey — A bill establishing performance quality standards for colleges and career programs cleared a divided legislature, advancing to the governor's desk, the New Jersey Assembly Democrats said in a news release.

Sponsored by Assembly Democrats Mila Jasey, Annette Quijano and Britnee Timberlake, the legislation, which aims to prevent borrowers from being saddled with "unsustainable" student loan debt, received a favorable vote — 46-31 in the Assembly and 21-17 in the Senate — in June, the release said.

New Jersey borrowers have an average of $33,563 outstanding in federal and private student loan debt, Student Loan Hero researchers found last year. In total, residents in the state owe $48.8 billion.

Setting these minimum performance standards would be the Secretary of Higher Education for institutions of higher learning and degree-granting proprietary schools, and the Commissioner of Labor and Workforce Development for private career schools, the bill said.

Standards must consider the ratio of tuition and fees charged to students in the program compared to the anticipated earnings of workers employed in the specific occupation for which the program prepares students.

If a program fails to meet the standard, the state government offices are required to suspend or revoke the institution's license to award a certificate, diploma or degree.

“Too many students already struggle to pay off their student loan debt and that stands in the way of their financial security well into their adult lives," Jasey, Quijano and Timberlake said in a joint statement. “Through this legislation, reasonable performance standards will be set, preventing (career programs) from (imposing debt) on students for which they will not earn sufficient salaries to repay.”