New Jersey Senate passes bill that will help high schoolers better understand college debt

In many cases, students don't realize how much they will be paying month-to-month on their student loans until after they graduate and receive their first repayment schedule from a provider. A new initiative being spearheaded by the New Jersey State Senate is now requiring that students in that state be educated about their repayment schedule before they even graduate high school.

On Thursday, November 29, the Senate voted on the final approvals for a bill that would call for the creation and distribution of a brochure that outlines post-grad life for students based upon what route they take in financing higher education. The bill now awaits the approval of Governor Chris Christie before being enacted as soon as next year.

"Educating students on the ins and outs of the borrowing process before they sign loan documents can help students graduate without being mired in debt," Assemblywoman Annette Quijano told the New Jersey News Record.

Once approved, the state's Higher Education Student Assistance Authority (HESAA) would be tasked with making the document and distributing it to high school juniors and seniors statewide annually. The group would also be responsible for updating the booklet every year, staying on top of the latest developments in terms of government initiatives and amendments to loan programs.

The document would be posted on the HESAA website, as well as distributed to non-public schools throughout New Jersey.

This legislation comes on the heels of a 2011 report from the Department of Education that found public colleges in New Jersey are among the most expensive in the country, even for in-state residents looking to attend.

College Financing Group has financial aid consultants on hand who can help students determine what path to take in ensuring they won't be burdened with unreasonable debt after graduation.