Gov. Murphy signs bills aimed at helping college loan borrowers

Posted: Updated:
TRENTON -

Gov. Phil Murphy has signed into law two bills aimed at helping student loan borrowers facing financial hardships.

The governor signed the bills Thursday at his Trenton office.

One measure permits borrowers in financial straits to pay 10% of their monthly household income for two years. Beyond two years, if needed, borrowers could pay 15% of household income for 25 years.

The other measure offers borrowers in default a chance to reach a settlement agreement and rehabilitate their credit.

These changes were enacted under the Murphy administration. The new laws make them permanent for future administrations.

“Today that program becomes law. Meaning that it will be available to future graduates for generations to come…no matter who the leaders are...forever and for always this is the way it's going to be in New Jersey,” Murphy said.

The changes will not cost taxpayers as the loans are funded entirely through private revenue bonds.

The bills stemmed from a student loan overhaul sparked by a 2016 New York Times article showing cosigners were still liable for debt even after borrowers died.

Former Republican Gov. Chris Christie signed legislation allowing loan forgiveness in the case of a borrower's death.

The Associated Press wire services contributed to this report.

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