Even after death, it seems like lenders will chase people to the ends of the Earth to ensure repayment. A New Jersey mom faced a rejection letter by the Higher Education Student Assistance Authority of New Jersey, even after she asked for loan forgiveness.
Even though her 23-year-old son died, the Authority will still issue monthly bill statements, and she must continue to pay.
Eighteen Payments, 92 To Go
Marcia DeOliveira-Longinetti was the recipient of this letter after she attempted to obtain student loan forgiveness after her 23-year-old son was murdered.
Like most Millenials, DeOliveira-Longinetti’s son sought a student loan, and New Jersey was more than happy to help him secure one. New Jersey is unique due to its totalitarian approach when it comes to pursuing those who default on payments.
DeOliveira-Longinetti has been forced to pay $180 a month to the state. So far, DeOliveira-Longinetti made 18 payments, and has 92 to go.
New Jersey is unusual because it has significant legal leeway when it comes to chasing after loan recipients. This isn’t the first time that New Jersey placed profits over people.
Chris Gonzales was laid off by Goldman Sachs, and the federal government allowed him to enjoy the merits of loan forgiveness. New Jersey was not satisfied with this, and the state took Gonzalez’s tax refund. New Jersey Governor Chris Christie has been particularly mute throughout this ordeal, with his hands apparently too tied up in someone’s presidential campaign to care about rectifying New Jersey’s loan programs.
New Jersey Replacing Federal Loans
In recent years, New Jersey has replaced federal loans with state loans, quickly accumulating more than $343 million loaned per year. By now, the state is sitting on a portfolio of more than $2 billion of student loan debt.
Other states like Massachusetts allow loans to be forgiven if the recipient does not exist anymore. New Jersey, on the other hand, shamelessly goes as far as to recommend its students purchase life insurance to cover their student loan debts if they pass away.
Featured image by Sarah Mirk on Flickr/CC by 2.0.
