College Planning: The troubles with HESAA Loan Program are a Stark Contrast with Planning Early

MONTCLAIR, N.J. - Aug. 29, 2016 - PRLog -- After an article in the New York Times* detailed one family's nightmare in dealing with their son's death and his student loans through the Higher Education Student Assistance Authority (HESAA), New Jersey State Senators heard testimony on the program, which some have called "predatory" and "loansharking."

Financial Planning Association of New Jersey (FPANJ) Advocacy Chairman John Crosby was also in attendance in Trenton. He has counseled clients in similarly tough situations with HESAA. The program has been characterized with extraordinarily stringent rules that can easily lead to financial hardship. Loan repayments cannot be adjusted based on income, and few breaks are given for unemployment or other hardship.

"While there were no representatives from HESAA present, a letter from Executive Director Gabrielle Charette was submitted for testimony. I'm happy to say that things will be forced to change," Crosby said. The testimony led to a unanimous vote by the higher education committee to approve S-743, which would require HESAA to forgive the student loan of someone who dies before completely repaying it, as the federal government does.

The experience with HESAA for many families is in stark contrast to Francis Astorino's**. His diligence in planning for college with his family began early, especially as his triplets eyed college with another already enrolled. A CFP® and President of The Astorino Financial Group, he recalled the struggle to put himself through school, and didn't want the same burden for his children. He said it still took a lot of discipline and sacrifice to fund college for his four children, and it had to be a family decision.

"We put our kids to work early as early teens, helping in the office. And at about 16 years of age we sat them down and showed them the file with their balance sheet," Astorino said. "However nice it was to say we could send our kids anywhere, we wanted them to know we weren't going to fund their lifestyle, because we thought it was important that they had some skin in the game."

Crosby said, "The key takeaway I get from both of these stories is how incredibly important it is - whether or not you've planned early - to have a CFP® Professional there. It goes beyond building wealth...it really is about protecting your home, your family and your livelihood."

*View the New York Times article here: www.nytimes.com/2016/07/04/nyregion/in-new-jersey-student-loan-program-even-death-may-not-bring-a-reprieve.html

**View Frank's article here: http://www.fpanj.org/news/303149/Triple-Threat-Facing-the...

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