TRENTON, N.J. (CBS/AP) — New Jersey Gov. Phil Murphy has signed into law two bills aimed at helping student loan borrowers facing financial hardships. The Democrat signed the bills Thursday at his Trenton office.
“By making more affordable repayment options available through the new programs that HESAA has launched that are now codified into law, we will enable college graduates to live and thrive here in the Garden State,” Murphy said in a statement.
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.
The bills stemmed from a student loan overhaul sparked by a 2016 New York Times article showing co-signers 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.
(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)