New Jersey Pay It Forward Program

New Jersey Pay It Forward Program

Overview: Provides zero-interest loans for participants—especially those without savings or credit history—to enroll in high-quality job training. Includes living stipends and supportive services.

Loan Repayment Terms

• Income-Based Repayment: 10% of discretionary income monthly for up to 5 years
• Minimum Income Threshold: Dynamic amount equal to $1,000/month above 150% of Federal Poverty Level (varies by household size)
• If below threshold: Pay nothing; eligible for deferment
• No interest fees: Zero-interest loans, no loan fees charged
• Maximum Repayment Term: 60 months (5 years) from end of grace period
• Grace Period: No payments required while in school or during 3-month grace period following successful exit, withdrawal, or dismissal

Deferment Eligibility

Deferments may be granted for: 1. Income below minimum threshold 2. Active military duty 3. Natural disaster impact 4. Bankruptcy declaration 5. Extenuating personal hardship

Support Services (Non-Repayable)

• Living Stipend Grant: Opt-in cash assistance (not repaid) delivered via virtual debit card, bank account, Venmo, or PayPal
• Additional Services: Mental health counseling and one-time financial assistance at no cost
• Support provided by: Training providers

Payment Cap & Withdrawal Protection

• Never charged more than face value of loan
• If withdrawing before 60% program completion: Payment cap adjusted proportionally (e.g., $10,000 loan with 40% completion = max $4,000 repayment)
• If withdrawing after 60% completion: Payment cap not adjusted
• Monthly payments still based on income; 5-year term still applies

Loan Features

• Linked to Funding Gap: Loan amount equals advertised list price minus other grants/payments received
• Income-Adjusted Payments: Monthly payments fluctuate based on actual income changes
• Household-Based Calculation: Payments calculated based on household size and discretionary income
• Income Documentation: Participants responsible for providing proof of income; if not provided, servicer assumes median income for occupation per BLS data

Geographic Scope

New Jersey only

Contact Information

• Loan Origination (Funding U): info@funding-u.com or 404-800-1297
• Loan Servicing (MOHELA): 888-212-5908
• Living Stipend/Support Services: njpayitforward@socialfinance.org or contact training provider
• Virtual Debit Card/Payment Issues (Usio): Log into account and use Contact Us tab

Student Bill of Rights

1. Right to Support Services: Living stipends and wraparound supports 2. Right to Transparency: Clear disclosures per Truth in Lending Act (Regulation Z) 3. Right to Open Communication: Access to staff throughout loan lifecycle 4. Right to Student-Centric Financing: Income-linked, cost-effective education financing