I had an Epson C60 that had a planned obsolescence counter chip in it that caused a similar error message, designed to fail after so many prints. But I doubt your problem is caused by this!
But you can run SSC on it to reset the counter and give that a try. This wasn't available back when I owned my Epson C60 and so I threw my printer away which is what Epson wanted people to do. A Russian Hardware Hacker/Programmer discovered this and made a tool to reset the counter and bring Epson printers back to life.
http://www.fixya.com/search/p1287084-epson_stylus_nx300_all_in_one_inkjet_pri/reset_counterIf the paper was able to be removed without any pieces of it torn off and still left inside, there is the possibility that it chipped a gear tooth or killed the motor that is used to feed paper which as a ready state feedback loop that is coming up with an error status. But instead of trying to open this printer to inspect for damaged gears etc, in which this model is likely like other similar modern models that were designed to be throw aways, its likely all snapped together plastic tabs without screws and not meant to be serviced.
I would also blow canned air into it if you can to blow any dust off of optical sensors etc that may be reporting blocked etc, but I am guessing if this were the case it would display JAM instead on the display.
