New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S1023

Introduced
1/31/22  
Refer
1/31/22  

Caption

Removes expected family contribution from calculation of financial need under circumstances in which public institutions of higher education may reduce student's institutional financial aid.

Impact

The removal of the expected family contribution from the financial need calculation could substantially alter how financial aid is distributed among students. By relying solely on the cost of attendance, more students may find themselves eligible for institutional financial aid, leading to potentially increased access to education for those from lower-income backgrounds. This change is expected to uplift financial assistance frameworks within public institutions, thereby supporting students who may otherwise struggle to afford higher education.

Summary

Senate Bill S1023, introduced in New Jersey, aims to address the calculation of financial need for students seeking institutional financial aid at public higher education institutions. Specifically, the bill proposes the removal of the expected family contribution (EFC) from this calculation, which is currently defined as the difference between the cost of attendance and the EFC. As a result, the bill would redefine 'financial need' to be solely based on the cost of attendance, making it potentially easier for students to qualify for financial aid.

Contention

Despite its intention to broaden access, the bill has raised discussions among policymakers and educational stakeholders. Supporters argue that this reform is necessary for equity, ensuring that students' backgrounds do not restrict their educational opportunities. However, critics are concerned that without the EFC, institutions may face challenges in balancing their financial resources, potentially leading to an unsustainable model of funding educational aid. Moreover, there is debate about how effective this change will be in meeting the diverse financial needs of students while preserving the financial integrity of public higher education institutions.

Companion Bills

NJ A4814

Same As Removes expected family contribution from calculation of financial need under circumstances in which public institutions of higher education may reduce student's institutional financial aid.

Previously Filed As

NJ A2552

Requires public institutions of higher education to disclose all financial donors.

NJ SB868

Permissible financial aid reductions in higher education. (FE)

NJ AB486

Permissible financial aid reductions in higher education. (FE)

NJ SB6209

Revised for 1st substitute: Concerning financial aid awards for students attending private four-year and two-year institutions of higher education.

NJ HB471

Higher ed. institutions, public; financial aid for students with intellectual disabilities, etc.

NJ SB2995

Relating to the displacement of student financial aid at a public institution of higher education.

NJ A4645

Revises law permitting undocumented students to pay in-State tuition rate at public institution of higher education and receive certain student financial assistance.

NJ SB416

Student financial aid: Cal Grants: qualifying institutions: financial aid offer letter template.

NJ HB793

Regards cost of attendance at institutions of higher education

NJ S3383

Requires tuition aid grant amounts to be equal for students enrolled in independent institutions of higher education and students enrolled in four-year public institutions of higher education.

Similar Bills

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AZ HB2832

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WY HB0057

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NJ S828

Establishes the New Jersey School Counts County College Scholarship Program.

NJ A1100

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GA SB556

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SD HB1306

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GA HB1300

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