STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblywoman MILA M. JASEY
District 27 (Essex and Morris)
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
Co-Sponsored by:
Assemblywomen Timberlake, McKnight, Swain and Assemblyman Tully
SYNOPSIS
Requires financial aid award letter provided by institutions of higher education and certain proprietary schools be consistent with financial aid shopping sheet.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning student financial aid and supplementing P.L.1994, c.48 (C.18A:3B-1 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. In the event that a public or independent institution of higher education or a proprietary institution licensed to offer academic degrees provides a financial aid award letter to a student, the financial aid award letter shall:
(1) be presented in a manner, and in such language, that is substantially similar to that which is used in, and uses terms as defined in, the financial aid shopping sheet provided to students pursuant to section 2 of P.L.2019, c.201 (C.18A:3B-6b);
(2) clearly display the estimated net cost to attend the institution;
(3) clearly differentiate a student’s eligibility for loans from a student’s eligibility for other forms of financial aid, including grants and scholarships; and
(4) include a clear statement that the acceptance or decline of one or more loan offers shall not impact a student’s eligibility for any other grants or scholarships detailed in the student’s financial aid award letter.
b. A student enrolled in a public or independent institution of higher education or a proprietary institution licensed to offer academic degrees shall be ineligible to receive any form of student assistance from the State, including grants, scholarships, and loans, in the event that the institution or school fails to meet the requirements established pursuant to subsection a. of this section, as determined by the Secretary of Higher Education.
2. This act shall take effect immediately and shall first apply to financial aid award letters that will be sent in the 2022-2023 academic year.
STATEMENT
This bill requires institutions of higher education and certain proprietary schools that provide students with a financial aid award letter to do so in a manner that is consistent with the financial aid shopping sheet that these institutions and schools must provide to students, pursuant to section 2 of P.L.2019, c.201 (C.18A:3B-6b). The financial aid shopping sheet has been designed to improve students’ and parents’ understanding of higher education costs and financial aid options.
Under the bill, in the event that a public or independent institution of higher education or a proprietary institution licensed to offer academic degrees provides a financial aid award letter to a student, the financial aid award letter must:
· be presented in a manner, and in such language, and using defined terms substantially similar to that which is used in the financial aid shopping sheet;
· clearly display the estimated net cost to attend the institution;
· clearly differentiate a student’s eligibility for loans from a student’s eligibility for other forms of financial aid; and
· include a clear statement that the acceptance or decline of one or more loan offers will not impact a student’s eligibility for any other grants or scholarships detailed in the student’s financial aid award letter.
The bill also provides that a student enrolled in a public or independent institution of higher education or a proprietary institution licensed to offer academic degrees will be ineligible to receive any form of student assistance from the State, including grants, scholarships, and loans, in the event that the institution or school fails to meet the bill’s requirements, as determined by the Secretary of Higher Education.