A888

An Act concerning financial aid for students enrolled in public institutions of higher education, amending P.L.2021, c.26, and supplementing chapter 71B of Title 18A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) Sections 2 through 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) and sections 1 through 6 of P.L.2021, c.26 (C.18A:71B-111 et seq.) shall be known and may be cited as the “New Jersey College Promise Act.”

2. (New section) As used in sections 2 through 6 of P.L. , c. (C. ) (pending before the Legislature as this bill):

"Annual adjusted gross income" means:

a. for a dependent student, the annual adjusted gross income of the student's parent or legal guardian, as reported on the student's Free Application for Federal Student Aid or other financial aid form; and

b. for an independent student, the annual adjusted gross income of the student and, if applicable, the spouse of the student, as reported on the student's Free Application for Federal Student Aid or other financial aid form.

"Approved educational fees" means fees for general education, registration, facility, technology, laboratory, student service and activity, program and course, and any other fees as may be determined by the Higher Education Student Assistance Authority, in consultation with the Office of the Secretary of Higher Education, subject to the limit of funds appropriated or otherwise made available for the program.

"Authority" means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3.

“Fourth year of postsecondary academic study” means having earned between 90 and 128 cumulative academic credits, regardless of the method in which the student earned the credits or the institution which awarded the credits.

“Net cost” means a student’s cost of tuition and approved educational fees for the fall and spring semester in an academic year, minus all need or merit-based federal, State, institutional, or other grants or scholarships that the student receives.

"Program" means the Garden State Guarantee Program established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Third year of postsecondary academic study” means having earned between 60 and 89 cumulative academic credits, regardless of the method in which the student earned the credits or the institution which awarded the credits.

3. (New section) There is established the Garden State Guarantee Program in the Higher Education Student Assistance Authority. The purpose of the program shall be to provide financial aid grants for the third and fourth year of academic study of eligible students enrolled in four-year public institutions of higher education to cover the student’s net cost. The financial aid grants distributed to eligible students under the program shall be administered by the authority.

4. (New section) a. To be eligible to receive a financial aid grant under the program, a student shall:

(1) be a legal resident of the State in accordance with the provisions of N.J.S.18A:71B-2 or be eligible for student financial aid pursuant to section 1 of P.L.2018, c.12 (C.18A:71B-2.1);

(2) be enrolled in at least 12 credits at a four-year public institution of higher education and be in the third or fourth year of postsecondary academic study;

(3) not have an annual adjusted gross income that is negative;

(4) have an annual adjusted gross income between $0 and $100,000, except that the authority, in consultation with the Office of the Secretary of Higher Education, may annually establish maximum annual adjusted gross income eligibility limits of no less than $100,000;

(5) have applied for all other available forms of federal, State, and institutional need-based grants and merit scholarships and, in accordance with annually established deadline dates, have completed and submitted a Free Application for Federal Student Aid, other financial aid form, or, as applicable, a State financial aid form as required by the authority pursuant to subsection b. of section 1 of P.L.2018, c.12 (C.18A:71B-2.1);

(6) not owe a refund on a grant or scholarship previously received from a federal or State program through any institution or be in default on any loan made under any federal or State student loan program at any institution, unless the student makes arrangements with the authority to repay the debt; and

(7) be in good academic standing and meet the minimum standards for academic performance and satisfactory academic progress as defined by the four-year public institution of higher education which the student is attending.

b. A grant under the program may be renewed for a student who:

(1) annually completes and submits a Free Application for Federal Student Aid, other financial aid form, or, as applicable, a State financial aid form as required by the authority pursuant to subsection b. of section 1 of P.L.2018, c.12 (C.18A:71B-2.1);

(2) meets the standards for academic performance and satisfactory academic progress, as defined by the institution of higher education which the student is attending, to determine eligibility for federal student aid programs under Title IV of the Higher Education Act of 1965 or, in the semester immediately prior to receiving an award, attains a minimum level of academic success as determined by the authority; and

(3) maintains all eligibility requirements established pursuant to subsection a. of this section.

c. A four-year public institution of higher education shall not impose any additional eligibility requirements for the program other than the requirements set forth in this section.

d. A student shall be eligible for a grant under the program for up to four semesters.

e. A student may be eligible for a grant under the program during a fall or spring semester in an academic year.

f. If a student, the student's family, or a four-year public institution of higher education deems that the authority made an unfair determination of eligibility, an appeal may be filed with the authority within 60 days of initial notification of eligibility or ineligibility.

g. The four-year public institution of higher education which a student attends shall notify the student of the student's eligibility for the program and the amount of the grant.

5. (New section) a. A grant distributed to an eligible student under the program shall cover the student’s net cost for up to 18 credits in a fall or spring semester. The full amount of federal, State, and institutional need-based grants or merit scholarships received by an eligible student shall be applied to the amount of tuition and approved educational fees charged to an eligible student, when determining the amount of a grant under the program.

b. A full award under the program to an eligible student with an adjusted gross income between $0 and $100,000 who is enrolled at a four-year public institution of higher education shall be equal to the student's net cost for up to 18 credits in a fall or spring semester.

c. Subject to the availability of funds, the authority may, in consultation with the Secretary of Higher Education, establish additional tiers of eligibility for students with an annual adjusted gross income above the maximum adjusted gross income established pursuant to subsection a. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), in an amount that ensures that each student receives sufficient financial aid from a combination of federal, State, institutional, and other grants or scholarships to reduce the student’s net cost of tuition and mandatory fees to an amount to be determined by the authority, in consultation with the Secretary of Higher Education.

d. The authority shall, for each four-year public institution of higher education, annually establish a maximum individual grant amount awarded under the program. The maximum individual grant amount for each four-year public institution of higher education shall not increase by more than three percent over the prior year.

6. (New section) The authority shall adopt, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of sections 2 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

7. Section 3 of P.L.2021, c.26 (C.18A:71B-113) is amended to read as follows:

3. a. To be eligible to receive a financial aid grant under the Community College Opportunity Grant Program, a student shall:

(1) be a legal resident of the State in accordance with the provisions of N.J.S.18A:71B-2 or be eligible for student financial aid pursuant to P.L.2018, c.12 (C.18A:71B-2.1);

(2) be enrolled in at least six credits at a county college established pursuant to chapter 64A of Title 18A of the New Jersey Statutes;

(3) (a) be enrolled at the county college that serves the student's county of residence; or

(b) be enrolled at an out-of-county college, in which case the student, if otherwise eligible, shall receive a grant under the program to cover the remaining costs of tuition and approved educational fees, charged at the in-district rate for the county college at which the student is enrolled, provided that the amount of a grant provided to a student under this subparagraph does not exceed the amount of tuition and approved educational fees actually charged to the student;

(4) not have an annual adjusted gross income that is negative;

(5) have an annual adjusted gross income between $0 and [$65,000] $100,000, except that the authority, in consultation with the Office of the Secretary of Higher Education and the New Jersey Council of County Colleges, may annually establish maximum annual adjusted gross income eligibility limits of no less than [$65,000] $100,000;

(6) have applied for all other available forms of State, federal, and institutional need-based grants and merit scholarships and, in accordance with annually established deadline dates, have completed and submitted a Free Application for Federal Student Aid, other financial aid form, or, as applicable, a State financial aid form as required by the authority pursuant to subsection b. of section 1 of P.L.2018, c.12 (C.18A:71B-2.1);

(7) not owe a refund on a grant or scholarship previously received from a State or federal program through any institution or be in default on any loan made under any State or federal student loan program at any institution, unless the student makes arrangements with the authority to repay the debt; and

(8) be in good academic standing and meet the minimum standards for academic performance and satisfactory academic progress as defined by the county college which the student is attending.

A county college shall not impose additional eligibility requirements for the program, other than the requirements set forth in this subsection.

b. A grant under the program may be renewed for a student who:

(2) meets the standards for academic performance and satisfactory academic progress, as defined by the county college which the student is attending, to determine eligibility for federal student aid programs under Title IV of the Higher Education Act of 1965 or, in the semester immediately prior to receiving an award, attains a minimum level of academic success as determined by the authority; and

(3) maintains all eligibility requirements established pursuant to subsection a. of this section.

c. (1) A student shall be eligible for a grant under the program for up to five semesters, unless the student is enrolled in a program regularly requiring at least six semesters for completion, in which case the authority shall permit up to six semesters of eligibility.

(2) A student enrolled in a three plus one degree program shall be eligible for a grant under the program for up to six semesters.

(3) Semesters for which a student is enrolled in at least six credits but less than 12 credits shall be counted as one-half of a full-time semester.

d. A student may be eligible for a grant under the program during a fall or spring semester in an academic year.

e. If a student, the student's family, or a county college deems that the authority made an unfair determination of eligibility, an appeal may be filed with the authority within 60 days of initial notification of eligibility or ineligibility.

f. The county college which a student attends shall notify the student of the student's eligibility for the program and the amount of the grant.

(cf: P.L.2021, c.26, s.3)

8. This act shall take effect immediately and shall first apply to financial aid grants provided in the first full academic year next following the date of enactment.

STATEMENT

This bill increases the income-based eligibility of the Community College Opportunity Grant Program and codifies the Garden State Guarantee Program in the Higher Education Student Assistance Authority to provide last-dollar financial aid grants to eligible students enrolled in their third and fourth year of study at a four-year public institution of higher education.

The bill revises the Community College Opportunity Grant Program to increase the income eligibility criteria under the program. Pursuant to current law, the program provides last-dollar financial aid grants to certain county college students who have an annual adjusted gross income between $0 and $65,000. The bill, meanwhile, increases this income threshold to permit eligible students with an annual adjusted gross income between $0 and $100,000 to receive awards. Under the bill, the authority is permitted to establish additional eligibility tiers exceeding the $100,000 income limit.

The bill also codifies the Garden State Guarantee Program. To be eligible to receive a financial aid grant under the Garden State Guarantee Program, a student is required to: (1) be a legal resident of the State or otherwise be eligible for State student financial aid pursuant to current State law permitting certain undocumented students to receive State financial aid; (2) be enrolled in at least 12 credits at a four-year public institution of higher education and be in the third or fourth year of postsecondary academic study; (3) not have an annual adjusted gross income that is negative; (4) have an annual adjusted gross income between $0 and $100,000, unless otherwise adjusted by the Higher Education Student Assistance Authority; (5) have applied for all other available forms of federal, State, and institutional need-based grants and merit scholarships and have completed required financial aid forms; (6) not owe a refund on a grant or scholarship previously received from a federal or State program through any institution or be in default on any federal or State student loan, unless the student makes arrangements with the authority to repay the debt; and (7) be in good academic standing and meet the minimum standards for academic performance and satisfactory academic progress. A student is to be eligible for a grant under the program for up to four semesters and may only be eligible for a grant under the program during a fall or spring semester in an academic year.

Under the program, a grant distributed to an eligible student is to cover the student’s net cost for up to 18 credits in a fall or spring semester. The bill provides that, subject to the availability of funds, the authority may, in consultation with the Secretary of Higher Education, establish additional tiers of eligibility for students with an annual adjusted gross income above the maximum established under the bill. The bill also requires the authority to establish a maximum individual grant amount awarded under the program for each four-year public institution of higher education. This amount is not to increase by more than three percent over the prior year.