New Jersey Assembly Bill A1189

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 2/3/22
• Engrossed: 2/28/22
• Refer: 2/28/22
• Report Pass: 3/14/22
• Engrossed: 10/17/22
• Enrolled: 10/27/22
• Chaptered: 12/12/22
• Passed: 12/12/22

Caption

Requires financial aid award letter provided by institutions of higher education and certain proprietary schools be consistent with financial aid shopping sheet.

Impact

The bill impacts how institutions present financial aid information, requiring them to clearly display the estimated net cost to attend and differentiate between loans, grants, and scholarships. Institutions that fail to comply with these requirements risk having their students ineligible for state-provided aid. This act is expected to take effect immediately, specifically applying to award letters for the 2023-2024 academic year. It aligns with broader efforts to improve financial literacy among students and ensure they are well-informed about their funding options.

Summary

Bill A1189 aims to enhance transparency in the financial aid process for students enrolled in institutions of higher education and certain proprietary schools. The legislation mandates that financial aid award letters must adhere to the format and terminology defined in the financial aid shopping sheet provided to students. This requirement ensures that students receive clearer and more consistent information regarding the costs associated with their education, eligibility for different forms of financial aid, and the implications of accepting or not accepting loan offers.

Sentiment

The general sentiment regarding A1189 appears to be positive among educational advocates and lawmakers concerned with financial transparency. Supporters argue that clear financial aid letters will empower students to make informed decisions about their education funding. However, any potential pushback might arise from institutions that may find compliance burdensome or fear that additional transparency could discourage students from obtaining loans.

Contention

One notable point of contention surrounding A1189 relates to the balance between regulatory requirements for educational institutions and the need for students to receive adequate information. While the intention is to protect students and facilitate better decision-making, critics may argue that imposing stringent guidelines on financial aid letters could pose additional administrative challenges for institutions. Ultimately, the bill seeks to safeguard student interests while ensuring that institutions uphold standards in detailing financial aid options.