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.
If enacted, A4814 would directly impact institutional financial aid policies, allowing public colleges and universities greater flexibility in assisting students with their financial needs. This change is particularly significant for students who may have previously been deemed ineligible for aid due to their family's financial contribution. By removing EFC, institutions can potentially increase the amount of aid given to qualifying students, thus improving access to higher education for a broader demographic.
Assembly Bill A4814 seeks to amend New Jersey law regarding the calculation of financial need for students receiving institutional financial aid from public higher education institutions. The primary change proposed by this bill is the removal of the expected family contribution (EFC) from the financial need calculation. Under current law, financial need is defined as the cost of attendance minus the EFC. By eliminating the EFC from this equation, the bill aims to enhance the financial aid eligibility for students, especially those who receive private scholarships.
While the bill appears to promote accessibility to educational resources, there are concerns about the implications for state budgets and the potential financial strain it may place on public educational institutions. Critics argue that this could lead to increased costs for schools, which may ultimately be passed on to taxpayers or result in cutbacks elsewhere. The discussions surrounding A4814 have highlighted a divide between those advocating for expanded access in higher education financing and those wary of its financial ramifications on state funding and institutional resources.