New Jersey Assembly Bill A1713

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Revises NJBEST one-time grant to annual grant of up to $1,500 for certain contributors.

Impact

The modifications to the NJBEST program as outlined in A1713 are expected to substantially benefit low- and middle-income families by providing them increased incentives to save for their children's higher education. This change is anticipated to lead to higher participation rates in the program as families can potentially receive three dollars for every dollar they contribute, up to the $1,500 maximum annually. Such financial support can alleviate some of the educational cost burdens that families face, particularly as college tuition continues to rise.

Summary

Assembly Bill A1713 proposes significant modifications to the New Jersey Better Educational Savings Trust (NJBEST) Program, revising the existing one-time grant structure to an annual savings incentive grant. The bill aims to provide enhanced financial support for contributors to NJBEST accounts, specifically targeting those with an adjusted gross income of up to $75,000. Instead of a maximum one-time grant of $750, the new structure would allow for an annual grant of up to $1,500, thereby increasing the total potential financial assistance available to families saving for higher education over several years.

Contention

Throughout discussions surrounding A1713, proponents have emphasized the importance of fostering educational opportunities for all, particularly for those from lower-income backgrounds. However, some opponents may express concern regarding the funding mechanisms and sustainability of the increased grant amounts. Questions may arise about whether administrative fees, as introduced in the bill, will adequately support the annual grants without detracting from essential program functions or diluting the impact of the funds available.

Implementation

If passed, A1713 would mandate the Higher Education Student Assistance Authority to adopt necessary procedures for the implementation of the new rules concerning annual savings incentive grants. The bill also emphasizes the importance of maintaining program eligibility standards and making sure that the NJBEST program remains an effective tool for families looking to manage the costs associated with higher education.