New Jersey Assembly Bill A2177

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Chaptered: 1/9/24
• Passed: 1/9/24

Caption

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.

Impact

The impact of A2177 on state laws revolves around its amendment to the existing Public Law 2021, c.223, which governs institutional financial aid. By eliminating the EFC from the financial need calculation, the bill should facilitate a more favorable outcome for students receiving aid, especially for those from lower-income families. The bill stipulates that public institutions may still reduce institutional financial aid in certain situations involving private scholarships, but it removes the EFC as a limiting factor. This change could lead to an increase in available funds for students who may have otherwise been unable to attain adequate financial support because of their family’s financial status.

Summary

Assembly Bill A2177 aims to amend the current financial aid framework within public institutions of higher education in New Jersey by removing the expected family contribution (EFC) from the calculation of financial need. By doing so, the bill seeks to provide a more straightforward assessment of a student's financial situation, thereby ensuring that institutional financial aid remains accessible and equitable for all students. This could significantly alter how financial need is determined, potentially allowing more students to receive aid without the burden of a pre-determined family contribution affecting their eligibility.

Contention

A key point of contention surrounding A2177 involves the balance between maintaining a fair financial aid system and the sustainability of public funding for higher education. Critics may argue that removing the EFC could lead to unintended consequences, such as increased competition for available funds amongst students or an over-reliance on institutional support without considering family resources. Conversely, supporters contend that by disregarding the EFC, the bill will more accurately reflect a student’s true need and thereby help to level the playing field for students from diverse economic backgrounds. The debate around this bill underscores the ongoing discussions regarding accessibility and equity in higher education financial aid.