Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblywoman LINDA S. CARTER
District 22 (Somerset and Union)
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
SYNOPSIS
Phases out State tuition aid grants for students enrolled in proprietary institutions of higher education; redirects State tuition aid grant funding for students enrolled in proprietary institutions to summer tuition aid grant program.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning State tuition aid grants, amending various parts of the statutory law, 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. N.J.S.18A:71B-18 is amended to read as follows:
18A:71B-18. Grants Created; Use.
There are hereby created State tuition aid grants which shall be maintained by the State, awarded and administered pursuant to this act, and used by the holders thereof for undergraduate study in eligible institutions. Notwithstanding the provisions of N.J.S.18A:71B-1 to the contrary, as used in this article, eligible institution means a county college, a public research university, a State college, or an independent institution of higher education.
(cf: N.J.S.18A:71B-18)
2. Section 1 of P.L.2016, c.47 (C.18A:71B-19.1) is amended to read as follows:
1. An [institution of higher education and a proprietary degree-granting] eligible institution shall annually provide the Higher Education Student Assistance Authority with detailed information on the graduation rates of State tuition aid grant recipients. In the case of a county college, the college shall also provide the authority with the transfer rates of the State tuition aid grant recipients. An institution shall provide the information in [such] a form [as] determined by the authority.
The authority shall post the information provided by each institution for public inspection on its website.
(cf: P.L.2016, c.47, s.1)
3. Section 2 of P.L.2023, c.34 (C.18A:71B-20a) is amended to read as follows:
2. a. The authority shall annually award summer tuition aid grants for eligible students pursuant to N.J.S.18A:71B-20. A summer tuition aid grant shall be applied toward the tuition costs outside of the academic year, as defined in N.J.S.18A:71B-4. The receipt of a summer tuition aid grant shall not: (1) reduce the amount of a tuition aid grant awarded to the student during the academic year; (2) be included when determining the student's maximum tuition aid grant awards pursuant to subsection b. of this section; or (3) otherwise adversely affect the student's eligibility for an award under this chapter.
b. A summer tuition aid grant shall be prorated against the full-time tuition aid grant awarded in the preceding semester as follows: an eligible student enrolled with six to eight credits shall receive one-half of the value of a full-time award, and an eligible student enrolled with nine to 11 credits shall receive three-quarters of a full-time award.
c. Summer tuition aid grants awarded for the summer 2023 semester pursuant to this section shall be funded by the appropriation made to the authority pursuant to section 3 of P.L.2023, c.34 and any additional amounts as may be required from the unexpended balance of funds previously awarded for tuition aid grants as of the effective date of P.L.2023, c.34 (C.18A:71B-20 et al.). The Legislature may award funds in addition to those appropriated to the authority pursuant to section 3 of P.L.2023, c.34 by a separate line item.
d. Summer tuition aid grants awarded for the summer 2024 semester pursuant to this section shall be funded by any amounts as may be required from the unexpended balance of funds appropriated in fiscal year 2024 for the purpose of providing tuition aid grants in the fall 2023 and spring 2024 semesters. The Legislature may appropriate additional funds to the authority as may be necessary to fund summer tuition aid grants awarded for the summer 2024 semester pursuant to this section by a separate line item.
e. Beginning with the summer 2025 semester, summer tuition aid grants awarded pursuant to this section shall be funded by a separate line item in the annual appropriations act, except as otherwise permitted pursuant to subsection f. of this section.
f. Beginning with the 2026-2027 academic year and each academic year thereafter, State tuition aid grant funds, which are estimated by the authority to have otherwise been awarded to students enrolled in proprietary institutions of higher education prior to the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), shall instead be appropriated to fund summer tuition aid grants for students enrolled in eligible institutions.
(cf: P.L.2023, c.283, s.2)
4. (New section) Notwithstanding the provisions of any law or regulation to the contrary, beginning with the 2026-2027 academic year, a State tuition aid grant for a student enrolled in a proprietary institution licensed to award academic degrees shall be limited to students who received an award prior to that academic year. The student shall be eligible to receive a State tuition aid grant for the number of academic years authorized pursuant to section b. of N.J.S.18A:71B-20.
5. This act shall take effect immediately and shall first apply to the 2026-2027 academic year.
STATEMENT
This bill phases out State tuition aid grants for students enrolled in proprietary institutions of higher education.
Under the bill, beginning with the 2026-2027 academic year, a State tuition aid grant for a student enrolled in a proprietary institution is to be limited to students who received an award prior to that academic year. Students enrolled in a proprietary institution who received an award prior to the 2026-2027 academic year are to continue to receive an award until the student is no longer eligible.
Additionally, the bill provides that beginning with the 2026-2027 academic year and each year thereafter, funds which would have otherwise been awarded to students enrolled in proprietary institutions prior to the enactment of the bill are to instead be appropriated to fund summer tuition aid grants.