Ridgewood NJ, Governor Phil Murphy today signed A1181/S2054 to make the completion of a financial aid application form a prerequisite to graduation for public high school and charter school students in New Jersey. Beginning with the 2023-2024 11th grade class, and for two school years thereafter, students and their guardians will be required to complete and submit either the Free Application for Federal Student Aid (FAFSA) or the NJ Alternative Financial Aid Application, as guided by the Higher Education Student Assistance Authority (HESAA), in order to receive their high school diploma. The information on a student’s financial aid application is used to notify them of any financial aid they are eligible to receive if they pursue a postsecondary education.
Paramus NJ, Community college students in New Jersey may be able to attend free of tuition and fees in the spring semester of 2019, if their college applies and is selected to participate in the Community College Innovation Challenge, a new pilot program launched today. New Jersey’s Secretary of Higher Education and the Higher Education Student Assistance Authority (HESAA) have invited the state’s 19 community colleges to submit an application for the program.
“I’m very excited that the Secretary of Higher Education and HESAA are moving forward to make higher education more accessible and affordable for New Jersey families,” said Acting Governor Sheila Oliver. “Having the opportunity to obtain a college degree was an instrumental part of my life, and in today’s job market, it’s a matter of fairness and equality. Making higher education attainable will help secure a successful future for our students and strengthen New Jersey’s workforce and economy.”
New Jersey’s fiscal year 2019 state budget includes new funding for the first phase of Governor Murphy’s community college initiative, including up to $20 million for Community College Opportunity Grant (CCOG) awards to be applied directly to eligible student accounts. At participating colleges, students with adjusted gross incomes between $0 and $45,000 who take six or more credits in the spring 2019 semester will be eligible to receive CCOG awards to cover tuition and educational fees, after applying any other federal or state grant aid which the student receives.
“All too often, the cost of college prevents students from earning the postsecondary credentials they need to boost their careers,” said Dr. Zakiya Smith Ellis, New Jersey’s Secretary of Higher Education. “This initiative is an important step in improving affordability for thousands of community college students, increasing their likelihood of completion, and strengthening the talent pipeline for the state’s economy.”
“Governor Murphy’s goal is to make two years of community college tuition free for students across the state,” said David Socolow, Executive Director of the Higher Education Student Assistance Authority. “We’re taking a crucial first step by testing the Community College Opportunity Grants at a select number of colleges. This initial phase will not only help thousands of students next spring, both recent high school graduates and working adults, but also will provide valuable lessons for future expansions of the program to offer free tuition to more students.”
The Office of the Secretary of Higher Education and HESAA will jointly evaluate applications from colleges to select an initial group of colleges whose students will be made eligible for CCOG awards. The application specifies key criteria including the colleges’ plans for outreach to and support for students, how their cost projections fit within statewide funding constraints, and geographic diversity. All colleges that submit an application will be eligible to receive a capacity building grant of at least $250,000 to plan for subsequent phases of the program.
Colleges have until August 31, 2018 to submit their application. Participating institutions will be notified in the early fall to begin planning and recruiting students.
To access the Notice of Fund Availability application, colleges will access this online link:
https://www.hesaa.org/Pages/NoticeofFundAvailability.aspx
HESAA Loan Program revises its rules to benefit grieving families.
February 1,2017
the staff of the Ridgewood blog
UPPER MONTCLAIR NJ , A student loan program that had placed parents of deceased students in an unthinkable situation has now been changed. The Higher Education Student Assistance Authority (HESAA) program previously required parents of a deceased child to continue to pay their NJ CLASS / HESAA loans as a co-signer. However, New Jersey legislators have recently amended the program’s terms and conditions.
John Crosby, CFP®, ChFC, CAS, CLTC, CRPC®, and Advocacy Chairperson for FPANJ, was thrilled at the change in the loan program.
“This change came a result of all the advocates fighting for the same Terms and Conditions available for Federal Student loans in the event of death or disability of the borrower or co-borrower. We are grateful for everyone who testified on behalf of families who were devastated by the impacts of the HESAA rules.”
An article in the New York Times that detailed one family’s nightmare in dealing with their son’s death and his student loans through HESAA finally spurred discussion among New Jersey State Senators. In August 2016, Crosby had spoken to several of the legislators and those that officially testified to explain the process of borrowing, the liabilities of the co-signer vs. co-borrower and their un-forgivable legal obligations. Some had called the program “predatory” and “loansharking,” and testimony led to a unanimous vote by the Higher Education Committee to approve S-743, requiring HESAA to forgive the student loan of someone who dies before completely repaying it.
Crosby has counseled clients in similarly tough situations with HESAA. The program also had been characterized with extraordinarily stringent rules that can easily led to financial hardship. Loan repayments could not be adjusted based on income, and few breaks are given for unemployment or other hardship.
“This is truly the power of advocacy for the greater good,” Crosby said. “FPANJ continues to act as a resource in educating legislators on topics like these. Now we are just happy that parents in this situation can start to move forward in healing.”
As New Jersey senators came down on the state’s college loan program, Financial Planners stress the importance of developing a strategy early.
August 23,2016
the staff of the Ridgewood blog
Ridgewood NJ, After an article in the New York Times that detailed one family’s nightmare in dealing with their son’s death and his student loans through the Higher Education Student Assistance Authority (HESAA), New Jersey State Senators heard testimony on the program, which some have called “predatory” and “loansharking.”
“My own experience was very similar even in 1980 student loans we a scam and students were not provided with proper accurate information to make a rational financial decisions” the Ridgewood blog Founder James Foytlin
Financial Planning Association of New Jersey (FPANJ) Advocacy Chairman John Crosby was also in attendance in Trenton. He has counseled clients in similarly tough situations with HESAA. The program has been characterized with extraordinarily stringent rules that can easily lead to financial hardship. Loan repayments cannot be adjusted based on income, and few breaks are given for unemployment or other hardship.
“While there were no representatives from HESAA present, a letter from Executive Director Gabrielle Charette was submitted for testimony. I’m happy to say that things will be forced to change,” Crosby said. The testimony led to a unanimous vote by the higher education committee to approve S-743, which would require HESAA to forgive the student loan of someone who dies before completely repaying it, as the federal government does.
The experience with HESAA for many families is in stark contrast to Francis Astorino’s. His diligence in planning for college with his family began early, especially as his triplets eyed college with another already enrolled. A CFP® and President of The Astorino Financial Group, he recalled the struggle to put himself through school, and didn’t want the same burden for his children. He said it still took a lot of discipline and sacrifice to fund college for his four children, and it had to be a family decision.
“We put our kids to work early as early teens, helping in the office. And at about 16 years of age we sat them down and showed them the file with their balance sheet,” Astorino said. “However nice it was to say we could send our kids anywhere, we wanted them to know we weren’t going to fund their lifestyle, because we thought it was important that they had some skin in the game.”
Crosby said, “The key takeaway I get from both of these stories is how incredibly important it is – whether or not you’ve planned early – to have a CFP® Professional there. It goes beyond building wealth…it really is about protecting your home, your family and your livelihood.”
ABOUT FPA of New Jersey and FPA:
Financial Planning Association of New Jersey is part of The Financial Planning Association® (FPA®). FPA connects those who need, support and deliver professional financial planning. FPA believes that everyone is entitled to objective advice from a competent, ethical financial planner to make smart financial decisions. FPA members demonstrate and support a professional commitment to education and a client-centered financial planning process. Working in alliance with academic leaders, legislative and regulatory bodies, financial services firms and consumer interest organizations, FPA is the community that fosters the value of financial planning, and advances the practice and profession of financial planning.
