Credit: NJLA (NJ Library Association) via Flickr; CC BY-NC-ND 2.0.Citing a need to make college more affordable in New Jersey, Gov. Phil Murphy’s proposed budget would increase overall spending on financial aid provided annually to thousands of low-income college students.
But lawmakers want to go a step further, enacting a key change to one of the state’s most popular student-assistance programs. Their goal: help students reduce debt and better leverage financial aid they receive from the federal government.
Up for review in an Assembly committee Thursday is legislation that would let students who receive state-funded Tuition Aid Grants use that money to offset the cost of classes they take this summer.
The proposed change seeks to address one of the top issues identified in a special report on the financial-aid program commonly referred to as “TAG” that was published last year by the state Higher Education Student Assistance Authority.
Right now, TAG can only be used by students taking classes in the fall and spring semesters, even though aid furnished through the similar federal Pell grant program can be used to fund summer courses, according to the report.
Holding down cost of college
With concerns about college affordability and student debt running high, sponsors say the legislation would provide, at least temporarily, another way for the state to support low-income students seeking college degrees. The measure has already cleared the full Senate by a 36-0 margin.
“Not every student wants to take classes over the summer, but for some, it’s a great option to help facilitate graduating early, or catch up and avoid staying an extra year,” said Sen. Paul Sarlo (D-Bergen).
“Whatever their reason may be, if a TAG recipient wants to take summer classes, we should help them do that,” Sarlo said.
In all, Murphy’s proposed budget for the fiscal year that begins July 1 calls for spending on TAG to increase by $15 million, to a total of $492 million, according to budget documents. The increased funding would be used to boost the overall value of grants provided annually to a group of about 20,000 students who have the most significant financial needs.
The proposed increase in funding for the TAG program comes as Murphy is also planning as part of his fiscal year 2024 budget to increase funding for several other state-funded college-affordability programs, according to budget documents.
Assembly review imminent
The legislation members of the Assembly Appropriations Committee are scheduled to review on Thursday would authorize the awarding of TAG assistance to eligible students for the upcoming 2023 summer semester.
Black students face greater burden than white students, as push to cancel more debt continues
An estimate of the legislation’s fiscal impact indicates it would cost relatively little to enact at a time when the state’s annual budget has increased to over $50 billion annually, with a nearly $10 billion budget surplus.
The estimated cost of funding TAG assistance this summer, according to the nonpartisan Office of Legislative Services, is between $27 million and $36 million. Moreover, the cost of temporarily funding summer TAG awards could be fully covered with already budgeted, but unexpended balances, for student-aid programs, according to the OLS fiscal estimate.
“This legislation will utilize leftover funding from last year’s budget to expand the program to support this year’s summer sessions, allowing students to get ahead on their course load,” said Sen. Teresa Ruiz (D-Essex).
Taking TAG into the future
And while the policy change right now would only be authorized for summer courses taken this year, advocates say it could ultimately be extended to future years.
During recent testimony before the Senate Budget and Appropriations Committee, David Rousseau, vice president of the Association of Independent Colleges and Universities of New Jersey, pointed to ways a shift in policy could help students managing family and work demands stay on course to graduate within four years.
“These students are already paying for these courses with Pell grants, and with their own funds, which are most likely student loans, or maybe, even worse, credit cards,” he said.
In addition to helping TAG recipients, Rousseau also suggested the proposed policy change could provide a benefit to all students seeking to graduate early by increasing overall demand for summer courses.
“This expansion will help students graduate faster and with less debt,” Rousseau said.
Meanwhile, the measure is also being supported by the NJBIA (New Jersey Business & Industry Association) as a way to improve the pipeline between higher education and the workforce.
“Whatever we can do to bolster to students’ opportunities to accelerate their matriculation and ultimately enter the workforce is ideal,” said Althea Ford, NJBIA’s vice president of government affairs.
