Bill Text: NJ S4161 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires institutions of higher education to distribute information on availability of allowance for dependent care expenses in determination of cost of attendance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-11-07 - Introduced in the Senate, Referred to Senate Higher Education Committee [S4161 Detail]
Download: New_Jersey-2018-S4161-Introduced.html
Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Requires institutions of higher education to distribute information on availability of allowance for dependent care expenses in determination of cost of attendance.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning information on the college dependent care allowance, amending P.L.2019, c.201, and supplementing chapter 3B of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2019, c.201 (C.18A:3B-6b) is amended to read as follows:
2. a. A public or independent institution of higher education or a proprietary institution licensed to offer academic degrees shall provide a financial aid "shopping sheet" to each prospective student as part of the institution's financial aid offer to that student. The purpose of the shopping sheet shall be to provide prospective students and their families with clear information on the costs, loan options, and estimated debt that the student will incur in attending the institution, and to allow students and families to easily evaluate and compare financial aid packages from different institutions.
b. The Secretary of Higher Education shall prescribe a model format for the shopping sheet required by subsection a. of this section. Each public or independent institution of higher education or proprietary institution licensed to offer academic degrees shall utilize either the model format developed by the secretary or the most current financial aid shopping sheet developed by the United States Department of Education or the Consumer Financial Protection Bureau. The model shopping sheet prescribed by the secretary shall include, at a minimum, the following information:
(1) the total cost for one year of attendance at the institution, including tuition, student fees, room and board, books and materials, and transportation and other educational costs;
(2) the total amount per year of grants and scholarships awarded to that student, including any grants and scholarships from the institution, federal grants, State grants, or other scholarships;
(3) the total net amount the student will owe for one year of attendance at the institution, after taking into account any grants and scholarships;
(4) the total amount per year of student loans and work study funds that the student is eligible for, broken down by federal Perkins loans, federal Direct Subsidized loans, federal Direct Unsubsidized loans, and federal, State, or institutional work study funds;
(5) the median borrowing in federal loans for undergraduate study at the institution and the average monthly payment over 10 years for this amount;
(6) the percentage of students from the institution who defaulted on their student loans; [and]
(7) in the case of a county college or a proprietary institution licensed to offer associate degrees, the percentage of students at the college or institution who graduate within three years as compared to the average rate at other county colleges or proprietary institutions as applicable, and in the case of a four-year institution of higher education or a proprietary institution licensed to offer baccalaureate degrees, the percentage of students at the institution who graduate within six years as compared to the average rate at other four-year public or independent institutions of higher education or other proprietary institutions as applicable; and
(8) in the case of a financial aid shopping sheet being provided to a prospective student with one or more dependents, the availability of, the procedures for requesting, and, if feasible, an estimate of the amount of an allowance for dependent care expenses established pursuant to paragraph 8 of 20 U.S.C. s.1087ll, provided that such information includes a statement informing the student that using the allowance for dependent care expenses may result in higher student loan obligations upon graduation.
c. The secretary, in developing the model format for the shopping sheet, shall consider any sample or model formats for a financial aid shopping sheet developed by the United States Department of Education or the Consumer Financial Protection Bureau.
(cf: P.L.2019, c.201, s.2)
2. (New section) a. An institution of higher education or a proprietary institution licensed to offer academic degrees shall provide for public inspection on its Internet website information concerning the availability of and the procedures for requesting the allowance for dependent care expenses established pursuant to paragraph 8 of 20 U.S.C. s.1087ll. The information shall include a statement that using the allowance for dependent care expenses may result in higher student loan obligations upon graduation.
b. An institution of higher education or a proprietary institution licensed to offer academic degrees shall provide with all paper applications for admission to the institution a hard copy of the information regarding the allowance for dependent care expenses posted pursuant to subsection a. of this section.
3. This act shall take effect
in the first full academic year following the date of enactment.
STATEMENT
The cost of attendance at an institution of higher education is calculated by each institution using elements set forth in federal law at 20 U.S.C. s.1087ll. In addition to expenses such as tuition, fees, and room and board, the cost of attendance may include an allowance, known as a "dependent care allowance," for students who have one or more dependents and who incur expenses for those dependents' care while attending the institution of higher education. Being eligible for a dependent care allowance increases the student's total cost of attendance, which could make the student eligible for additional financial aid dollars.
This bill seeks to increase awareness of the dependent care allowance so that more student parents may take advantage of additional financial aid while attending an institution of higher education. The bill would require that information on the availability of, the procedures for requesting, and, if feasible, an estimate of the amount of the allowance be provided on the financial aid shopping sheet given to a prospective student who has one or more dependents. The bill would also require an institution of higher education or a proprietary institution licensed to offer academic degrees to post on its Internet website information concerning the availability of and the procedures for requesting the dependent care allowance. Lastly, the bill requires an institution to provide with all paper applications for admission a hard copy of information regarding the dependent care allowance.
