Trenton – In an effort to encourage more New Jerseyans to pursue higher education, the Senate and Assembly today approved legislation sponsored by Senators Dawn Addiego and Sandra Cunningham that would establish the New Jersey College Affordability Act.
“Our goal with this bill is to make college more affordable for families and to encourage more New Jerseyans to pursue higher education by establishing financial incentives,” said Sen. Addiego (D-Atlantic / Burlington / Camden). “These incentives will hopefully encourage more families to set up a university fund for their children, giving them more freedom to decide where they want to pursue a university education.”
The bill, S-3997, would provide certain tax and other financial incentives to make college more affordable, encouraging more New Jersey families to save for higher education expenses.
“Due to the high cost of obtaining a degree, many families are discouraged from sending their teenagers to college,” said Senator Cunningham (D-Hudson), chair of the Senate Education Committee superior. “Our hope with this bill is that by providing tax incentives to families, we can help them bear the financial burden they might incur by sending a child to college.”
Under the bill, a taxpayer with gross income of $ 75,000 or less who opens a New Jersey Better Educational Savings Trust (NJBEST) program account would be eligible for a one-time grant of up to $ 750 in a game. dollar for dollar of the initial deposit into the account.
Additionally, taxpayers with gross income of $ 200,000 or less would be eligible for a gross income tax deduction for amounts contributed to the NJBEST account, with the deduction not exceeding $ 10,000 in contributions. These taxpayers would also be eligible to deduct a maximum of $ 2,500 from their gross income for the amount of principal and interest paid on a student loan under the New Jersey College Loans to Assist State Students (NJCLASS) program.
Finally, taxpayers with gross income of $ 200,000 or less will also be able to deduct amounts paid for in-state tuition fees, which would not exceed $ 10,000.
The bill was approved by the Senate by 38 votes to 0 and sent to the governor for final approval.