Month: July 2021

Governor Phil Murphy recently signed the Fiscal Year 2022 Appropriations Act into law, which included several provisions that will make college more affordable for some NJ taxpayers. The Act creates new tax deductions for households with income below $200,000, who will be able to deduct their first $10,000 in contributions to an NJBEST 529 savings plan, $10,000 in in-state tuition payments and $2,500 in NJCLASS student loan payments. Additionally, NJ taxpayers with annual income under $75,000 will get a matching contribution up to $750 for contributions into the NJ 529 plan. NJ is now among 35 states to offer a tax deduction for 529 contributions and among 15 states to offer a matching contribution. Also, NJ's Community College Opportunity Grant (CCOG) currently offers residents with income under $65,000 free tuition for two years at an in-state community college and the Act extends this benefit to a student’s 3rd and 4th year at a 4-yr in-state college.

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A scholarship available to students who attend New Jersey colleges and contribute to the NJ 529 (NJBEST) was recently doubled from $1,500 to $3,000. To be eligible for the full scholarship, the NJBEST account must be open for at least 12 years and received at least $3,600 in contributions according to the new regulations approved by the state Higher Education Student Assistance Authority board. The scholarship is not available to students who attend an out-of-state college. Unlike other state scholarships, the NJBEST scholarship is not funded by taxpayers. - it is funded by the fees investors pay to maintain the NJBEST accounts. Under a law Gov. Phil Murphy signed last year, the scholarship is available in any term that a student enrolls at a NJ higher education institution — not just during a student’s freshman year.

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