SENATE HIGHER EDUCATION COMMITTEE

STATEMENT TO

SENATE, No. 3871

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 16, 2026

      The Senate Higher Education Committee reports favorably and with committee amendments Senate Bill No. 3871.

      As amended, this bill directs the Higher Education Student Assistance Authority (HESAA) to increase the income protection allowance used when calculating financial eligibility of an independent adult student for a tuition aid grant to equal the income protection allowance used by the United States Department of Education when calculating eligibility for an independent adult student for a federal Pell grant. 

     In the formulas used by the State and federal government for calculating student eligibility for tuition aid grants and Pell grants respectively, a certain amount of an independent adult student’s income is disregarded.  This amount is referred to as the Income Protection Allowance (IPA).  The IPA used by the State is significantly lower than the IPA used by the federal government.  This bill seeks to align the IPA used by HESAA for independent adult students with that used by the United States Department of Education.  

COMMITTEE AMENDMENTS:

      The committee made a technical amendment to the bill’s title.