Gabrielle Charette, Esq., Executive Director NJ Higher Education Student Assistance Authority (HESAA)

I.FY 2016 Budget II.Proposed FY 2017 Budget III.TAG Data Collection Analysis IV.Processing Updates V.Prior-Prior Year VI.NJCLASS Refinance Program 1

Tuition Aid Grant (TAG) Total Funding:$386.4 million Increase over Original FY 2015:$ 30.6 million Number of Awards:66,048 (2,000 new awards) Award Amount Increase:1.5% for all awards, all institutions, all sectors, all eligibility indexes 2

Tuition Aid Grant Maximum Awards by Sector: County Colleges:$ 2,628 State Colleges/Universities:$ 6,958 Independent Non-Public:$12,196 Rutgers:$ 9,284 NJIT:$10,772 3

Maximum TAG Awards by Sector Percentage of Tuition Covered County Colleges:81.46% State Colleges/Universities:84.65% Independent Non-Public:40.66% Rutgers:82.77% NJIT:80.18% 4

Part-Time TAG for County College Students Total Funding:$8.737 million Difference over FY 2015:-$1.1 million Award Amount Increase:1.5% 5

Part-Time TAG for County College Students Maximum Semester Awards ½ Time ¾ Time $ $

NJ STARS Total Funding:$5.0 million Difference Over FY 2015:-$500,000 Funds all eligible students who opt to take advantage of scholarship. 7

NJ STARS II Total Funding:$1.9 million Difference over FY 15:-$1.1 million Funds all eligible students who opt to take advantage of scholarship. 8

Governor’s Urban Scholarship Total Funding:$945,000 Increase over FY 2015:$245,000 Award:$1,000 with a $500 persistency bonus 9

On February 16, 2016, Governor Christie delivered his proposed Fiscal Year 2017 budget to a joint session of the Legislature. 10

The Governor’s budget provides level funding for all HESAA programs EXCEPT TAG, which would receive an increase. 11

12 TAG Proposed Funding:$ million Increase over FY 2016:$ million New Awards:2,000 Award Amount Increase:Not to exceed 2.0%

13 Higher Education Budget Hearings Senate:Thursday, April 14, 2016 Assembly:Wednesday, May 4, 2016

14 Level funding is not a concern. Budgetary footnote language allows transfer of funds among programs.

15 November 2015 was the first time that institutions participating in the TAG program were required to report graduation rates for TAG recipients. 100% cooperation and compliance!

16 HESAA has analyzed data with a fine tooth comb. While one year does not a trend make, good news came from the first set of reports.

17 County College Sector At 100% of Normal Time to Completion (NTC): 4 institutions reported that TAG students did better than the general population. Kudos to: Essex County College, Rowan College at Gloucester County, Salem Community College, and Warren County Community College.

County College Sector At 150% of Normal Time to Completion (NTC): 7 institutions reported that TAG students did better than the general population. Kudos to: Bergen Community College, Camden County College, Essex County College, Passaic County Community College, Raritan Valley Community College, Rowan College at Gloucester County, and Union County College. 18

County College Sector When TAG students did not do better than the general population, the negative differential was: At 100% of NTC:.03% % At 150% of NTC:.28% - 4.6% 19

State College/University Sector At 100% of Normal Time to Completion (NTC): 1 institution reported that TAG students did better than the general population. Kudos to: Montclair State University. 20

21 State College/University Sector At 150% of Normal Time to Completion (NTC): 5 institutions reported that TAG students did better than the general population. Kudos to: Montclair State University, New Jersey City University, Ramapo College of NJ, Stockton University, and William Paterson University of NJ.

State College/University Sector When TAG students did not do better than the general population, the negative differential was: At 100% of NTC:.37% % At 150% of NTC:.16% % 22

AICUNJ and Proprietary Schools At 100% of Normal Time to Completion (NTC): 6 institutions reported that TAG students did better than the general population. Kudos to: DeVry University, Drew University, Eastwick College, Felician University, Princeton University, and Stevens Institute of Technology. 23

AICUNJ and Proprietary Schools At 150% of Normal Time to Completion (NTC): 12 institutions reported that TAG students did better than the general population. Kudos to: Berkeley College, Bloomfield College, Caldwell University, DeVry University, Drew University, Eastwick College, Felician University, Monmouth University, Princeton University, Rider University, Seton Hall University, and Stevens Institute of Technology. 24

AICUNJ and Proprietary Schools When TAG students did not do better than the general population, the negative differential was: At 100% of NTC:.11% % At 150% of NTC:.58% % 25

Public Research Sector At 100% of Normal Time to Completion (NTC): 1 institution reported TAG students did better than the general population. Kudos to: NJIT. 26

Public Research Sector At 150% of Normal Time to Completion (NTC): 1 institution reported TAG students did better than the general population. Kudos to: NJIT. 27

Public Research Sector When TAG students did not do better than the general population, the negative differential was: At 100% of NTC:6.33% % At 150% of NTC:2.45% - 5.1% 28

Electronic Short AIRs Electronic Verification Letters Electronic Follow-up Letters Electronic Long AIRs (when new HESAA grant system is operational in AY ) 29

The online short AIR is accessible through HESAA’s E-Access student portal and HESAA’s E-Administrator financial aid administrator portal. Organized by award year under the “Notice” tab, the online short AIR will be presented in PDF for convenient printing and storage on most devices. When a student first views the online short AIR, the date and time will be recorded to provide HESAA staff and financial aid administrators with confirmation that the student has viewed his/her online short AIR. 30

HESAA will send an directly to the student to alert him or her to view the document by logging into HESAA’s E-Access student portal. If the student does not view the online short AIR in a week, a second will be sent. If the student does not view the online short AIR in another week, HESAA will send a paper alert via postal mail. HESAA will also send a paper alert via postal mail if the student does not provide an address on the FAFSA. 31

On September 14, 2015, President Obama announced two major changes to the Free Application for Federal Student Aid (FAFSA) process that together are designed to make it easier to apply for financial aid and to know what aid is available earlier. 32

1) Commencing with the AY financial aid application cycles and continuing each year thereafter, the FAFSA will be available on October 1 of the year prior to the upcoming award year. 2) Commencing in AY , FAFSA income information will be collected from one year earlier, prior-prior year. The AY FAFSA will use tax year 2015 information instead of tax year 2016 information. 33

In 2016 NJCLASS will offer a refinancing loan program for the first time. This program will allow qualified borrowers who are current residents or have student loans from a New Jersey institution to refinance Federal student loans and NJCLASS loans. 34

0% origination fee and a low fixed interest rate. Term of the loan will be 10 years, with immediate repayment of principal and interest. Unlike the NJCLASS undergraduate loans, the borrowers for the refinance loans will be out of school, employed, and in good standing with their current lender. 35