Financial Aid Information Session Program Recap

Thank you to Jamillah Barker from the Higher Education Student Assistance Authority (HESAA) for her presentation on essential financial aid information for students and parents as they prepare for college. Paying for college, especially the financial aid process, can be a complex and daunting aspect of the college admission process. However, Jamillah broke down many aspects of the different sources of funding as well as the process to apply for aid into manageable and easily digestible nuggets of information. So let’s buckle up and see what paying for college entails.

Sources and Types of Aid

Paying for college can be difficult and confusing, especially with the different types of funding available as well as the rising costs of higher education. Sources of financial aid include the federal government, state of New Jersey, the individual college or university, or other outside organizations such as churches or community organizations.  Any of these sources may make available one of more of the following types of financial aid – grants (free money), scholarships (free money), loans (must be repaid, often with interest), or employment opportunities. These different types of aid may be merit based or needs based so be sure to investigate each one to determine eligibility. In many instances, one source of financial aid will not be enough to cover the full cost of tuition.

Federal Aid

At the federal level, there are grants and loans available to students and their parents.  Pell ($7,395 max), SEOG ($4,000 max), and TEACH ($3,772 max) grants are available and are generally awarded based on need; if a student fails to meet the criteria after enrolling in these federal grant programs, those grants will turn into loans.  The federal government also provides all students with loan options, called the Federal Direct Loan Program.  Split between subsidized (no interest accrual while in school and need based) and unsubsidized, undergraduate students can borrow up to a specified maximum amount each year, which increases based on your current year in school.  The maximum for a freshman student is $3,500 subsidized and $2,000 unsubsidized. Graduate students can borrow up to and exceed the entire cost of a school years expenses.  Interest rates will change from year to year, but the current interest rate for 2025-2026 is 6.39% and a 1.057% origination fee.

State Aid

The state offers a wide variety of grants, scholarships and loans, most of which are administered by HESAA.  TAG is a need-based grant for NJ residents who attend an institution in New Jersey and are enrolled full-time in a qualifying degree program, which can range from $1,280 – $14,404.  Additionally, there is a part-time TAG grant that is specifically for students enrolled in a community college, which can range from $320 – $1,097.  There is also the Educational Opportunity Fund that is designed for educationally and economically disadvantaged students (up to $3,050) as well as the Governor’s Urban Scholarship, designed for disadvantaged students living in 1 of 14 designated areas and attending an institution in New Jersey who rank within the top 5% of their class at the end of their junior year and attain a 3.0 GPA.

The NJ STARS scholarship is designed for students who ranked in the top 15% of their high school class and are attending community college full time; this only covers the cost of tuition.  NJ STARS II is designed for those students in NJ STARS who move on to a 4-year state or private institution in New Jersey as a full-time student and have a family taxable income of less than $250,000; the annual amount is up to $2,500.  Another state scholarship is NJ GIVS (up to $2,000), specifically for women and minorities who enroll in a community college or technical school while pursuing a certificate or degree in a construction-related field.  Lastly, the Community College Opportunity Grant offers free tuition and fees at a community college for a student who’s household Adjusted Gross Income is less than $65,000.

The Garden State Guarantee provides free tuition and approved fees for eligible students during their third and fourth years at a public, 4-year state academic institution.  If the student’s household Adjusted Gross Income is less than $65,000, all tuition and fees will be paid; if a student’s household AGI is between $65,001 – 80,000, the total cost may not exceed $7,500 and if their AGI is between $80,001 – 100,000, the total cost may not exceed $1,000.

If you are looking for additional funding after all grants and scholarships, New Jersey does offer NJCLASS loans, designed to cover the rest of the costs of college not covered by other means.  Your interest rate is based off of the term of the loan, which can be 10, 15 or 20 years.  Each option has a 3% origination fee and interest rates ranging from 6.5 – 8.75% as of the 2025-2026 academic year.

Requirements

In order to qualify for state-based aid, students must meet the following requirements:

• File a FASFA or New Jersey Alternative Financial Aid Application
• Be a U.S. citizen, eligible non-citizen or qualify as a NJ Dreamer
• Be a New Jersey resident for at least 12 months and attend a New Jersey institution
• Be enrolled full-time* in an approved degree program
• Demonstrate financial need
• Meet all state deadlines for application and document submission

*Part-time TAG, NJSTARS, CCOG, and EOF awards are available for county college students enrolled in 6-11credits per semester.

The FASFA

In order to be eligible for most of these, as well as all institutional financial aid, the student must complete the FASFA each year.  The FASFA is free and designed to take a snapshot of the student and their household’s financial status in order to better determine eligibility for financial aid, mainly need-based aid.  The FASFA is available by October 1st each year.  The Expected Family Contribution is now renamed the Student Aid Index since the formula for calculating that figure has changed.  The SAI no longer looks at the number of children in school and businesses and farms will be considered as assets as well as child support payments.

Additionally, the term “parents” will be changes to “contributors”.  This version of the the FASFA now requires students and any contributors to consent to having your tax information imported from the IRS.  In addition to the FASFA, the student and all contributors will need to register for separate FSA ID’s in order to electronically sign the FASFA.  The earlier you fill out the FASFA, the better and it is a good rule to complete all of your forms and documentation by the earliest date based on the dates listed by each school the student wishes to attend.

Components of the FASFA include:

• student demographics
• student income and assets
• student dependency status
• parent demographics
• parent(s) income and assets
• household size
• federal means tested benefits

If you are applying for any state-based grants, scholarships, or loans, you will need to file a New Jersey Alternative Financial Aid Application through NJFAMS.

CSS Profile

Approximately 400 colleges and organizations use the CSS profile to determine how they will award institutional aid, particularly independent (private) colleges and universities. The CSS profile is available on October 1st each year and collects more comprehensive income, asset, and household information than the FASFA, using information from 2 years prior. If the adjusted household income is less than $100,000, there is no application fee; otherwise, the first application fee is $25 and each subsequent application is $16.

More Information

For more information on any of the financial aid options listed above or help navigating the process, please contact Jamillah Barker at jbarker@hesaa.org or 609-588-3300 ext. 1404.