Governor Murphy, Senate President Sweeney, and Speaker Coughlin announce agreement on Fiscal Year 2022 Budget Proposals to make higher education and retirement more affordable
Governor Phil Murphy, Senate President Stephen Sweeney, and Assembly Speaker Craig Coughlin announced further agreements in the Fiscal Year 2022 budget that will invest in New Jersey’s long-term economic growth by making college more attainable and retirement more affordable.
The Governor and legislative leadership have agreed to a comprehensive college affordability package backed by Speaker Coughlin that helps those saving for college, as well as current students and those repaying loans. Among the measures agreed upon in the newly introduced Appropriations Act and relevant legislation are:
Maximizing College Affordability – The budget agreement includes legislation that creates new tax deductions for:
a) Contributions of up to $10,000 into an NJ Better Education Savings Trust (NJBEST) 529 account for households earning up to $200,000. The expected annual cost to the State is roughly $16 million in foregone revenue;
b) Contributions up to $10,000 for in-state tuition payments for households earning up to $200,000; The expected annual cost to the State is $67 million in foregone revenue; and
c) Payments of interest and principal toward New Jersey College Loans to Assist State Students (NJCLASS) of up to $2,500 per year for households earning up to $200,000. The expected annual cost to the State in foregone revenue is $4 million.
Matching NJBEST contributions for those most in need – To encourage college savings by lower-income residents, the State will also provide $10 million in matching payments of up to $750 for taxpayers with incomes below $75,000 when they make a contribution to open a new NJBEST 529 College Savings account.
Return to 529 News centerThe Governor and legislative leadership have agreed to a comprehensive college affordability package backed by Speaker Coughlin that helps those saving for college, as well as current students and those repaying loans. Among the measures agreed upon in the newly introduced Appropriations Act and relevant legislation are:
Maximizing College Affordability – The budget agreement includes legislation that creates new tax deductions for:
a) Contributions of up to $10,000 into an NJ Better Education Savings Trust (NJBEST) 529 account for households earning up to $200,000. The expected annual cost to the State is roughly $16 million in foregone revenue;
b) Contributions up to $10,000 for in-state tuition payments for households earning up to $200,000; The expected annual cost to the State is $67 million in foregone revenue; and
c) Payments of interest and principal toward New Jersey College Loans to Assist State Students (NJCLASS) of up to $2,500 per year for households earning up to $200,000. The expected annual cost to the State in foregone revenue is $4 million.
Matching NJBEST contributions for those most in need – To encourage college savings by lower-income residents, the State will also provide $10 million in matching payments of up to $750 for taxpayers with incomes below $75,000 when they make a contribution to open a new NJBEST 529 College Savings account.