What problem does it solve? Reduces the effects of sticker shock to parents wanting to send their children to college. NJCPC creates a guaranteed funding mechanism for universities in NJ. Keeps talented children from attending out-of-state schools. In-state schools can also compete for these students enlisted in NJCPC. NJCPC will also lessen the burden that students see today with student loans. This in turn would allow a recent graduate to invest in their respective future without the burden of paying back loans. What is your solution and who does it apply to? This idea takes the worry out of saving money for your child's college. This applies to all families in NJ and it applies to attending colleges/universities in NJ. The Florida Prepaid College Plan is a great starting point from which the NJDOE can mimic. This plan is a prepaid plan and not a savings plan like we see with a 529 plan. I would go a bit further and give a reduced rate for children who follow in their parent's footsteps (legacy) by going to the same in-state institution their parents attended. What is the anticipated impact? Lock in future college costs for less and save hard working families some money. Keeps NJ's talented future workforce in NJ. Investment is guaranteed by the State of NJ. Savings are realized by using tax-free money taken out of one's paycheck. Future graduates would come out of college without the burden of paying back student loans...a fresh start...imagine that? Having your head above water outweighs the drowning that kids experience nowadays coming out of college with loans that far exceed their payback potential. This is a slamdunk!
Unlike FL prepaid college plan, a 529 savings plan covers the cost of housing and books. Money saved in a 529 plan may grow tax-free over time and faster than PCP. Few months ago, Governor Murphy had announced ‘free community college’, all students will be eligible, regardless of income by the end of three years. This plan is definitely going to help NJ families. May be NJ should allow tax deduction for college tuition fees and/or education tax credits.
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