TRENTON, N.J. – Legislation protecting college students from losing state tuition assistance because their family took an early withdrawal from a retirement account passed the Assembly Higher Education Committee today by an 8-0 vote. Sponsored by Assemblymen Ron Dancer and Kevin J. Rooney, the bill (A4763) exempts an early retirement withdrawal from the Higher Education Student Assistance Authority’s calculation to determine eligibility for TAG grants.
An early withdrawal from a retirement fund does not automatically exclude a family from TAG eligibility. All of a family’s income sources are weighted the same in HESAA’s formula.“When the high cost of college is piled on the backs of families already struggling, their only option may be using some money from a retirement account,” said Dancer (R-Ocean). “Assistance should not be jeopardized because of the need to tap into a retirement account.”