NJ bill stifles colleges but saves you lots of money

Your kid commits to college at one price, but that price can change year after year.

To make the college experience less of a mystery for families, New Jersey lawmakers have introduced a proposal that puts a cap on annual tuition hikes.

"We have to do a better job of controlling and reining in costs, especially when it comes to higher education," Assemblyman Cody Miller, D-Gloucester, a sponsor of the legislation, told New Jersey 101.5.

Official introduction of the measure occurred just a couple weeks ahead of Rutgers University's decision to increase tuition by 4% for the 2024-2025 academic year. That's on top of a 6% hike the year prior.

NJ's tuition proposals

Specifically, Miller's bill blocks public colleges and universities in the Garden State from raising in-state tuition by more than 2% from the previous academic year.

"We're in a really important moment right now where it's unaffordable to live in the state of New Jersey and people are just scrounging to get by," said Miller, who works in higher-ed and regularly hears about students facing financial hardships.

Other tuition-cap measures were introduced in the New Jersey Legislature earlier this year. One would cap annual hikes at 4%. Another would freeze a student's tuition for four years at the first-year rate.

Several states already have a tuition cap or freeze in place.

Enrollment cliff?

Analysts anticipate colleges to come face to face with a so-called enrollment cliff starting in 2025 or 2026, with the number of U.S. high school graduates expected to decline on a yearly basis.

With less demand, it's feared that institutions will aim to boost revenue through the students who are already enrolled.

"These colleges can charge whatever they want," Miller said. "If we don't head this off right now, not only are people going to not pursue higher education, but it's going to be out of reach for many families and I don't want that to happen."

Miller's bill has been referred to the Assembly Higher Education Committee.

With such a cap in place, Miller said, New Jersey would be wise to devote more funding to higher education.