NJ A3422

Removes "expected family contribution" from the calculation of student financial need, redefining financial need as simply the cost of attendance under federal guidelines

Prohibits public, independent, and proprietary institutions of higher education from reducing institutional financial aid when students receive external scholarships unless total aid exceeds financial need

Requires institutions to return excess scholarship funds to the awarding organization and obtain that organization's approval before reducing any student's financial aid

Mandates that financial aid award letters clearly display total annual attendance costs, differentiate loans from grants and scholarships, and state that accepting external scholarships will not reduce other aid eligibility

Requires institutions to annually report to the Secretary of Higher Education on students receiving external scholarships, disaggregated by race, ethnicity, gender, income, first-generation status, and military affiliation