Colleges'​ Disregard of NJ's Scholarship Displacement Ban

In 2021, New Jersey became the second state in the nation to outlaw scholarship displacement. The current law protects students who attend New Jersey public higher institutions. 

In February 2023, Senator Troy Singleton introduced an amendment bill (S3566) to extend the ban to private universities and proprietary institutions.

Our full report examines New Jersey's 36 four-year accredited higher institutions' scholarship displacement practices and private (i.e., external and outside scholarship) policies.

New Jersey's public four-year higher institutions have failed to update their private scholarship policies on their websites to reflect the state law.

In 2021, New Jersey became the second state in the nation to outlaw scholarship displacement. The current law protects students who attend New Jersey public universities. New Jersey's public higher four-year higher institutions have failed to update their private scholarship policies on their websites to reflect the state law. We researched a total of 11 public four-year accredited institutions in New Jersey.

• 18% (2/11) of NJ 4-year public accredited higher institutions reflect on their websites as of March 11, 2023, that the institutions decrease institutional scholarships/grants after receipt of a private scholarship. Therefore, based on the higher institutions’ websites, these higher institutions are in non-compliance with the NJ state law.

• 63% (7/11) of NJ 4-year public accredited higher institutions reflect on their websites as of March 11, 2023, that the order in which the institutions displace a student’s private scholarship varies depending on the individual student’s situation.

• 18% (2/11) of NJ 4-year public accredited higher institutions did not have their private scholarship policies on their websites.

Our organization has received at least one call from a student whose scholarships were displaced while the ban was in place. This student's institution's outside policy varied. Gratefully, that student contacted us, and we helped the student get their scholarship back. 

Outlawing scholarship displacement is not enough. There must be oversight, enforcement, and public awareness included in these bills and laws. New Jersey's amendment bill contains all three components. To review the full report, please get in touch with DISSCHOLARED at disscholared@yesshecancampaign.org or you can direct message me on Linkedin. 

The purpose of scholarships is to supplement federal, state, and institutional aid, not supplant the aid. 

Thank you to the 350+ people who have subscribed to my newsletter thus far. Feel free to reach out with any questions. To learn more about our DISSCHOLARED™ resources, database, events, and volunteer opportunities, visit www.disscholared.org. If you need assistance navigating the practice of scholarship award displacement, please visit www.disscholared.org/consulting. 

The fight to dismantle scholarship award displacement continues.