Current through Register Vol. 56, No. 18, September 16, 2024
(a) An additional amount of $ 2,000, subject to funding available therefor, shall be credited toward the qualified higher education expenses of a designated beneficiary at the time of a qualified withdrawal provided:
1. The contributor demonstrates to the satisfaction of the Authority that the contributor participated in the program by making and not withdrawing a qualifying minimum initial deposit of $ 1,200 or that qualifying minimum annual contributions of $ 300.00 for a designated beneficiary were made by persons based on the time periods for crediting these contributions in (a)1i, ii, and iii below. In all cases involving the eligibility of a designated beneficiary for an NJBEST scholarship, the Authority reserves the right to make the final determination as to whether contributions have met the time periods as stated in this paragraph for participation in the NJBEST Program.
i. For students enrolling for the first time in the fall semester of an academic year, the first contribution to NJBEST must have been credited to the contributor's account more than 48 months prior to September 1st of that academic year;
ii. For students enrolling for the first time in the spring semester of an academic year, the first contribution to NJBEST must have been credited to the contributor's account more than 48 months prior to February 1st of that academic year; or
iii. For students enrolling for the first time in any trimester of an academic year at an institution operating on a trimester or other academic schedule, the first contribution to NJBEST must have been credited to the contributor's account more than 48 months prior to the first day of the month in which the student is first enrolled.
iv. First time enrollment is defined as the first time a student enrolls on either a full- or half-time basis at any institution of post-secondary education. For semester schools, if a student's first term of enrollment is for the summer or winter term, the succeeding fall or spring semester will be considered the student's first term of enrollment.
2. The designated beneficiary in (a) above demonstrates his or her undergraduate attendance or enrollment in a higher education institution in this State by submitting a certification by the higher education institution.
i. With respect to proprietary institutions, undergraduate attendance or enrollment must be in a degree granting program licensed or approved by the Commission on Higher Education; and
3. Either the contributor, if a person, or the designated beneficiary demonstrates to the satisfaction of the Authority that the contributor or designated beneficiary is a New Jersey resident. Residence for purposes of the NJBEST scholarship is defined in N.J.A.C. 9A:10-7.4(a)4.
(b) For every two additional years in which the minimum annual contribution of $ 300.00 is deposited in the account of a designated beneficiary and not withdrawn, an additional amount of $ 1,000, up to a maximum scholarship of $ 6,000, subject to funding available therefor, shall be credited toward the qualified higher education expenses of a designated beneficiary at the time of a qualified withdrawal provided the requirements at (a)2 and 3 above are met.
(c) The additional amounts provided under (a) and (b) above shall meet the requirements of a qualified scholarship within the meaning of section 117 of the Federal Internal Revenue Code of 1986, 26 U.S.C. §
117, for a designated beneficiary satisfying the requirements of (a) or (a) and (b) above.
(d) A designated beneficiary satisfying the requirements of (a) or (a) and (b) above shall be eligible to receive a scholarship in any term of enrollment at an eligible institution of post-secondary education in New Jersey, but shall not be eligible to receive more than one such additional amount provided under (a) or (a) and (b) above.
(e) A student must be enrolled at least half-time in a higher education institution to be eligible for an NJBEST scholarship.
