- We're now joined by Margo Chaly, who's Executive Director of the New Jersey Higher Education Student Assistance Authority.

Now, Margot, there is an acronym.

What is it?

Is it HESAA?

H-E-S-A-A.

- That's right.

HESAA.

And we always like to say students are at the center of everything we do.

- Now the websites up right now.

What do you do for students exactly?

- HESAA's mission is to provide a financial aid to New Jersey residents who pursue a college degree in the Garden State.

And we administer over half a billion dollars every year in grants and scholarships.

Our largest financial aid program, the Tuition Aid Grant, known as TAG.

- TAG, right.

- TAG supports nearly 80,000 students a year.

And this is a testament to the investment in higher education, especially under the Murphy administration, to make sure college in New Jersey is affordable and accessible.

- I mentioned before we got on the air that the 529 College Savings Program has been a big part of how we and our family have helped to fund the education of our children on the college level.

But explain to folks what the heck is a 529 plan and how does someone start it, access it, make it work for them, for their family.

- That's right.

The other side of our house, beyond the financial aid and financial literacy resources, is saving for college.

And the NJBEST 529 College Savings Program allows families to invest in themselves and their young learners.

Now, the benefit of a 529 College Savings Account is that you don't have to be a parent to open one.

Any relative or friend of a family member can open an NJBEST 529 College Savings for a young learner.

And that's what we encourage that these accounts are open when children are young.

So there's plenty of time to invest and saving early and often is what we say.

This is also another opportunity for families to talk about financial aid literacy, saving, budgeting in general, and any opportunity to chip away and make a contribution to an NJBEST 529 College Savings Account allows this nest egg to grow and eventually be used for educational expenses like college tuition.

- Okay, so let's put this in context.

I only know about this because we've done it for four children at different times, and I also know that the way that investment is managed is very cautious.

I'm not gonna turn this into a commercial for 529s, but I also know as children become closer to college age, that portfolio, particularly in uncertain times in the equity market, it becomes even more conservative and protected.

Is that a fair assessment, Margo?

- That's right.

With our partners at Franklin Templeton, we make strategic and wise investments in the plan so that there are these funds available when it comes time to use them.

Usually around beneficiaries age of 18, but there is no age limit on these NJBEST 529 accounts either.

Which is- - Oh, oh, what do you mean there's no age limit?

What does that mean?

- You can take out the funds when you need them.

So you might not go to college right after high school and you can continue to invest that money and when it's time for you to go to college, you can withdraw your funds and use them as necessary.

- Can they be used for other educational purposes other than "college?"

- That's right.

Eligible education expenses do actually include high schools, vocational programs.

The reality is you can even use savings in a 529 to pay off student loans.

- You can.

That's legal, ethical, appropriate, right?

- That's correct.

And with the changes in the federal IRS code a few years ago, you can actually roll any funds into an IRA plan as well up to $35,000 - An individual retirement account.

- That's right.

- Say someone says, "Well, wait a minute, how much do I have to have to get into this?"

How much do I have to have to get it started?

The 529 College Savings Plan, NJBEST College Savings Plan.

- It only takes $25 to open an NJBEST 529 account.

But of course, anytime there's available funds, perhaps after a birthday or kindergarten graduation or some other celebratory milestone in a young learner's life or family members just want to contribute that funds can be deposited at any time.

Contributions can be made throughout ongoing.

- How the heck did you get into this, Margo?

You're a lawyer by background.

- I am, and I've been at HESAA now for about four years.

My journey here started as Chief of Staff and then a year ago when our former Director moved on to his next adventure, I was able to step into this role and appointed by the Governor to have the honor to serve New Jersey by leading this agency.

And when you talk about financial aid, the generous supports that we provide, as well as this mammoth institution of NJBEST 529 Saving for College, it is a wonderful opportunity to make sure students are aware that there is an academic journey beyond high school and that if they choose to pursue it, we are here to help them not only with the financial resources, but all the supports throughout what can be a complicated process.

- Speaking of complicated, I got a minute left.

FAFSA, go ahead.

What does it stand for?

Financial- - FAFSA is the Free Application for Federal Student Aid, and FAFSA is the gateway application that New Jersey residents can use to find out their eligibility for both federal and state aid.

So it's one of- - How do you navigate it?

Can people go on your site to find out how the heck to navigate the FAFSA?

- That's right, HESAA.org, we have all kinds of contact information.

You can call us, you can email us, you can sign up for one of our virtual webinars, and we walk through, walk with families through this process to make it as easy as possible.

We'll answer any of your questions and we also do some live in-person events.

Just reach out to us and we can come to your neighborhood.

- We could not end this conversation about college affordability without talking about FAFSA.

And Margo Chaly is the Executive Director of the New Jersey Higher Education, excuse me, Higher Education Student Assistance Authority, otherwise known as HESAA.

Margo, thank you so much.

We appreciate it.

- Thank you so much, Steve.

- I'm Steve Adubato, that's Margo Chaly.

We'll see you next time.

- [Narrator] Think Tank with Steve Adubato is a production of the Caucus Educational Corporation.

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