In the Wake of a Divorce in NJ, Who Pays for a Child’s College Education?

How do Divorced Parents Pay for College?

New Jersey is in the minority of states that grant the Judge discretion to require divorced or separated parents to pay for their children’s college education. The public policy and social goal of the Family Court is to encourage the higher education and ultimate success of children. Divorce or separation of parents should not preclude a child’s education or training. If a child has the ability and inclination to seek higher education the parents are usually required to contribute if they are financially able.

Factors that Influence Contributions to a Child’s College Education

The case of Newburgh v. Arrigo, 88 N.J. 529 (1982) has established the following criteria and factors for the court’s consideration:

1. whether the parent, if still living with the child, would have contributed toward the cost of the requested higher education;
2. the effect of the background, values and goals of the parent on the reasonableness of the expectation of the child for higher education;
3. the amount of the contribution sought by the child for the cost of higher education;
4. the ability of the parent to pay that cost;
5. the relationship of the requested funds to the kind of school or course of study sought by the child;
6. the financial resources of both parents;
7. the commitment to and aptitude of the child for the requested education;
8. the financial resources of the child;
9. the ability of the child to earn income during the school year or on vacation;
10. the availability of  financial aid in the form of college grants and loans;
11. the child’s relationship to the paying parent, including mutual affection, shared goals and responsiveness to parental guidance; and
12. the relationship of the education requested to any prior training and to the long-term goals of the child.

The court will only entertain an application for college contribution when the issue is ripe for settlement. However, the parties are free to negotiate the issue even before the children approach college age. In those instances, it is better to use a general clause in the property settlement agreement which acknowledges the party’s obligation to contribute but sets the actual dollar amount or percentage only when the costs are known and the party’s incomes are known. If the agreement is silent and the case law changes, the obligation may no longer exist.

The amount of contribution and the selection of colleges are often contested. The courts will frequently weigh the child’s academic ability against the selection of schools and the associated cost. Most judges will impose a requirement on the child to obtain all available loans, scholarships, grants, and aid. In some cases where the parents have low incomes or the child is at or below average academically, the contribution will be limited to a county college rate. Similarly, the courts may limit the parent’s contribution to the rates charged by New Jersey state universities – sometimes referred to as the “Rutger’s Rate.”  Consistent with the criteria above, the selection of schools must be discussed, in advance, with the parent being asked to contribute.

How College Contributions can Affect Child Support in NJ

College contribution may have an impact on the level of child support being paid, as the child support guidelines do not apply to college-aged students. Child support is usually renegotiated when a child attends college. The child support guidelines must first be applied to any remaining children under the age of 18. After that, the parent’s incomes are analyzed to determine their ability to contribute to college. Of course, if a child remains in the custodial parent’s home while attending college, the need for child support remains almost the same. Conversely, if a child lives outside the home of the parent, the child support previously paid should be adjusted to reflect the reduced cost to the parent. Factors to consider include time spent at school, time spent at the custodial parent’s home on weekends, holidays and summer vacation.

In sum, how do divorced parents pay for college? New Jersey does not have specific laws that govern the amount that divorced individuals must contribute to their child(ren)’s college education funds. Instead, the Court decides this after reviewing New Jersey’s criteria and the specific case at hand.

If you have questions or are facing this event yourself, the attorneys at Gruber, Colabella, Thompson, Hiben & Montella can help. Request a free consultation today!