Removes expected family contribution from calculation of financial need under circumstances in which public institutions of higher education may reduce student's institutional financial aid.

This bill changes how financial need is calculated for students at New Jersey public colleges and universities by removing the "expected family contribution" (a measure of what a family is expected to pay) from the formula. Previously, financial need was defined as cost of attendance minus expected family contribution, but the bill updates this to cost of attendance alone. As a result, public institutions can only reduce a student's institutional financial aid if total aid exceeds the full cost of attendance - rather than the previous lower threshold that included subtracting expected family contribution. This directly affects students receiving private scholarships, potentially allowing them to retain more institutional aid without reduction.