This bill establishes new regulations regarding the withholding of student transcripts by institutions of higher education and proprietary institutions in New Jersey. It prohibits these institutions from refusing to provide a transcript to a current or former student who has an outstanding balance of $2,000 or less in non-mandatory charges when the transcript is requested for specific purposes such as transferring to another institution, applying for graduate programs, or seeking employment. Additionally, institutions cannot condition the release of transcripts on the payment of debts (excluding transcript fees), charge higher fees, or use transcript issuance as a means of debt collection. However, institutions may require students to enter into a good faith repayment plan if they owe any amount for mandatory fees or more than $2,000 for non-mandatory charges.

The bill also stipulates that institutions cannot restrict transcript access for students who need them to apply for new or refinance existing student loans. Violations of these provisions are classified as unlawful practices under New Jersey's consumer fraud act, subjecting institutions to penalties and remedies outlined in that act. Furthermore, the bill clarifies that its provisions do not apply to students residing outside the United States.