This bill establishes regulations regarding the withholding of student transcripts by institutions of higher education and proprietary institutions in New Jersey. It specifies that if a current or former student requests a transcript for purposes such as transferring to another institution, applying for graduate programs, or seeking employment, the institution cannot refuse to provide the transcript if the outstanding balance on the student's account is $2,000 or less for non-mandatory charges. Additionally, institutions are prohibited from conditioning the release of transcripts on the payment of debts (excluding transcript fees), charging higher fees, or using transcript issuance as a debt collection tool.

The bill allows institutions to require students to enter into a good faith repayment plan if they owe any amount for mandatory charges or more than $2,000 for non-mandatory charges. However, it explicitly states 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 the consumer fraud act, subjecting institutions to applicable remedies and penalties. The bill also clarifies that its provisions do not apply to students residing outside the United States.