This bill establishes new regulations regarding the release of transcripts by institutions of higher education and proprietary institutions in New Jersey, particularly in relation to outstanding debts owed by students. It prohibits these institutions from refusing to provide transcripts for current or former students who have 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, charge higher fees, or use transcript issuance as a means of debt collection.

The bill allows institutions to require students to enter into a good faith repayment plan if they owe any amount for mandatory fees or if their non-mandatory charges exceed $2,000. 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 New Jersey consumer fraud act, subjecting institutions to penalties. The bill also clarifies that its provisions do not apply to students residing outside the United States.