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. Specifically, it prohibits these institutions from refusing to provide transcripts to current or former students who have an outstanding balance of $2,000 or less in non-mandatory charges when the transcript is requested for 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 (other than the fee for the transcript itself), charge higher fees, or use transcript issuance as a means of debt collection.

The bill also 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 consumer fraud act, subjecting institutions to penalties and remedies available under that act. Furthermore, the bill clarifies that its provisions do not apply to students residing outside the United States.