This bill mandates that institutions of higher education and certain proprietary institutions in New Jersey must notify specific state officials when a former or current student is approved for borrower defense loan discharge by the United States Department of Education. The institutions are required to promptly inform the Executive Director of the Higher Education Student Assistance Authority and the Secretary of Higher Education about the approval. Additionally, they must disclose whether the student was a resident of New Jersey at the time of their enrollment.

The legislation aims to ensure that state education authorities are aware of borrower defense loan discharges, which occur when a student is eligible for loan forgiveness due to misconduct by the educational institution. This aligns with federal law, which allows for the discharge of federal Direct Loans under certain circumstances where the institution's actions have harmed the student. The bill is set to take effect immediately upon passage.