This bill introduces comprehensive regulations for postsecondary education debt creditors in New Jersey, requiring them to register with the Commissioner of Banking and Insurance and the Nationwide Multistate Licensing System and Registry before issuing loans. It mandates creditors to provide detailed information about their lending practices, including the number of debts and default rates, which will be publicly accessible. The bill imposes significant penalties for non-compliance, including civil penalties up to $25,000 for registration violations and categorizing knowing violations as a third-degree crime.

In addition to registration requirements, the bill enhances protections for borrowers and cosigners, particularly concerning the cosigner release process. Creditors must clearly communicate eligibility criteria for cosigner release and cannot impose permanent restrictions on borrowers. For loans executed after the bill's effective date, creditors can only require a maximum of 12 consecutive on-time payments for cosigner release eligibility. The legislation also ensures that borrowers or cosigners who are totally and permanently disabled are released from their debt obligations, aligning with federal policies. Overall, the bill aims to improve transparency, accountability, and fairness in the postsecondary education debt market while safeguarding the rights of borrowers and cosigners.