This bill introduces comprehensive regulations for postsecondary education debt creditors in New Jersey, mandating their registration with the Commissioner of Banking and Insurance and the Nationwide Multistate Licensing System and Registry before extending loans. Creditors are required to provide detailed information about their lending practices, including total debt owed, default rates, and criteria for cosigner release, which will be publicly accessible on the commissioner's website. 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 establishing these regulatory requirements, the bill enhances protections for borrowers and cosigners, particularly concerning the cosigner release process. Creditors must inform borrowers and cosigners about the status of cosigner release applications and cannot impose restrictions that permanently bar borrowers from qualifying for release. 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 bill also mandates that borrowers or cosigners who are totally and permanently disabled must be released from their debt obligations, aligning with federal policies, and emphasizes transparency in interest rate criteria while prohibiting unfair debt collection practices.