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 annual updates on their operations, post model promissory notes on their websites, and deliver specific information to cosigners regarding their obligations and the implications of refinancing. The legislation also establishes penalties for non-compliance, including civil penalties up to $25,000 for registration violations, with knowing violations classified as a third-degree crime.

Additionally, the bill enhances borrower protections by granting the right to appeal denials for cosigner release and ensuring creditors maintain accurate records of these applications. It prohibits creditors from imposing restrictions that permanently bar borrowers from qualifying for cosigner release and limits the criteria for such releases to a maximum of 12 consecutive, on-time payments for debts executed after the bill's effective date. The legislation emphasizes transparency by requiring creditors to notify borrowers and cosigners in writing about any changes to loan terms and to provide necessary documentation during debt collection efforts. Overall, the bill aims to improve oversight and accountability in the postsecondary education debt market while safeguarding the rights of borrowers and cosigners.