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 disclose 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 penalties for non-compliance, including civil penalties up to $25,000 for registration violations and classifying knowing violations as a third-degree crime.

Additionally, the legislation 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 permanent restrictions on qualifying for such releases. For loans executed after the bill's effective date, creditors are limited to requiring no more than 12 consecutive, on-time payments for cosigner release eligibility. The bill also ensures that borrowers are not penalized for the death or bankruptcy of a cosigner if the debt is not significantly overdue and requires creditors to release borrowers and cosigners from debt obligations upon a determination of total and permanent disability. Overall, the bill aims to enhance transparency, accountability, and fairness in the postsecondary education debt market.