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. It emphasizes borrower and cosigner protections, including the right to appeal denials of cosigner release requests, access to relevant documentation, and clear notifications regarding the status of these applications. The bill also limits the number of required consecutive on-time payments for cosigner release eligibility to 12 and prohibits creditors from imposing restrictions that permanently bar borrowers from qualifying for such releases.

Additionally, the legislation enhances transparency and accountability in the student loan industry by requiring creditors to report metrics like default rates and total debt owed to the commissioner, who will make this information publicly available. It prohibits creditors from accelerating payments except in cases of default and mandates the discharge of debts upon the total and permanent disability of the borrower or cosigner. Violations of these provisions can lead to civil penalties and criminal charges for knowing violations, thereby strengthening consumer protection and oversight in the postsecondary education debt market.