The bill amends Section 1 of P.L.2023, c.295 to establish a requirement for students in the 2023-2024 grade 11 class and the following two school years to complete and submit a financial aid application as a prerequisite for receiving a high school diploma from public high schools or charter schools. A waiver can be submitted by the student or their parent/guardian to exempt them from this requirement. The bill outlines the process for obtaining a waiver, including provisions for students under 18 years of age, and mandates that school districts and charter schools provide resources and notifications regarding this requirement.

Additionally, the bill ensures that no adverse actions will be taken against students who receive a waiver and clarifies that school counselors and employees are not obligated to assist with the financial aid application process. It also includes provisions for the confidentiality of waiver submissions and mandates the Executive Director of the Higher Education Student Assistance Authority to report on the number of financial aid applications and waivers submitted within three years of the act's effective date. The bill emphasizes compliance with federal and state privacy laws regarding student records.