This bill amends existing law to establish requirements for high school students in New Jersey regarding financial aid applications as a prerequisite for receiving a diploma. Starting with the 2023-2024 grade 11 class and for the following two school years, students and their parents or guardians must complete and submit a financial aid application unless a waiver is provided. The bill specifies that the waiver form must only require minimal personal information, including the student's name, contact details, and the signature of the individual submitting the waiver. Additionally, it allows school counselors to authorize waivers if parental consent cannot be reasonably obtained for students under 18.

Furthermore, the bill introduces strict limitations on the use and disclosure of waivers and personal information contained within them. School districts and charter schools are prohibited from using or disclosing this information without the informed consent of the student or their parent or guardian, in accordance with federal and state privacy laws. The Department of Education is tasked with ensuring that waiver templates include clear language about these privacy protections. The bill also clarifies that it does not invalidate any waivers submitted before its effective date, ensuring that those waivers remain subject to the new disclosure provisions.