This bill mandates that institutions of higher education and certain proprietary institutions in New Jersey must notify the Higher Education Student Assistance Authority when they receive notice from the United States Department of Education regarding a former or current student who has been approved for borrower defense loan discharge. The notification must be prompt and must also include information about whether the student was a resident of New Jersey at the time of their enrollment.

The bill aims to ensure that the Higher Education Student Assistance Authority is informed of borrower defense loan discharges, which are designed to protect students from financial harm due to misleading or fraudulent practices by educational institutions. The act is set to take effect immediately upon passage.