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 requires creditors to provide annual updates on their operations, post model promissory notes on their websites, and maintain accurate records. Key borrower protections include the right to appeal denials for cosigner release, a prohibition on requiring more than 12 consecutive on-time payments for such releases, and restrictions on accelerating payments or collecting from a cosigner's estate, except in cases of default. The bill also ensures that borrowers are not penalized for the death or bankruptcy of a cosigner if the debt is not significantly delinquent.

Additionally, the legislation mandates the release of borrowers or cosigners from their obligations upon determination of total and permanent disability, aligning with federal student loan policies. Creditors are required to notify affected parties within 30 days of such releases and cannot impose a new cosigner requirement if one is released. The bill emphasizes transparency in interest rate criteria, prohibits deceptive practices, and establishes a notice requirement before accelerating debt due to default. It also sets a six-year limit for initiating legal actions against borrowers for non-payment, allowing harmed borrowers or cosigners to seek legal recourse for damages. Overall, the bill aims to enhance borrower protections and improve oversight in the postsecondary education debt landscape.