This bill mandates that institutions of higher education and certain proprietary institutions 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 institutions are required to promptly inform the Executive Director of the Authority and also disclose whether the student was a resident of the State at the time of their enrollment.

The legislation aims to ensure that the Higher Education Student Assistance Authority is kept informed about borrower defense loan discharges, which occur when a student is eligible for loan forgiveness due to misconduct by the institution related to federal loans or educational services. This act is set to take effect immediately upon passage.