The Education Investment Act establishes an equity financing program for education at selected public institutions of higher education in New Jersey. This program aims to provide undergraduate and graduate students with an income-contingent option for financing their education, allowing them to defer payment of tuition and other expenses until after they complete their studies. Once graduated, students will repay a fixed percentage of their income to the institution over a specified number of years. The bill mandates that participating institutions allow students to apply for deferment and repayment contracts, while also permitting them to limit enrollment based on cost management.

The terms of the deferment and repayment contracts will be determined by the participating institutions, potentially in collaboration with third-party investors. These contracts must outline key details such as the repayment percentage, duration, conditions for deferment or cancellation, and procedures for reporting and repayment. Additionally, the institutions will initially bear the costs of the program during the deferment period but may seek agreements with investors to cover these costs in exchange for a share of future repayments. The bill aims to alleviate the financial burden of fixed debt payments on graduates, encouraging them to pursue careers aligned with their interests rather than solely based on income potential.