Bill > S3280

This bill establishes new rules for how higher education and proprietary institutions can handle transcript releases for current and former students with outstanding debts. The bill defines key terms like "debt" (which includes outstanding account balances but excludes standard transcript fees) and specifies that these provisions apply only to students whose credits were not paid through federal or state financial aid programs. The legislation prohibits institutions from refusing to provide transcripts, charging higher fees, or using transcript issuance as a debt collection tool for outstanding non-mandatory charges of $2,000 or less. Institutions can require students to enter a good faith repayment plan for debts related to tuition, mandatory fees, or non-mandatory charges exceeding $2,000. The bill also mandates that transcripts must be released for students who need them to apply for or refinance student loans, and requires institutions to post their transcript release policies online. Importantly, the bill does not forgive student debts and allows institutions to continue pursuing debt collection through legal means. Violations of these provisions will be treated as unlawful practices subject to existing consumer protection penalties. The law aims to prevent institutions from using transcript withholding as a primary method of debt collection and ensure students can access their academic records.

Education

https://www.njleg.state.nj.us/bill-search/2024/S3280