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Bill > S1487


NJ S1487

NJ S1487
Requires institutions of higher education and certain proprietary institutions to notify Higher Education Student Assistance Authority of approved federal borrower defense loan discharge.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill requires institutions of higher education and proprietary institutions licensed to offer academic degrees to notify the Higher Education Student Assistance Authority of approved federal borrower defense loan discharge. Under the bill, an institution which receives notice from the United States Department of Education that a former or current student is approved for borrower defense loan discharge under federal law is required to promptly notify the Executive Director of the Higher Education Student Assistance Authority. The institution is also required to inform the executive director if the student was a resident of the State at the time of the student's enrollment in the institution.

AI Summary

This bill mandates that colleges and universities, including proprietary institutions that offer degrees, must inform the Higher Education Student Assistance Authority (HESAA) whenever a student is approved for a federal borrower defense loan discharge. Borrower defense is a federal program that allows students to have their federal student loans forgiven if their college engaged in misconduct or fraud. Specifically, if an institution learns that the U.S. Department of Education has approved a student for this type of loan discharge, the institution must quickly notify the Executive Director of HESAA. Additionally, the institution needs to tell HESAA whether the student was a resident of the state when they first enrolled.

Committee Categories

Education

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Higher Education Committee (on 01/13/2026)

bill text


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