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Bill > S1338
NJ S1338
NJ S1338Prohibits institutions of higher education and certain proprietary institutions from withholding transcript due to outstanding student account balance; establishes penalties for noncompliance.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill prohibits institutions of higher education and proprietary institutions licensed to offer academic degrees from withholding a student's transcript due to an outstanding balance on the student's account and establishes penalties for noncompliance. This bill prohibits an institution, due to an outstanding balance on a current or former student's account, from: · refusing to provide a transcript for a current or former student on the grounds that the student owes a debt;· conditioning the provision of a transcript on the payment of a debt, other than a fee charged to provide the transcript;· charging a higher fee for obtaining a transcript, or providing less favorable treatment of a transcript request because a current or former student owes a debt; or· using transcript issuance as a tool for debt collection. The bill further provides that failure by an institution to provide a transcript within 10 business days of the student's request will subject the institution to a penalty of $500 per day for each day of noncompliance.
AI Summary
This bill prohibits colleges and universities, referred to as "institutions," from withholding a student's official academic record, known as a transcript, solely because the student owes money to the institution, with the exception of the standard fee charged for processing the transcript itself. This means institutions cannot refuse to provide a transcript, demand payment of any outstanding debt (other than the transcript fee) before releasing it, charge more for a transcript, or treat a transcript request less favorably if a student has an unpaid balance. The bill aims to prevent schools from using transcripts as a debt collection tactic. If an institution fails to provide a transcript within 10 business days of a student's request, it will face a penalty of $500 for each day it remains non-compliant, with these penalties to be collected through legal proceedings.
Committee Categories
Education
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Higher Education Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1338 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1338_I1.HTM |
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