STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman CODY D. MILLER
District 4 (Atlantic, Camden and Gloucester)
Assemblyman MICHAEL VENEZIA
District 34 (Essex)
Co-Sponsored by:
Assemblywoman Morales and Assemblyman Hutchison
SYNOPSIS
Requires institutions of higher education and certain proprietary institutions to notify Higher Education Student Assistance Authority of approved federal borrower defense loan discharge.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning student loan discharge and supplementing Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An institution of higher education or a proprietary institution licensed to offer academic degrees which receives notice from the United States Department of Education that a former or current student is approved for borrower defense loan discharge pursuant to federal law shall promptly notify the Executive Director of the Higher Education Student Assistance Authority. The institution shall also inform the executive director if the student was a resident of the State at the time of the student’s enrollment in the institution.
2. This act shall take effect immediately.
STATEMENT
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.
Under federal law, borrower defense to repayment is a legal ground for discharging federal Direct Loans. A borrower may have a defense to repayment if an institution engaged in certain misconduct related to the making of a federal loan or the educational services provided by the institution which caused harm to a student warranting a full discharge of the student’s applicable federal Direct Loans.