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

This bill (A4881) requires New Jersey colleges and universities to notify state education agencies when the federal government approves borrower defense loan discharge for a student. Specifically, institutions must inform the Higher Education Student Assistance Authority and the Secretary of Higher Education within a reasonable time after receiving federal notice of approved discharge. The bill also mandates that institutions report whether the student was a New Jersey resident during enrollment. This ensures state agencies are aware of discharged loans for potential state-level support or oversight, aligning with federal borrower defense rules that allow loan discharge when institutions engaged in misconduct harming students.