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 requires colleges and universities (including proprietary institutions) to notify New Jersey's Higher Education Student Assistance Authority and the State Secretary of Higher Education when the U.S. Department of Education approves a federal "borrower defense" loan discharge for a student. It applies directly to institutions that receive federal loan discharges due to school misconduct, such as misleading practices or poor educational services that harmed students. Institutions must report the discharge approval and specify if the student was a New Jersey resident during enrollment. This ensures state authorities are informed to potentially assist residents with additional support or verification.