ASSEMBLY HIGHER EDUCATION COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4881

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 9, 2024

      The Assembly Higher Education Committee favorably reports Assembly Bill No. 4881 with committee amendments.

As amended, 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 amended 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.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

· remove the requirement that institutions of higher education and proprietary institutions licensed to offer academic degrees also report the information required under the bill’s provisions to the Secretary of Higher Education; and

· update the bill’s synopsis to reflect committee amendments.