Prohibits institutions of higher education and certain proprietary institutions from withholding transcript due to outstanding student account balance; establishes penalties for noncompliance.

This New Jersey bill (S 424) prohibits colleges and universities from withholding student transcripts due to unpaid balances, directly affecting current and former students who owe money to their institution. It specifically bans institutions from refusing transcripts, charging extra fees for transcripts, or using transcript issuance as a debt collection tool - allowing only the actual cost of producing transcripts to be charged. Institutions failing to provide transcripts within 10 business days face daily penalties of $500 per day for noncompliance. The law applies to all public and private institutions of higher education licensed to grant degrees.