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 New Jersey colleges and universities (including proprietary institutions) to notify the state's Higher Education Student Assistance Authority when the federal government approves a student loan discharge under "borrower defense" rules. Specifically, institutions must inform the Authority within a reasonable timeframe if a student - especially a New Jersey resident during enrollment - is approved for federal student loan forgiveness due to institutional misconduct. The law does not change federal loan rules but adds a state reporting requirement to help track discharges affecting residents. It takes effect immediately upon enactment.