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Bill

A 5117

Requires registration of postsecondary education debt creditors; establishes protections for borrowers.

2026-2027 Regular Session Introduced by Carmen Morales

The bill would require postsecondary debt creditors and servicers to register with a state authority to boost transparency, protections, and oversight for borrowers.

Introduced, Referred to Assembly Higher Education Committee
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Bill Summary · A 5117

Bill Summary: A 5117 (Session 222, New Jersey)

Purpose and intent

A 5117 seeks to safeguard postsecondary education borrowers by establishing a registration framework for debt creditors that collect or service postsecondary education debt. The bill aims to improve transparency, accountability, and borrower protections in the student loan context within New Jersey.

Key provisions and changes

  • Registration of creditors and servicers

    • The bill would require creditors and debt servicers that engage in collection or servicing of postsecondary education debt to register with a designated state authority.
    • Registration would likely include identifying information about the entity, ownership, contact details, and the specific types of debt activities conducted in New Jersey.

  • Consumer protections for borrowers

    • The measure creates or enhances protections for borrowers dealing with postsecondary education debt, potentially including limits on abusive collection practices, required disclosures, and dispute resolution pathways.
    • Provisions may address accuracy of information, validation of debts, and prohibitions on certain debt-collection practices.

  • Regulatory oversight and enforcement

    • The bill would establish enforcement mechanisms for noncompliance, which could include penalties, fines, or suspension of registration.
    • There may be a role for an administrative agency (such as the state higher education authority or consumer protection office) to review registrations, investigate complaints, and monitor compliance.

  • Consumer education and transparency

    • Provisions could require creditors/servicers to provide clear information about the debt, including total amounts due, interest accrual, payoff options, and borrower rights.
    • Potentially, a consumer-facing portal or contact resources for borrowers to obtain assistance.

Who is affected

  • Postsecondary education debt creditors and servicers operating in New Jersey or servicing New Jersey borrowers.
  • Borrowers of postsecondary education loans who reside in New Jersey and may interact with registered creditors/servicers.
  • Institutions and lenders engaging in student loan programs that fall under the bill’s scope, depending on the exact language about what constitutes “postsecondary education debt.”

Procedural and timeline aspects

  • Introduction and referral

    • Introduced and referred to the Assembly Higher Education Committee on May 18, 2026.
    • Co-sponsor: Carmen Morales, indicating legislative support in the sponsor group.

  • Next steps (typical legislative process)

    • The committee would review the bill, hold hearings, and potentially amend provisions.
    • If approved by the committee, the bill would proceed to the full Assembly for consideration, and subsequently to the Senate (and then to the governor for signature) as part of the standard New Jersey enacted process.

Notes and considerations

  • The summary reflects the bill’s stated aims to regulate debt creditors and enhance borrower protections in the realm of postsecondary education debt.
  • Specific dollar amounts, registration fees, enforcement penalties, and detailed procedural timelines would appear in the bill’s text and any amendments adopted during Committee consideration.
  • The bill’s impact depends on the exact definitions of “postsecondary education debt,” the scope of entities required to register, and the concrete enforcement tools granted to the administering agency.

Compiled from official sources — confirm details with the bill’s official record.

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