summary
Introduced
01/31/2021
01/31/2021
In Committee
02/17/2021
02/17/2021
Crossed Over
Passed
Dead
03/20/2021
03/20/2021
Introduced Session
2021 Regular Session
Bill Summary
AN ACT RELATING TO FINANCIAL INSTITUTIONS; ENACTING THE STUDENT LOAN BILL OF RIGHTS ACT; PROVIDING FOR A STUDENT LOAN SERVICER'S LICENSE; DELINEATING THE DUTIES OF A STUDENT LOAN SERVICER; GIVING ADMINISTRATIVE RESPONSIBILITY AND ENFORCEMENT POWER TO THE FINANCIAL INSTITUTIONS DIVISION OF THE REGULATION AND LICENSING DEPARTMENT; PROVIDING FOR DISCHARGE OF PRIVATE EDUCATION LOANS UPON A SHOWING OF PERMANENT DISABILITY; REQUIRING THAT ALTERNATIVE REPAYMENT OPTIONS BE OFFERED TO BORROWERS EQUALLY; PROVIDING RIGHTS FOR COSIGNERS, INCLUDING NOTICE AND ACCESS TO INFORMATION; PROVIDING FOR COSIGNER RELEASE; PROHIBITING CERTAIN ACCELERATION OF PRIVATE EDUCATION LOANS; CREATING THE POSITION OF OMBUDSMAN; DEFINING CERTAIN VIOLATIONS OF THE STUDENT BILL OF RIGHTS AS UNFAIR AND UNCONSCIONABLE TRADE PRACTICES; CREATING A PRIVATE RIGHT OF ACTION; PROVIDING PENALTIES; CREATING THE STUDENT LOAN BILL OF RIGHTS FUND; MAKING AN APPROPRIATION.
AI Summary
This bill enacts the Student Loan Bill of Rights Act, which requires student loan servicers to obtain a license from the state's Financial Institutions Division. The bill establishes duties for student loan servicers, including responding to borrower inquiries, applying overpayments/prepayments as directed by the borrower, and transferring complete loan information when servicing is transferred. The bill also prohibits certain unfair or deceptive practices by student loan servicers and private education lenders, and provides for enforcement, penalties, and a private right of action for violations. Additionally, the bill requires private education lenders to offer flexible repayment options, provide notices to cosigners, and allow for cosigner release under certain conditions. The bill also creates the position of student loan ombudsman to assist borrowers and provide an annual report on the student loan landscape in the state.
Committee Categories
Budget and Finance, Justice
Sponsors (2)
Last Action
STBTC: Reported by committee with Do Pass recommendation (on 02/17/2021)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.nmlegis.gov/lcs/legislation.aspx?chamber=S&legtype=B&legno=164&year=21 |
| BillText | https://www.nmlegis.gov/Sessions/21%20Regular/bills/senate/SB0164.pdf |
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