Bill > HB218

This bill, the Student Loan Bill of Rights Act, enacts a number of provisions to regulate student loan servicers and private education lenders in New Mexico. Key provisions include: - Requiring student loan servicers to obtain a license from the state's Financial Institutions Division, with some exemptions for banks, credit unions, and the state Higher Education Department. - Establishing duties and prohibited practices for student loan servicers, such as responding to borrower inquiries, applying overpayments properly, and transferring complete borrower information when loans are sold. - Allowing for the discharge of private student loans upon a showing of the borrower's permanent disability, and requiring lenders to offer alternative repayment options. - Providing rights and protections for cosigners on private student loans, including access to loan information and processes for cosigner release. - Prohibiting private lenders from accelerating loan repayment except in cases of payment default. - Creating a student loan ombudsman position to assist borrowers and monitor industry practices, as well as a Student Loan Bill of Rights Fund to support the Division's enforcement efforts. - Authorizing the Financial Institutions Division to investigate, examine, and take enforcement actions against student loan servicers and lenders who violate the Act. - Allowing for private rights of action by borrowers against servicers who fail to comply with the Act.

Business and Industry, Justice

https://www.nmlegis.gov/lcs/legislation.aspx?chamber=H&legtype=B&legno=218&year=21