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NM HB71

NM HB71
Student Loan Bill Of Rights Act


summary

Introduced
01/16/2024
In Committee
02/08/2024
Crossed Over
Passed
Dead
02/08/2024

Introduced Session

2024 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 STUDENT LOAN OMBUD; DEFINING CERTAIN VIOLATIONS OF THE STUDENT LOAN BILL OF RIGHTS ACT AS UNFAIR AND UNCONSCIONABLE TRADE PRACTICES; CREATING A PRIVATE RIGHT OF ACTION; 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 sets forth requirements for student loan servicing, including responding to borrower inquiries, allocating overpayments, and providing information to borrowers. It also prohibits certain unfair and deceptive practices by student loan servicers and private education lenders, and provides for the creation of a student loan ombudsman position to assist borrowers. The bill allows for administrative and judicial enforcement, and creates a Student Loan Bill of Rights Fund to carry out the Act's provisions.

Committee Categories

Education

Sponsors (3)

Last Action

Action Postponed Indefinitely (on 02/08/2024)

bill text


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