Bill > A01146

This bill establishes a comprehensive Student Loan Borrower Bill of Rights in New York State to protect student loan borrowers and improve their interactions with student loan servicers. The legislation creates a Student Loan Ombudsperson within the Department of Financial Services to assist borrowers by receiving and resolving complaints, compiling data on borrower issues, providing education about student loan terms, and making recommendations to improve student loan policies. The bill also introduces a licensing requirement for student loan servicers, mandating that they obtain a license from the commissioner and prohibiting them from engaging in deceptive practices such as misrepresenting loan terms, misapplying payments, or providing inaccurate credit information. Additionally, the law requires student loan servicers to maintain detailed records, comply with federal regulations, and allows the commissioner to conduct investigations and examinations. The bill further requires an annual report to the governor and legislature detailing the work of the student loan ombudsperson, including the number and types of complaints received and recommendations for improving oversight. The legislation aims to transform student loan servicing from a debt collection model to a more supportive loan counseling approach, providing New York student loan borrowers with enhanced protections and resources.

Education

https://www.nysenate.gov/legislation/bills/2025/A1146