Bill > S03772

This bill establishes a comprehensive Student Loan Borrower Bill of Rights in New York, creating a new framework to protect student loan borrowers and regulate student loan servicers. The legislation creates a student loan ombudsperson within the Department of Financial Services who will be responsible for receiving and resolving borrower complaints, providing education about student loans, and compiling data on borrower experiences. The bill mandates that student loan servicers obtain a license from the state, undergo rigorous background checks, and adhere to strict ethical standards, including prohibitions against deceptive practices, misrepresentation, and fraudulent activities. Student loan servicers must maintain accurate records, report borrower payment histories to credit bureaus, and communicate transparently with borrowers and their authorized representatives. The law requires annual reporting to the governor and legislature about the work of the ombudsperson, including complaint statistics and recommendations for improving student loan servicing oversight. Notably, the bill defines key terms like "student education loan" and "student loan borrower" and applies to loans primarily used to finance education-related expenses for New York residents. The legislation aims to transform the student loan servicing landscape from a debt collection model to a more supportive loan counseling approach, with strong consumer protections and accountability mechanisms.

Education

https://www.nysenate.gov/legislation/bills/2025/S3772