Roadrunner Capitol Reports
Legislation Detail

HB 71/a STUDENT LOAN BILL OF RIGHTS ACT

Rep Christine Chandler

Actions: HPREF [2] HEC/HCEDC-HEC [5] DP-HCEDC [10] DP/a

Scheduled: Not Scheduled

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Summary:
 House Bill 71 (HB 71) enacts the Student Loan Bill of Rights Act and establishes licensing and duties for a student loan servicer; gives oversight to the financial institutions division of the Regulation and Licensing Department, delineates rules and allowances for discharge, payment options, cosigners, and fair practice; creates an ombudsman position; and establishes a fund. 
Legislation Overview:
 House Bill 71 (HB 71) establishes the Student Loan Bill of Rights Act (SLBR) and provides definitions and rules for lenders, loans, licensing, servicing and disability. The requirement/s and process for student loan services are established, with exemptions and prohibitions specified. Requirements for licenses are detailed, along with rules regarding licensure renewal, surrender, revocation, abandonment, transferability and assignability, and records retention.

A section is provided to detail required actions in the case of a student loan borrower’s written inquiry, an overpayment, or partial/underpayment.

Another section details prohibited acts, unfair trade practices, and related liabilities.

The SLBR explicitly prohibits the acceleration of private education loans and addresses limitations on collections from cosigners.
Allowances are made for monitoring, assessment, investigation and reporting for consumer protection purposes. Rights regarding judicial enforcement in cases of violation of the SLBR are detailed.

A nonreverting fund is created, consisting of fees, appropriations, and/or donations. The Unfair Trade Practices Act is updated to include references to the SLBR.


 
Current Law:
 Rights for general consumers, including recipients of student loans, are currently detailed in the Unfair Trade Practices Act, but the act does not provide the detailed rights and protections included in the SLBR. If the bill does not pass, such recipients will need to rely on existing law and protections. 
Amendments:
 Amended February 6, 2024 in the House Commerce and Economic Development Committee

HCEDCa/HB 71:  The House Commerce and Economic Development Committee amends House Bill 71 (HB 71) as follows:

1. On page 13, line 11, after "filed", insert "beginning", strike "or before" and before "of", insert "and before December 31". 

2. On page 13, line 13, strike "November 1 and before". 3. On page 13, line 14, after "expires", insert "and before March 1 of the following year".