Vote Smart's Synopsis:

Vote to pass a bill that establishes a Student Loan Ombudsman and a student loan "Bill of Rights."

Highlights:

• Requires the commissioner of the banking department to designate a student loan ombudsman and establish a student loan Bill of Rights within the department to provide timely assistance to any student loan borrower, as well as (Ch. 399-H, Sec. 1):

• Administer and coordinate the commissioner's response to consumer complaints related to student loans;

• Make available information to assist student loan borrowers to understand their rights and responsibilities under the terms of the student loans; and

• Take any other actions necessary to assist the commissioner in enforcement.

• Requires that before engaging in the business of a student loan servicer, an individual shall obtain and maintain a license under this act, and register with, obtain and maintain a valid unique identifier issued by the nationwide multi-state licensing system and registry (Ch. 399-H, Sec. 2).

• Exempts any bank, out-of-state bank, credit union, federal credit union, out-of-state credit union, bank holding company, or any wholly-owned subsidiary of any such bank or credit union from the aforementioned requirement (Ch. 399-H, Sec. 3).

• Requires the Department of Education to complete a background investigation and criminal history records check on the student loan servicer applicant’s principals unless the student loan servicer is a publicly-traded corporation (Ch. 399-H, Sec.4).

• Specifies that each initial license and annual renewal application shall be accompanied by a nonrefundable fee of $1,000 (Ch. 399-H, Sec. 4).

Full Bill Text