Student loan ombudsperson - report - fund - rules - repeal.

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(1) The administrator shall designate, support, and maintain a student loan ombudsperson to provide timely assistance to student loan borrowers. The student loan ombudsperson, in consultation with the administrator, shall:

  1. Complaints. Receive, review, and attempt to resolve complaints from student loan borrowers, including in collaboration with institutions of higher education, student loan servicers, and any other participants in student loan lending, including originators servicing their own student education loans;

  2. Data. Compile and analyze data on student loan borrower complaints as described in subsection (1)(a) of this section;

  3. Assistance. Assist student loan borrowers in understanding their rights and responsibilities under the terms of student education loans;

  4. Information. Provide information to the public, agencies, legislators, and others regarding the problems and concerns of student loan borrowers and make recommendations for resolving those problems and concerns;

  5. Laws, rules, and policies. Analyze and monitor the development and implementation of federal, state, and local laws, ordinances, regulations, rules, and policies relating to student loan borrowers and recommend any necessary changes;

  6. Student loan history. Review the complete student education loan history for a student loan borrower who provides written consent for the review;

  7. Availability. Disseminate information concerning the availability of the student loan ombudsperson to assist student loan borrowers and potential student loan borrowers, including disseminating the information to institutions of higher education, student loan servicers, and any other participants in student education loan lending with any servicing concerns;

  8. Education course. Establish and maintain a student loan borrower education course within existing resources that includes educational presentations and materials regarding student education loans. The course must include at least key loan terms, documentation requirements, monthly payment obligations, income-based repayment options, loan forgiveness, and disclosure requirements.

  9. Other actions. Take any other actions necessary to fulfill the duties of the student loan ombudsperson as set forth in this section.

(2) (a) Annual report. The administrator shall submit a report by January 1 of each year to the committees of reference of the general assembly having jurisdiction over education, insurance, and financial services matters. The report must include:

  1. Implementation. A description of actions taken with respect to the implementation of this section;

  2. Effectiveness. An assessment of the overall effectiveness of the student loan ombudsperson; and

  3. Additional steps. Recommendations regarding additional steps for the administrator to gain regulatory control over licensing and enforcement with respect to student loan servicers.

(b) This subsection (2) is repealed, effective September 1, 2023.

(3) Student loan ombudsperson and student loan servicer licensing fund. (a) The student loan ombudsperson and student loan servicer licensing fund, referred to in this section as the "fund", is hereby created in the state treasury. The fund consists of licensing and investigation fees collected pursuant to section 5-20-107, civil penalties collected pursuant to sections 5-20-114 and 5-20-117, any other money required by law to be deposited in the fund, and any other money that the general assembly may appropriate or transfer to the fund.

  1. The state treasurer shall credit all interest and income derived from the deposit andinvestment of money in the fund to the fund.

  2. All money held in the fund is continuously appropriated to the department of law.The administrator shall expend money held in the fund to administer this article 20.

Source: L. 2019: Entire article added, (SB 19-002), ch. 157, p. 1859, § 2, effective August 2.


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