AZ HB2302

Requires student loan servicers operating in Arizona to obtain a license from the deputy director, with a $1,000 license fee and $800 investigation fee, while exempting banks, credit unions, and their wholly owned subsidiaries.

Establishes a student loan ombudsman position to receive and resolve borrower complaints, analyze complaint data, help borrowers understand their rights, and create a borrower education course by October 1, 2026.

Prohibits student loan servicers from engaging in deceptive practices, misapplying payments, providing inaccurate credit bureau information, refusing to communicate with authorized representatives, or harassing borrowers.

Mandates servicers respond to written borrower inquiries within 30 days, transfer complete borrower information within 45 days when servicing rights change, and honor all originally represented borrower benefits after loan transfers.

Establishes civil penalties up to $100,000 per violation, allows enforcement through private action and Attorney General prosecution, and permits recovery of actual damages, punitive damages, and attorney fees for willful or negligent noncompliance.