SB19-002: Colorado Student Loan Servicers Act

• Establishes licensing and regulatory framework for student loan servicers operating in Colorado, effective January 31, 2020, with initial $115,273 appropriation to the Department of Law.

• Creates student loan ombudsperson position to receive complaints, compile data, assist borrowers in understanding rights and responsibilities, and provide educational resources on loan repayment options and loan forgiveness programs.

• Requires student loan servicers to respond to borrower inquiries within 10-30 business days, properly apply payments, honor benefits during loan transfers, and prohibits misapplication of payments, providing inaccurate credit reporting, and failing to evaluate borrowers for income-based repayment programs before default.

• Establishes licensing fees ($1,000+ initial and renewal fees), record retention requirements (2 years minimum), and gives the state administrator authority to investigate, suspend, revoke licenses, and assess civil penalties up to $1,500 per violation.

• Allows borrowers to pursue civil actions for violations with remedies including actual damages, treble damages (3x amounts collected), punitive damages, and attorney fees; classifies violations as deceptive trade practices.