SB21-057 Summary

• Creates comprehensive regulation of private education lenders in Colorado, requiring registration with the state administrator beginning September 1, 2021, and establishing registration fees and annual reporting requirements on loan volume, default rates, and promissory notes.

• Mandates cosigner disclosures and protections, including annual notices about cosigner release eligibility, limiting release requirements to 12 consecutive on-time payments, and prohibiting negative consequences during the application review period.

• Requires lenders to release cosigners immediately upon notification of the borrower's total and permanent disability and prohibits requiring a replacement cosigner or declaring default based solely on cosigner release.

• Establishes collection requirements for defaulted private education loans, including mandatory documentation of loan ownership, payment history, and original terms; imposes a six-year statute of limitations for collection actions.

• Provides private education loan borrowers with private right of action for lender violations, including damages up to treble damages or $1,500 minimum, plus attorney fees, and establishes deceptive trade practice liability.