CT SB00716

Expands student loan servicer regulations effective July 1, 2021, to apply to all student loan servicers including those not previously subject to licensing requirements, and adds control persons of servicers to accountability provisions.

Prohibits student loan servicers from employing fraud, deceptive practices, misapplying payments, providing inaccurate credit information, and requires compliance with service standards and prohibitions against abusive acts under the Dodd-Frank Act.

Establishes comprehensive requirements for private student loan servicers regarding cosigner release, including initial disclosure of rights, annual notices, 30-day decision timelines, and maximum 12-month consecutive on-time payment requirements.

Requires private student loan servicers to provide cosigners with access to loan documents and records equivalent to borrowers, appeal rights for denied applications, and automatic release upon cosigner's total and permanent disability.

Exempts banks, credit unions, their subsidiaries, and the Connecticut Higher Education Supplemental Loan Authority from the new private loan servicer requirements.