Raised Bill No. 1019: Student Loan Servicers

• Repeals and replaces Section 36a-846 of Connecticut General Statutes effective October 1, 2023, establishing comprehensive definitions for student loan servicer regulation including terms for federal student education loans, private student education loans, student loan borrowers, and servicing activities.

• Defines "federal student education loan" as loans made under the William D. Ford Federal Direct Loan Program or purchased by the U.S. Department of Education and owned by that department.

• Defines "student loan servicer" to include any person responsible for servicing student education loans, encompassing receiving payments, maintaining account records, communicating with borrowers, and facilitating default prevention.

• Amends Section 36a-847a(d) to require registrants to notify the commissioner within seven days of any expiration, revocation, or termination of contracts with the U.S. Department of Education for student loan servicing, with registrations deemed expired upon the effective date of such contract termination.

• Clarifies that subservicers of federal student loan servicers must be registered in Connecticut as federal student loan servicers.