SB 132 Summary

• Establishes the Student Loan Borrower Bill of Rights Act requiring student loan servicers to respond to borrower inquiries within 30 days, honor borrower directions on overpayment application, and evaluate borrowers for income-driven repayment programs before forbearance or default.

• Imposes comprehensive duties on servicers regarding cosigner obligations, including providing cosigner release information annually, processing cosigner release applications within 30 days, and limiting consecutive on-time payment requirements to 12 months maximum.

• Prohibits student loan servicers from engaging in unfair, deceptive, or abusive practices; misapplying payments; providing inaccurate credit bureau information; or refusing to communicate with authorized borrower representatives.

• Creates the Office of the Student Loan Ombudsperson within the Department of Justice to receive and investigate borrower complaints, refer violations to the Consumer Protection Unit, compile complaint data, and submit annual reports to legislative committees and the Governor.

• Requires student loan servicers to maintain records for 7 years and submit annual non-identifying data reports on loans serviced in Delaware, including default and delinquency rates; violations are treated as unlawful consumer practices with attorney's fees available.