HB5320 Summary

• Adds student loan borrowers to the definition of "consumer" and student loan debt relief services to the definition of "debt settlement service" under the Debt Settlement Consumer Protection Act.

• Requires debt settlement providers offering student loan relief services to include specific disclosures in all advertising and marketing communications stating the company is private, not affiliated with the Department of Education, and that borrowers can access consolidation and repayment plans without paid assistance.

• Mandates providers give student loan borrowers written and oral notice before contract signing that clearly discloses the company's status and provides information about free alternatives available through the Department of Education.

• Applies the same fee restrictions to student loan debt relief as traditional debt settlement services, including a maximum one-time enrollment fee of $50 and a settlement fee not exceeding 15% of savings.

• Excludes institutions of higher education, federal education loan servicers, and other originators or guarantors of federal education loans from being classified as debt settlement providers.