SB3571 Summary

• Adds student loan borrowers to the definition of "consumer" under the Debt Settlement Consumer Protection Act and expands the definition of "debt settlement provider" to include entities offering student loan debt relief services for a fee.

• Excludes institutions of higher education from the definition of "debt settlement provider" and excludes services provided by student loan servicers and federal education loan originators or guarantors.

• Requires student loan debt relief providers to include specific disclosure notices in all advertising stating the company is private, not affiliated with the Department of Education, and that borrowers can apply for 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 federal student loan options.

• Applies existing fee restrictions to student loan debt relief services, including a maximum $50 enrollment fee and settlement fees capped at 15% of savings, with no fees collected until a creditor enters into a settlement agreement.

• Takes effect immediately upon becoming law.