HB2746 Summary

• Private educational lenders must obtain institutional certification from colleges before disbursing private education loans, including verification of borrower enrollment status, cost of attendance, and remaining financial need.

• Lenders may disburse funds without certification if the institution fails to respond within 15 business days or refuses certification, but must report such disbursements to the Student Loan Ombudsman.

• Private educational lenders must submit annual reports to the Department of Financial and Professional Regulation and Student Loan Ombudsman containing loan volume data, default rates, and copies of promissory notes and agreements used.

• Institutions of higher education must inform borrowers of available federal student loan options, the ability to choose their own lender, impacts on financial aid eligibility, and their right to accept or reject private loans within 30 days of approval with a 3-day cancellation period.

• Institutions must send loan statements to borrowers at least quarterly during enrollment, with detailed disclosures about loan terms, interest rates, payment obligations, and for income share agreements, annual percentage rates at various income levels.