HB 5583 Summary

• Establishes the "Student Loan Ombudsman Act" creating a new position within the Department of Insurance and Financial Services to assist student loan borrowers in Michigan.

• Designates an ombudsman employee to receive and resolve student loan borrower complaints in collaboration with higher education institutions, loan servicers, and other lending participants.

• Requires the ombudsman to compile complaint data, educate borrowers on their rights and loan terms, monitor related laws and policies, and disseminate information about ombudsman services statewide.

• Mandates the ombudsman establish a borrower education program within 180 days covering loan terms, documentation, repayment options, loan forgiveness, and disclosure requirements.

• Requires a joint study and report to the legislature within one year on whether Michigan should return to providing state student loans and what authority the ombudsman should have to refinance or modify loans; effective 90 days after enactment only if HB 5585 is also enacted.