MI SB0905

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

Designates a department employee as student loan ombudsman with duties including receiving and resolving borrower complaints, compiling complaint data, and educating borrowers about their rights and responsibilities.

Requires the ombudsman to ensure all student loan borrowers have equal access to quality education, resources to pay for college, affordable repayment plans, and quality customer service.

Mandates the ombudsman establish a borrower education program within 180 days covering loan terms, documentation, payment obligations, income-based repayment options, and loan forgiveness.

Requires a joint report to the legislature within 1 year studying whether Michigan should return to providing state student loans and what authority the ombudsman should have to refinance or modify loans.