MI SB0907

Requires student loan servicers operating in Michigan to obtain a license from the Department of Insurance and Financial Services, with exemptions for depository institutions and their wholly-owned subsidiaries.

Establishes licensing fees of $1,000 (nonrefundable license fee) and $800 (nonrefundable investigation fee), with license renewal required every 24 months for $1,000.

Creates the Student Loan Servicer Regulatory Fund to receive licensing and investigation fees for administering and enforcing the act, and the Student Loan Ombudsman Fund with $50 from each licensing and investigation fee.

Prohibits student loan servicers from engaging in fraudulent, deceptive, or unfair practices, including misapplying payments, providing inaccurate credit information, and failing to comply with federal student loan servicing regulations.

Authorizes the director to investigate applicants and licensees, suspend or revoke licenses, impose fines up to $3,000 per violation, and require restitution for violations of the act.