HB 6267 Summary

• Establishes the "Student Loan Borrowers Bill of Rights Act" prohibiting abusive and deceptive practices by student loan servicers and imposing duties regarding payment processing, account management, and borrower communication.

• Requires student loan servicers to post payments within 3 days, apply overpayments and partial payments per borrower instructions, limit late fees to 6% of past-due amounts, and maintain records for 3 years after loan payoff or transfer.

• Mandates specialized training for customer service personnel working with military borrowers, public service workers, older borrowers (65+), and borrowers with disabilities regarding available benefits and protections.

• Creates a student loan ombudsman position within the Department of Insurance and Financial Services to receive and resolve consumer complaints, compile data, and submit annual reports to the legislature on student loan servicing issues.

• Allows borrowers to sue for violations, including minimum damages of $500 per violation or $1,500 per violation if servicer interferes with loan forgiveness or discharge benefits, plus treble damages, restitution, and attorney fees.