MN HF21

Establishes a student loan ombudsperson position within the Department of Commerce to receive and resolve borrower complaints, compile complaint data, educate borrowers on rights and responsibilities, and provide biennial reports to legislature by January 15 of odd-numbered years.

Requires all student loan servicers to obtain a license from the Commissioner of Commerce, with application fees of $1,000 (license) and $800 (investigation), and renewal fees of $500 (license) and $400 (investigation); exempts financial institutions, government agencies, fiduciaries, and persons servicing three or fewer loans annually.

Prohibits student loan servicers from misleading borrowers, misrepresenting loan terms or fees, misapplying payments, providing inaccurate information to credit agencies, refusing to communicate with authorized borrower representatives, or violating federal, state, or local laws.

Grants the Commissioner power to deny, suspend, or revoke licenses and bar persons from student loan servicing based on violations of the chapter, fraudulent or deceptive practices, criminal convictions, financial irresponsibility, or failure to cooperate with investigations.

Licenses expire December 31 annually and are renewable January 1; servicers must notify the Commissioner within ten business days of any changes to application information.