HF1424 Summary

• Establishes a student loan advocate position within the Attorney General's office to receive and resolve borrower complaints, compile complaint data, and report biennially to the legislature on student loan servicer regulation.

• Requires student loan servicers to obtain licenses from the Commissioner of Commerce, with exemptions for financial institutions, state agencies, the University of Minnesota, and persons servicing three or fewer loans annually.

• Mandates student loan servicers respond to borrower communications within 10 days, handle overpayments and partial payments according to borrower preferences, evaluate borrowers for income-driven repayment before forbearance or default, and complete loan transfers within 45 days.

• Prohibits student loan servicers from misleading borrowers, misrepresenting loan terms or fees, misapplying payments, providing inaccurate credit reporting information, refusing authorized borrower representatives, or misrepresenting loan forgiveness eligibility.

• Appropriates $249,000 to the Commissioner of Commerce and $328,000 to the Attorney General in fiscal year 2021 for administering the new chapter; effective July 1, 2020.