H875 Student Borrowers' Bill of Rights Summary

• Establishes a Student Loan Ombudsman position in the Office of the Commissioner of Banks to receive complaints, provide borrower education, and monitor student loan servicing practices, with an education course required by January 1, 2021.

• Requires student loan servicers to obtain a license from the Commissioner of Banks, with application fees of $1,000 and $800, annual assessments ranging from $2,000 to $0.01 per thousand dollars of servicing volume, and license expiration on September 30 of odd-numbered years.

• Imposes duties on servicers including safeguarding borrower funds, maintaining accurate records, providing fee disclosures, honoring borrower benefits, responding to inquiries within 30 days, and notifying borrowers of delinquencies within 30 days.

• Prohibits servicers from defrauding borrowers, engaging in deceptive practices, misapplying payments, providing inaccurate credit reporting, or violating federal and state privacy laws, with penalties up to $25,000 per violation and borrower right to civil action for damages.

• Exempts banks, credit unions, federal loan servicers, and state agencies from licensing requirements; most licensing and enforcement provisions take effect October 1, 2021, while the Ombudsman position takes effect July 1, 2020.