NC S194

Requires student loan servicers to obtain a license from the North Carolina Commissioner of Banks, with exemptions for banks, credit unions, state entities, and higher education institutions.

Establishes minimum net worth requirement of $250,000 and surety bond requirements ($150,000 to $500,000 depending on servicing volume) for licensed student loan servicers.

Mandates student loan servicers to respond to borrower inquiries within 10 days and provide information within 30 days, prohibits misapplication of payments, and requires proper evaluation for income-based repayment programs before forbearance or default.

Creates the position of Student Loan Ombudsman designated by the Commissioner of Banks to receive borrower complaints, compile complaint data, and establish an education course on student loan terms and repayment options by July 1, 2025.

Authorizes the Commissioner to investigate servicers, assess civil penalties up to $25,000 per violation, order restitution and disgorgement, and allows borrowers to bring civil actions for damages resulting from servicer violations.