NC S196

Establishes a Student Borrowers' Bill of Rights in North Carolina requiring the Commissioner of Banks to license and regulate student loan servicers through the Nationwide Multistate Licensing System (NMLS).

Requires student loan servicers to maintain minimum net worth of $250,000 and post surety bonds ranging from $150,000 to $500,000 depending on servicing volume.

Mandates servicers respond to borrower inquiries within 10 days and provide detailed information within 30 days, with restrictions on reporting disputed payments to credit agencies for 60 days.

Prohibits servicers from engaging in fraud, deceptive practices, misapplying payments, or failing to evaluate borrowers for income-based repayment and loan forgiveness programs before placing them in forbearance or default.

Establishes position of Student Loan Ombudsman by January 1, 2025 to receive and respond to borrower complaints and create educational courses on student loan terms, repayment options, and forgiveness programs by July 1, 2025.