NC S426

Requires student loan servicers operating in North Carolina to obtain a license from the Commissioner of Banks, with a $1,500 application fee, minimum net worth of $250,000, and surety bonds ranging from $150,000 to $500,000 based on servicing volume

Establishes borrower protections requiring servicers to respond to written inquiries within 10 days, properly apply overpayments and partial payments, transfer all borrower records within 45 days when servicing changes, and evaluate borrowers for income-based repayment programs before placing them in forbearance or default

Creates a Student Loan Ombudsman position within the Office of the Commissioner of Banks to receive and respond to borrower complaints, analyze complaint data, and submit annual reports to the General Assembly

Authorizes civil penalties up to $25,000 per violation, allows the Commissioner to order restitution and disgorgement, and permits borrowers to bring private civil actions for damages caused by servicer violations

Exempts banks, credit unions, savings institutions, state entities, and higher education institutions from licensing requirements; licensing provisions take effect June 1, 2026, and Ombudsman provisions take effect January 1, 2027