NY A02275

Creates a student loan ombudsman position within the Department of Financial Services to receive, review, and resolve complaints from student loan borrowers, compile complaint data, and provide educational resources on borrower rights and responsibilities.

Requires all student loan servicers to obtain a license from the Department of Financial Services unless exempt (banks, credit unions, and their subsidiaries), with licenses valid for one year and renewable upon filing application and fees.

Prohibits student loan servicers from engaging in deceptive practices, misapplying payments, providing inaccurate credit reporting information, and falsifying records; requires servicers to report both favorable and unfavorable payment history to credit bureaus annually.

Mandates student loan servicers maintain transaction records for at least two years after final payment and comply with all applicable federal laws and regulations; grants the commissioner authority to investigate, examine, and suspend or revoke licenses for violations.

Requires the commissioner to file annual reports beginning January 1, 2026, on the ombudsman's work including complaint statistics, complaint types, and recommendations for improving oversight and enforcement of student loan servicers; takes effect 120 days after enactment.