WI AB1074

Creates an Office of the Student Loan Ombudsman within the Department of Financial Institutions to assist borrowers, receive and resolve complaints, and provide information about student loan issues

Requires student loan servicers to obtain a license ($1,000 fee plus $800 investigation fee) before servicing student education loans in Wisconsin, with licenses expiring every two years on September 30 of odd-numbered years

Prohibits servicers from defrauding borrowers, misapplying payments, providing inaccurate credit bureau information, refusing to communicate with authorized representatives, or placing borrowers in default without first evaluating them for income-based repayment programs

Requires servicers to respond to written borrower inquiries within 30 days, follow borrower preferences for applying nonconforming payments, and transfer all borrower information within 45 days when servicing is sold or assigned

Appropriates $214,000 in each of fiscal years 2025-26 and 2026-27 to fund 2.0 FTE positions for the new ombudsman office, with full implementation required by July 1, 2027