WI SB1041

Creates an Office of the Student Loan Ombudsman within the Department of Financial Institutions to assist borrowers, receive and resolve complaints, and provide public 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

Mandates servicers respond to written borrower inquiries within 30 days, apply nonconforming payments according to borrower preferences, and evaluate borrowers for income-based repayment programs before placing them in forbearance or default

Prohibits servicers from defrauding borrowers, misapplying payments, providing inaccurate credit bureau information, or refusing to communicate with authorized borrower representatives

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