Regulate Student Education Loan Servicers

Student loan servicers - license requirement - regulation by assistant attorney general - appropriation. The act requires an entity that services a student education loan owned by a Colorado resident to be licensed by the administrator of the "Uniform Consumer Credit Code". "Servicing" means receiving a scheduled periodic payment from a student loan borrower, applying the payments of principal and interest with respect to the amounts received from a student loan borrower, and similar administrative services. The act specifies particular acts that are required of or prohibited by student loan servicers and the administrator's powers and duties. Violation of the licensing law is a deceptive trade practice. The act also creates a student loan ombudsperson to provide timely assistance to student loan borrowers. $115,273 is appropriated to the department of law from the general fund to implement the act. (Note: This summary applies to this bill as enacted.) Read More