STUDENT LOAN BILL OF RIGHTS ACT

HB 224, the Student Loan Bill of Rights Act, establishes new consumer protections for student loan borrowers in New Mexico. It requires non-bank student loan servicers to obtain a license, prohibits unfair practices like sudden loan acceleration, and mandates clear rights for borrowers - including equal access to repayment options, disability discharge for permanent disability, and cosigner notice and release. The law creates enforcement tools, including a Student Loan Ombud and a private right to sue for violations, while exempting banks and credit unions from licensing. It directly affects New Mexico residents with private student loans, their cosigners, and the non-bank entities managing those loans.