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Primary Sponsor

Last Action

Ref To Com On Rules and Operations of the Senate2025-03-25

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill establishes a licensing and regulatory system for student loan servicers in North Carolina under the Commissioner of Banks, creates protections for student loan borrowers through a "Student Borrowers' Bill of Rights," and establishes a Student Loan Ombudsman position to assist borrowers and investigate complaints.

Arguments in Favor

• •Supporters argue this bill protects vulnerable borrowers from unfair servicing practices by requiring servicers to be licensed, maintain minimum financial standards, and follow strict conduct rules.
• •The bill creates accountability through the Ombudsman who can investigate complaints, require servicers to respond within 20 days, and allow borrowers to sue for damages.
• •Borrowers gain explicit rights regarding payment application, income-based repayment evaluation, and clear communication when loans are transferred between servicers.

Arguments Against

• •Opponents may argue the regulatory requirements increase compliance costs for servicers, which could be passed to borrowers through higher fees or reduced service availability.
• •The licensing and bonding requirements ($150,000-$500,000 depending on volume) could create barriers for smaller servicers.
• •Some may contend that federal regulation of student loans already provides sufficient oversight, and state-level regulation creates duplicative bureaucracy and complexity for national servicers operating across multiple states.