Missouri HB 1429: Establishes the "Student Loan Bill of Rights."

Bill Text

SECOND REGULAR SESSION
HOUSE BILL NO. 1429
100TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE KENDRICK.
3550H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT
To amend chapter 173, RSMo, by adding thereto seven new sections relating to student loans.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 173, RSMo, is amended by adding thereto seven new sections, to be
2 known as sections 173.2300, 173.2301, 173.2302, 173.2304, 173.2306, 173.2308, and 173.2310,
3 to read as follows:
173.2300. 1. The provisions of sections 173.2300 to 173.2310 shall be known and
2 may be cited as the "Student Loan Bill of Rights".
3 2. As used in sections 173.2300 to 173.2310, the following terms mean:
4 (1) "Board", the coordinating board for higher education;
5 (2) "Department", the department of higher education and workforce
6 development;
7 (3) "Servicing":
8 (a) Receiving any scheduled periodic payments from a student loan borrower
9 pursuant to the terms of a student education loan;
10 (b) Applying the payments of principal and interest and such other payments, with
11 respect to the amounts received from a student loan borrower, as may be required under
12 the terms of a student education loan; and
13 (c) Performing other administrative services with respect to a student education
14 loan;
15 (4) "Student education loan", any loan primarily for personal use to finance
16 education or other school-related expenses;
17 (5) "Student loan borrower":
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended
to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

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18 (a) Any resident of this state who has received or agreed to pay a student education
19 loan; or
20 (b) Any person who shares responsibility with such resident for repaying the
21 student education loan;
22 (6) "Student loan servicer" or "loan servicer", any person, wherever located,
23 responsible for the servicing of any student education loan to any student loan borrower.
173.2301. 1. The board shall establish within the department the "Office of the
2 Student Loan Ombudsman". The office of the student loan ombudsman shall provide
3 timely assistance to any student loan borrower regarding any student education loan in this
4 state. All state agencies shall assist and cooperate with the office of the student loan
5 ombudsman in the performance of its duties under sections 173.2300 to 173.2310.
6 2. The office of the student loan ombudsman, in consultation with the board, shall:
7 (1) Receive, review, and attempt to resolve any complaints from student loan
8 borrowers, including attempts to resolve such complaints in collaboration with institutions
9 of higher education, student loan servicers, and any other participants in student loan
10 lending;
11 (2) Compile and analyze data on student loan borrower complaints as described
12 in subdivision (1) of this subsection;
13 (3) Assist student loan borrowers to understand their rights and responsibilities
14 under the terms of student education loans;
15 (4) Provide information to the public, state agencies, members of the general
16 assembly, and other persons regarding the problems and concerns of student loan
17 borrowers and make recommendations for resolving those problems and concerns;
18 (5) Analyze and monitor the development and implementation of federal and state
19 laws and policies relating to student loan borrowers and recommend any changes the office
20 of the student loan ombudsman deems necessary;
21 (6) Review the complete student education loan history of any student loan
22 borrower who has provided written consent for such review;
23 (7) Disseminate information concerning the availability of the office of the student
24 loan ombudsman to assist student loan borrowers and potential student loan borrowers,
25 as well as public institutions of higher education, student loan servicers, and any other
26 participant in student education loan lending, with any student loan servicing concerns;
27 and
28 (8) Take any other actions necessary to fulfill the duties of the office of the student
29 loan ombudsman as set forth in this section.

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173.2302. 1. On or before October 1, 2020, the office of the student loan
2 ombudsman, in consultation with the board, shall establish and maintain a student loan
3 borrower education course that shall include educational presentations and materials
4 regarding student education loans. Topics covered by the program shall include key loan
5 terms, documentation requirements, monthly payment obligations, income-based
6 repayment options, loan forgiveness, and disclosure requirements.
7 2. On or before January 1, 2021, and annually thereafter, the commissioner of
8 higher education shall submit a report to the joint committee on education. The report
9 shall address the following:
10 (1) The implementation of sections 173.2300 t