The bill 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 bill 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 bill also creates a student loan ombudsperson to provide timely assistance to student loan borrowers.
The bill appropriates $115,273 to the department of law from the general fund to implement the act.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)