HF 1243

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/06/2023 07:09pm

A bill for an act
relating to commerce; establishing a student loan advocate; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 58B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [58B.011] STUDENT LOAN ADVOCATE.
new text end

new text begin Subdivision 1. new text end

new text begin Designation of a student loan advocate. new text end

new text begin The commissioner of commerce
must designate a student loan advocate within the Department of Commerce to provide
timely assistance to borrowers and to effectuate this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The student loan advocate has the following duties:
new text end

new text begin (1) receive, review, and attempt to resolve complaints from borrowers, including but
not limited to attempts to resolve borrower complaints in collaboration with institutions of
higher education, student loan servicers, and any other participants in student loan lending;
new text end

new text begin (2) compile and analyze data on borrower complaints received under clause (1);
new text end

new text begin (3) help borrowers understand the rights and responsibilities under the terms of student
loans;
new text end

new text begin (4) provide information to the public, state agencies, legislators, and relevant stakeholders
regarding the problems and concerns of borrowers;
new text end

new text begin (5) make recommendations to resolve the problems of borrowers;
new text end

new text begin (6) analyze and monitor the development and implementation of federal, state, and local
laws, regulations, and policies relating to borrowers, and recommend any changes deemed
necessary;
new text end

new text begin (7) review the complete student loan history for any borrower who has provided written
consent to conduct the review;
new text end

new text begin (8) increase public awareness that the advocate is available to assist in resolving the
student loan servicing concerns of potential and actual borrowers, institutions of higher
education, student loan servicers, and any other participant in student loan lending; and
new text end

new text begin (9) take other actions as necessary to fulfill the duties of the advocate, as provided under
this section.
new text end

new text begin Subd. 3. new text end

new text begin Student loan education course. new text end

new text begin The advocate must establish and maintain a
borrower education course. The course must include educational presentations and materials
regarding important topics in student loans, including but not limited to:
new text end

new text begin (1) the meaning of important terminology used in student lending;
new text end

new text begin (2) documentation requirements;
new text end

new text begin (3) monthly payment obligations;
new text end

new text begin (4) income-based repayment options;
new text end

new text begin (5) the availability of state and federal loan forgiveness programs; and
new text end

new text begin (6) disclosure requirements.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin By January 15 of each odd-numbered year, the advocate must report
to the legislative committees with jurisdiction over commerce and higher education. The
report must describe the advocate's implementation of this section, the outcomes achieved
by the advocate during the previous two years, and recommendations to improve the
regulation of student loan servicers.
new text end