Fifth Edition of 50 State Guide on Student Loan Servicing Laws Now Available

An important resource for financial services compliance professionals has been updated. The Fifth Edition of the 50 State Guide on Student Loan Servicing Laws is a quick reference guide and resource for student loan industry participants regarding enacted state laws, and pending or previously introduced legislation.

For the first time, a supplement will accompany the guide, expanding the scope to cover legislation specifically aimed at regulating private student loan origination and servicing. At least five state laws expressly cover private lending activity, besides servicing. Multiple states require registration prior to lending and reporting thereafter, with at least one state creating a private right of action for failure to register. 

Since the last edition, multiple states, such as Oklahoma and Oregon enacted new servicing legislation. However, the real focus on student loans has shifted towards private student loans, and in particular, on origination activities. 

Many of the laws concerning origination activity also cover servicing topics specific to private loans, such as mandates related to cosigners (including cosigner release), requirements regarding disclosures on flexible payment arrangements, anti-discrimination provisions in offering payment plans, non-acceleration clauses, and default collections’ procedures and processes. 

The full guide features state-by-state summaries, which provide an overview of the major provisions of state laws, processes for licensure, loan servicers' duties, and each state's enforcement powers. 

Download your copy of the Student Loan Servicing Guide: 50 State Survey of Laws and Legislation, Fifth Edition (PDF)