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Student Borrower Protections Act of 2019
10/28/2022, 1:46 AM
Congressional Summary of HR 5294
Student Borrower Protections Act of 2019
This bill places requirements on lenders, servicers, or assignees of postsecondary education loans, establishes standards for reporting student loan information to consumer reporting agencies, and requires certification of certain educational lenders.
Specifically, the bill establishes rules for lenders, servicers, or assignees of postsecondary education loans, including requirements related to (1) the sale, transfer, or assignment of such loans; (2) interest rate and term changes for such loans; (3) payment information required to be included with each billing cycle; and (4) application and allocation of payments.
The Consumer Financial Protection Bureau (CFPB) must develop and issue model forms to allow borrowers to compare alternative repayment options, forbearance, and deferment options. The CFPB must also establish a student loan servicing interagency working group, which shall make recommendations for the regulations required under the bill.
Further, the CFPB must issue rules to establish standards for the furnishing of information related to student loans to a consumer reporting agency, and any furnisher of such information must comply with such rules.
A private educational lender must, in general, obtain a private loan certification from an institution of higher education before consummating any loan with a student attending such institution.
