CT
Connecticut Senate Bill SB00716

Connecticut 2021 Regular Session

Connecticut Senate Bill SB00716 Compare Versions

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4-Senate Bill No. 716
7+General Assembly Committee Bill No. 716
8+January Session, 2021
9+LCO No. 5521
510
6-Public Act No. 21-190
11+
12+Referred to Committee on HIGHER EDUCATION AND
13+EMPLOYMENT ADVANCEMENT
14+
15+
16+Introduced by:
17+(HED)
18+
719
820
921 AN ACT CONCERNING TH E FEDERAL STUDENT LO AN
1022 BORROWERS' BILL OF R IGHTS ACT OF 2019.
1123 Be it enacted by the Senate and House of Representatives in General
1224 Assembly convened:
1325
14-Section 1. Section 36a-846 of the general statutes is repealed and the
15-following is substituted in lieu thereof (Effective July 1, 2021):
16-As used in this section and sections 36a-847 to 36a-854, as amended
17-by this act, and sections 3 and 4 of this act:
18-(1) "Advertise" or "advertising" has the same meaning as provided in
19-section 36a-485;
20-(2) "Branch office" means a location other than the main office at
21-which a licensee or any person on behalf of a licensee acts as a student
22-loan servicer;
23-(3) "Consumer report" has the same meaning as provided in Section
24-603(d) of the Fair Credit Reporting Act, 15 USC, 1681a, as amended from
25-time to time;
26-[(3)] (4) "Control person" has the same meaning as provided in section
27-36a-485;
28-(5) "Cosigner" has the same meaning as provided in 15 USC 1650(a), Senate Bill No. 716
26+Section 1. Section 36a-846 of the general statutes is repealed and the 1
27+following is substituted in lieu thereof (Effective October 1, 2021): 2
28+As used in this section and sections 36a-847 to 36a-854, inclusive, and 3
29+sections 3 and 4 of this act: 4
30+(1) "Advertise" or "advertising" has the same meaning as provided in 5
31+section 36a-485; 6
32+(2) "Branch office" means a location other than the main office at 7
33+which a licensee or any person on behalf of a licensee acts as a student 8
34+loan servicer; 9
35+(3) "Consumer report" has the same meaning as provided in Section 10
36+603(d) of the Fair Credit Reporting Act, 15 USC, 1681a, as amended from 11
37+time to time; 12 Committee Bill No. 716
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30-Public Act No. 21-190 2 of 9
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32-as amended from time to time;
33-(6) "Federal student education loan" means any student education
34-loan (A) (i) made pursuant to the William D. Ford Federal Direct Loan
35-Program, 20 USC 1087a, et seq., as amended from time to time, or (ii)
36-purchased by the United States Department of Education pursuant to 20
37-USC 1087i-1(a), as amended from time to time, and (B) owned by the
38-United States Department of Education;
39-(7) "Federal student loan servicer" means any student loan servicer
40-responsible for the servicing of a federal student education loan to a
41-student loan borrower pursuant to a contract awarded to such person
42-by the United States Department of Education under 20 USC 1087f, as
43-amended from time to time;
44-[(4)] (8) "Main office" has the same meaning as provided in section
45-36a-485;
46-(9) "Private student education loan" means any student education
47-loan that is not a federal student education loan;
48-(10) "Private student education loan servicer" means any student loan
49-servicer responsible for the servicing of a private student education loan
50-to a student loan borrower;
51-[(5)] (11) "Student loan borrower" means any individual who resides
52-within this state who has agreed to repay a student education loan;
53-[(6)] (12) "Student loan servicer" means any person, wherever located,
54-responsible for the servicing of any student education loan to any
55-student loan borrower;
56-[(7)] (13) "Servicing" means (A) receiving any scheduled periodic
57-payments from a student loan borrower pursuant to the terms of a
58-student education loan; (B) applying the payments of principal and Senate Bill No. 716
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44+[(3)] (4) "Control person" has the same meaning as provided in section 13
45+36a-485; 14
46+(5) "Cosigner" has the same meaning as provided in 15 USC 1650(a), 15
47+as amended from time to time; 16
48+[(4)] (6) "Main office" has the same meaning as provided in section 17
49+36a-485; 18
50+(7) "Person" means a natural person, corporation, limited liability 19
51+company, trust, partnership, incorporated or unincor porated 20
52+association or any other legal entity; 21
53+(8) "Private education loan" has the same meaning as provided in 15 22
54+USC 1650(a), as amended from time to time; 23
55+[(5)] (9) "Student loan borrower" means any individual who resides 24
56+within this state who has agreed to repay a student education loan; 25
57+[(6)] (10) "Student loan servicer" means any person, wherever located, 26
58+responsible for the servicing of any student education loan to any 27
59+student loan borrower; 28
60+[(7)] (11) "Servicing" means (A) receiving any scheduled periodic 29
61+payments from a student loan borrower pursuant to the terms of a 30
62+student education loan [; (B)] and applying the payments of principal 31
63+and interest and such other payments with respect to the amounts 32
64+received from a student loan borrower, as may be required pursuant to 33
65+the terms of a student education loan; (B) maintaining account records 34
66+for and communicating with the student loan borrower concerning the 35
67+student education loan during the period when no scheduled periodic 36
68+payments are required; (C) interacting with a student loan borrower for 37
69+purposes of facilitating the servicing of a student education loan, 38
70+including, but not limited to, assisting a student loan borrower to 39
71+prevent such borrower from defaulting on obligations arising from the 40
72+student education loan; or [(C)] (D) performing other administrative 41
73+services with respect to a student education loan; 42 Committee Bill No. 716
6174
62-interest and such other payments with respect to the amounts received
63-from a student loan borrower, as may be required pursuant to the terms
64-of a student education loan; (C) maintaining account records for and
65-communicating with the student loan borrower concerning the student
66-education loan during the period when no scheduled periodic payments
67-are required; (D) interacting with a student loan borrower for purposes
68-of facilitating the servicing of a student education loan, including, but
69-not limited to, assisting a student loan borrower to prevent such
70-borrower from defaulting on obligations arising from the student
71-education loan; or [(C)] (E) performing other administrative services
72-with respect to a student education loan;
73-[(8)] (14) "Student education loan" means any loan primarily for
74-personal use to finance education or other school-related expenses;
75-[(9)] (15) "Unique identifier" has the same meaning as provided in
76-section 36a-485.
77-Sec. 2. Section 36a-850 of the general statutes is repealed and the
78-following is substituted in lieu thereof (Effective July 1, 2021):
79-No [person who is required to be licensed and who is subject to the
80-provisions of sections 36a-846 to 36a-854, inclusive,] student loan
81-servicer and no control person of a student loan servicer shall, directly
82-or indirectly:
83-(1) Employ any scheme, device or artifice to defraud or mislead
84-student loan borrowers;
85-(2) Engage in any unfair or deceptive practice toward any person or
86-misrepresent or omit any material information in connection with the
87-servicing of a student education loan, including, but not limited to,
88-misrepresenting the amount, nature or terms of any fee or payment due
89-or claimed to be due on a student education loan, the terms and
90-conditions of the loan agreement or the borrower's obligations under the Senate Bill No. 716
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94-loan;
95-(3) Obtain property by fraud or misrepresentation;
96-(4) Knowingly misapply or recklessly apply student education loan
97-payments to the outstanding balance of a student education loan;
98-(5) Knowingly or recklessly provide inaccurate information to a
99-credit bureau, thereby harming a student loan borrower's
100-creditworthiness;
101-(6) Fail to report both the favorable and unfavorable payment history
102-of the student loan borrower to a nationally recognized consumer credit
103-bureau at least annually if the student loan servicer [licensee] regularly
104-reports information to a credit bureau;
105-(7) Refuse to communicate with an authorized representative of the
106-student loan borrower who provides a written authorization signed by
107-the student loan borrower, provided the student loan servicer [licensee]
108-may adopt procedures reasonably related to verifying that the
109-representative is in fact authorized to act on behalf of the student loan
110-borrower;
111-(8) Negligently make any false statement or knowingly and wilfully
112-make any omission of a material fact in connection with any information
113-or reports filed with a governmental agency or in connection with any
114-investigation conducted by the commissioner or another governmental
115-agency;
116-(9) [Fail] Unless otherwise required pursuant to federal law, a federal
117-student loan agreement, or by a contract between a federal student loan
118-servicer and the United States Department of Education, fail to establish,
119-enforce and maintain policies and procedures for supervising
120-employees, agents and office operations that are reasonably designed to
121-achieve compliance with applicable student loan servicing laws and Senate Bill No. 716
80+[(8)] (12) "Student education loan" means any loan, including private 43
81+education loans, primarily for personal use to finance education or other 44
82+school-related expenses; 45
83+[(9)] (13) "Unique identifier" has the same meaning as provided in 46
84+section 36a-485. 47
85+Sec. 2. Section 36a-850 of the general statutes is repealed and the 48
86+following is substituted in lieu thereof (Effective October 1, 2021): 49
87+No person who is required to be licensed and who is subject to the 50
88+provisions of sections 36a-846 to 36a-854, inclusive, as amended by this 51
89+act, and no control person shall, directly or indirectly: 52
90+(1) Employ any scheme, device or artifice to defraud or mislead 53
91+student loan borrowers; 54
92+(2) Engage in any unfair or deceptive practice toward any person or 55
93+misrepresent or omit any material information in connection with the 56
94+servicing of a student education loan, including, but not limited to, 57
95+misrepresenting the amount, nature or terms of any fee or payment due 58
96+or claimed to be due on a student education loan, the terms and 59
97+conditions of the loan agreement or the borrower's obligations under the 60
98+loan; 61
99+(3) Obtain property by fraud or misrepresentation; 62
100+(4) Knowingly misapply or recklessly apply student education loan 63
101+payments to the outstanding balance of a student education loan; 64
102+(5) Knowingly or recklessly provide inaccurate information to a 65
103+credit bureau, thereby harming a student loan borrower's 66
104+creditworthiness; 67
105+(6) Fail to report both the favorable and unfavorable payment history 68
106+of the student loan borrower to a nationally recognized consumer credit 69
107+bureau at least annually if the student loan servicer licensee regularly 70 Committee Bill No. 716
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125-regulations [;] or fail to comply with the service standards set by the
126-commissioner in accordance with section 59 of public act 16-65; or
127- [(10) Fail to comply with the service standards set by the
128-commissioner in accordance with section 59 of public act 16-65.]
129-(10) Engage in an abusive act or practice, as described in Section 1031
130-of the Dodd-Frank Wall Street Reform and Consumer Protection Act,
131-P.L. 111-203, as amended from time to time, when servicing a student
132-education loan.
133-Sec. 3. (NEW) (Effective July 1, 2021) In servicing a private student
134-education loan, a private student education loan servicer shall:
135-(1) Prior to sending the first billing statement on a private student
136-education loan or immediately upon receipt of a private student
137-education loan following the transfer or assignment of such private
138-student education loan, provide to the student loan borrower, and to
139-any cosigner of such private student education loan, information
140-concerning the rights and responsibilities of such student loan borrower
141-and cosigner, including information regarding (A) how such private
142-student education loan obligation will appear on the cosigner's
143-consumer report, (B) how the cosigner will be notified if the private
144-student education loan becomes delinquent, including how the cosigner
145-can cure the delinquency in order to avoid negative credit furnishing
146-and loss of cosigner release eligibility, and (C) eligibility for release of
147-the cosigner's obligation on such private student education loan,
148-including number of on-time payments and any other criteria required
149-to approve the release of the cosigner from the loan obligation;
150-(2) Send annual written notice to all student loan borrowers and
151-cosigners relating to information about cosigner release, including the
152-criteria the private student education loan servicer requires to approve
153-the release of a cosigner from a private student education loan Senate Bill No. 716
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114+reports information to a credit bureau; 71
115+(7) Refuse to communicate with an authorized representative of the 72
116+student loan borrower who provides a written authorization signed by 73
117+the student loan borrower, provided the student loan servicer licensee 74
118+may adopt procedures reasonably related to verifying that the 75
119+representative is in fact authorized to act on behalf of the student loan 76
120+borrower; 77
121+(8) Negligently make any false statement or knowingly and wilfully 78
122+make any omission of a material fact in connection with any information 79
123+or reports filed with a governmental agency or in connection with any 80
124+investigation conducted by the commissioner or another governmental 81
125+agency; 82
126+(9) Fail to establish, enforce and maintain policies and procedures for 83
127+supervising employees, agents and office operations that are reasonably 84
128+designed to achieve compliance with applicable student loan servicing 85
129+laws and regulations; [or] 86
130+(10) Fail to comply with the service standards set by the 87
131+commissioner in accordance with section 59 of public act 16-65; or 88
132+(11) Engage in an abusive act or practice, as described in Section 1031 89
133+of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 90
134+P.L. 111-203, as amended from time to time, when servicing a student 91
135+education loan. 92
136+Sec. 3. (NEW) (Effective October 1, 2021) In servicing a private 93
137+education loan, a student loan servicer shall: 94
138+(1) Prior to sending the first billing statement on a private education 95
139+loan or immediately upon receipt of a private education loan following 96
140+the transfer or assignment of such private education loan, provide to the 97
141+student loan borrower, and to any cosigner of such private education 98
142+loan, information concerning the rights and responsibilities of such 99
143+student loan borrower and cosigner, including information regarding 100 Committee Bill No. 716
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157-obligation and the process for applying for cosigner release;
158-(3) Upon satisfaction by the student loan borrower of the applicable
159-consecutive on-time payment requirement for purposes of cosigner
160-release eligibility, send, in writing, to such student loan borrower and
161-cosigner (A) a notification that such consecutive on-time payment
162-requirement has been satisfied and that such cosigner may be eligible
163-for cosigner release, and (B) information relating to the procedure for
164-applying for cosigner release and any additional criteria that a cosigner
165-must satisfy in order to be eligible for cosigner release. Such notification
166-and information shall be sent by either United States mail or electronic
167-mail, provided such student loan borrower has elected to receive
168-electronic communications from the private student education loan
169-servicer;
170-(4) In the event that an application for a cosigner release is
171-incomplete, provide, in writing, (A) notice to the student loan borrower
172-and cosigner that such application is incomplete, and (B) a description
173-of the information that is missing or the additional information that is
174-needed to consider the application complete and the date by which the
175-borrower or cosigner are required to provide such information;
176-(5) Not later than thirty days following the submission of an
177-application for cosigner release, send to the student loan borrower and
178-cosigner a written notice of the decision that such application has been
179-approved or denied. If the application for cosigner release has been
180-denied, such written notice shall inform such student loan borrower and
181-cosigner that such student loan borrower and cosigner have the right to
182-request all documents and information used by the private student
183-education loan servicer in its decision to deny such application,
184-including the credit score threshold used by the private student
185-education loan servicer, the consumer report of such student loan
186-borrower or cosigner, the credit score of such student loan borrower or
187-cosigner, and any other documents that are relevant or specific to such Senate Bill No. 716
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191-student loan borrower or cosigner. The private student education loan
192-servicer shall provide such student loan borrower and cosigner with any
193-adverse action notices required under federal law if the denial of such
194-application was based in whole or in part on any information contained
195-in a consumer report;
196-(6) Include the information described in subdivision (2) of this section
197-in any response to an application for cosigner release;
198-(7) Refrain from imposing any restrictions on a student loan borrower
199-or cosigner that may permanently prevent such student loan borrower
200-or cosigner from qualifying for a cosigner release, including, but not
201-limited to, restrictions on the number of times a student loan borrower
202-or cosigner may apply for cosigner release;
203-(8) Refrain from imposing any negative consequences on a student
204-loan borrower or cosigner during the sixty days following issuance of
205-the notice described in subdivision (4) of this section, or until a final
206-decision concerning a student loan borrower or cosigner's application
207-for cosigner release is made. For purposes of this subdivision, "negative
208-consequences" includes, but is not limited to, the imposition of
209-additional eligibility criteria, negative credit reporting, lost eligibility for
210-a cosigner release, late fees, interest capitalization or other financial
211-penalties or injury;
212-(9) Refrain from requiring a student loan borrower to make more than
213-twelve consecutive on-time payments as part of the eligibility criteria
214-for cosigner release. Such private student education loan servicer shall
215-consider any student loan borrower who has paid the equivalent of
216-twelve months of principal and interest during any twelve-month
217-period to have satisfied the consecutive on-time payment requirement,
218-even if such student loan borrower has not made payments monthly
219-during such twelve-month period; Senate Bill No. 716
150+(A) how such private education loan obligation will appear on the 101
151+cosigner's consumer report, (B) how the cosigner will be notified if the 102
152+private education loan becomes delinquent, including how the cosigner 103
153+can cure the delinquency in order to avoid negative credit furnishing 104
154+and loss of cosigner release eligibility, and (C) eligibility for release of 105
155+the cosigner's obligation on such private education loan, including 106
156+number of on-time payments and any other criteria required to approve 107
157+the release of the cosigner from the loan obligation; 108
158+(2) Send annual written notice to all student loan borrowers and 109
159+cosigners relating to information about cosigner release, including the 110
160+criteria the student loan servicer requires to approve the release of a 111
161+cosigner from a private education loan obligation and the process for 112
162+applying for cosigner release; 113
163+(3) Upon satisfaction by the student loan borrower of the applicable 114
164+consecutive on-time payment requirement for purposes of cosigner 115
165+release eligibility, send, in writing, to such student loan borrower and 116
166+cosigner (A) a notification that such consecutive on-time payment 117
167+requirement has been satisfied and that such cosigner may be eligible 118
168+for cosigner release, and (B) information relating to the procedure for 119
169+applying for cosigner release and any additional criteria that a cosigner 120
170+must satisfy in order to be eligible for cosigner release. Such notification 121
171+and information shall be sent by either United States mail or electronic 122
172+mail, provided such student loan borrower has elected to receive 123
173+electronic communications from the student loan servicer; 124
174+(4) In the event that an application for a cosigner release is 125
175+incomplete, provide, in writing, (A) notice to the student loan borrower 126
176+and cosigner that such application is incomplete, and (B) a description 127
177+of the information that is missing or the additional information that is 128
178+needed to consider the application complete and the date by which the 129
179+borrower or cosigner are required to provide such information; 130
180+(5) Not later than thirty days following the submission of an 131
181+application for cosigner release, send to the student loan borrower and 132 Committee Bill No. 716
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223-(10) Upon receipt of a request by a student loan borrower or cosigner
224-to a change that results in restarting the count of consecutive on-time
225-payments required for cosigner release eligibility, provide to such
226-student loan borrower and cosigner written notification of the impact of
227-such change on cosigner release eligibility and an opportunity to
228-withdraw or reverse such change for purposes of avoiding such impact;
229-(11) Provide a student loan borrower or cosigner (A) the right to
230-request an appeal of a determination to deny a cosigner release
231-application, (B) an opportunity to submit additional information or
232-documentation evidencing that such student loan borrower has the
233-ability, willingness and stability to make his or her payment obligations,
234-and (C) the right to request that a different employee of the private
235-student education loan servicer review and make a determination on the
236-application for a cosigner release;
237-(12) Establish and maintain a comprehensive record management
238-system reasonably designed to ensure the accuracy, integrity and
239-completeness of data and other information about cosigner release
240-applications. Such system shall include the number of cosigner release
241-applications received, the approval and denial rate of such applications
242-and the primary reasons for denial of such applications;
243-(13) In the event that a cosigner has a total and permanent disability,
244-as determined by any federal or state agency or doctor of medicine or
245-osteopathy legally authorized to practice in the state, and unless
246-otherwise expressly prohibited under the terms of a private student
247-education loan agreement, (A) release the cosigner from his or her
248-obligation to repay the private student education loan upon receipt of
249-notification that such cosigner has a total and permanent disability, and
250-(B) refrain from requiring that a new cosigner be added to such private
251-student education loan after the original cosigner has been released
252-from such private student education loan; Senate Bill No. 716
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188+cosigner a written notice of the decision that such application has been 133
189+approved or denied. If the application for cosigner release has been 134
190+denied, such written notice shall inform such student loan borrower and 135
191+cosigner that such student loan borrower and cosigner have the right to 136
192+request all documents and information used by the student loan servicer 137
193+in its decision to deny such application, including the credit score 138
194+threshold used by the student loan servicer, the consumer report of such 139
195+student loan borrower or cosigner, the credit score of such student loan 140
196+borrower or cosigner, and any other documents that are relevant or 141
197+specific to such student loan borrower or cosigner. The student loan 142
198+servicer shall provide such student loan borrower and cosigner with any 143
199+adverse action notices required under federal law if the denial of such 144
200+application was based in whole or in part on any information contained 145
201+in a consumer report; 146
202+(6) Include the information described in subdivision (2) of this section 147
203+in any response to an application for cosigner release; 148
204+(7) Refrain from imposing any restrictions on a student loan borrower 149
205+or cosigner that may permanently prevent such student loan borrower 150
206+or cosigner from qualifying for a cosigner release, including, but not 151
207+limited to, restrictions on the number of times a student loan borrower 152
208+or cosigner may apply for cosigner release; 153
209+(8) Refrain from imposing any negative consequences on a student 154
210+loan borrower or cosigner during the sixty days following issuance of 155
211+the notice described in subdivision (4) of this section, or until a final 156
212+decision concerning a student loan borrower or cosigner's application 157
213+for cosigner release is made. For purposes of this subdivision, "negative 158
214+consequences" includes, but is not limited to, the imposition of 159
215+additional eligibility criteria, negative credit reporting, lost eligibility for 160
216+a cosigner release, late fees, interest capitalization or other financial 161
217+penalties or injury; 162
218+(9) Refrain from requiring a student loan borrower to make more than 163
219+twelve consecutive on-time payments as part of the eligibility criteria 164 Committee Bill No. 716
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256-(14) Provide the cosigner of a private student education loan with
257-access to the same documents and records associated with the private
258-student education loan that are available to the student loan borrower
259-of such private student education loan; and
260-(15) If a student loan borrower has electronic access to documents and
261-records associated with a private student education loan, provide
262-equivalent electronic access to such documents and records to the
263-cosigner of such private student education loan.
264-Sec. 4. (NEW) (Effective July 1, 2021) The provisions of section 3 of this
265-act shall not apply to the following persons: (1) Any bank, out-of-state
266-bank that has a physical presence in the state, Connecticut credit union,
267-federal credit union or out-of-state credit union; (2) any wholly owned
268-subsidiary of any such bank or credit union; (3) any operating
269-subsidiary where each owner of such operating subsidiary is wholly
270-owned by the same bank or credit union; and (4) the Connecticut Higher
271-Education Supplemental Loan Authority.
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226+for cosigner release. Such student loan servicer shall consider any 165
227+student loan borrower who has paid the equivalent of twelve-months of 166
228+principal and interest during any twelve-month period to have satisfied 167
229+the consecutive on-time payment requirement, even if such student loan 168
230+borrower has not made payments monthly during such twelve-month 169
231+period; 170
232+(10) Upon receipt of a request by a student loan borrower or cosigner 171
233+to a change that results in restarting the count of consecutive on-time 172
234+payments required for cosigner release eligibility, provide to such 173
235+student loan borrower and cosigner written notification of the impact of 174
236+such change on cosigner release eligibility and an opportunity to 175
237+withdraw or reverse such change for purposes of avoiding such impact; 176
238+(11) Provide a student loan borrower or cosigner (A) the right to 177
239+request an appeal of a determination to deny a cosigner release 178
240+application, (B) an opportunity to submit additional information or 179
241+documentation evidencing that such student loan borrower has the 180
242+ability, willingness and stability to make his or her payment obligations, 181
243+and (C) the right to request that a different employee of the student loan 182
244+servicer review and make a determination on the application for a 183
245+cosigner release; 184
246+(12) Establish and maintain a comprehensive record management 185
247+system reasonably designed to ensure the accuracy, integrity and 186
248+completeness of data and other information about cosigner release 187
249+applications. Such system shall include the number of cosigner release 188
250+applications received, the approval and denial rate of such applications 189
251+and the primary reasons for denial of such applications; 190
252+(13) In the event that a cosigner has a total and permanent disability, 191
253+as determined by any federal or state agency or doctor of medicine or 192
254+osteopathy legally authorized to practice in the state, and unless 193
255+otherwise expressly prohibited under the terms of a private education 194
256+loan agreement, (A) release the cosigner from his or her obligation to 195
257+repay the private education loan upon receipt of notification that such 196 Committee Bill No. 716
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264+cosigner has a total and permanent disability, and (B) refrain from 197
265+requiring that a new cosigner be added to such private education loan 198
266+after the original cosigner has been released from such private education 199
267+loan; 200
268+(14) Provide the cosigner of a private education loan with access to 201
269+the same documents and records associated with the private education 202
270+loan that are available to the student loan borrower of such private 203
271+education loan; and 204
272+(15) If a student loan borrower has electronic access to documents and 205
273+records associated with a private education loan, provide equivalent 206
274+electronic access to such documents and records to the cosigner of such 207
275+private education loan. 208
276+Sec. 4. (NEW) (Effective October 1, 2020) (a) Any student loan 209
277+borrower, class of student loan borrowers or the legal representative of 210
278+such borrower or borrowers aggrieved by a violation of sections 36a-846 211
279+to 36a-854, inclusive, of the general statutes, as amended by this act, or 212
280+section 3 of this act, by a student loan servicer, may bring an action in 213
281+the Superior Court. Upon finding that a student loan servicer has 214
282+committed a violation of said sections, the court may award a prevailing 215
283+party actual damages, reasonable attorneys' fees and court costs, and 216
284+may, in its discretion, award punitive damages and restitution of 217
285+property and may provide such equitable relief as it deems necessary. 218
286+(b) In addition to the judicial relief permitted under subsection (a) of 219
287+this section, in any civil action brought under this section in which the 220
288+student loan borrower prevails, the court shall award treble damages 221
289+upon a finding that the student loan servicer has engaged in conduct 222
290+that substantially interferes with (1) such student loan borrower's right 223
291+to an alternative payment arrangement, loan forgiveness, cancellation 224
292+or discharge of the student education loan, or (2) any other financial 225
293+benefit (A) established under the terms of such student loan borrower's 226
294+promissory note, or (B) pursuant to the Higher Education Act of 1965, 227
295+as amended from time to time, or the regulations adopted thereunder. 228 Committee Bill No. 716
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302+(c) Any student loan borrower, or the legal representative of such 229
303+borrower, entitled to bring an action under subsection (a) of this section 230
304+may, pursuant to rules established by the Superior Court, bring a class 231
305+action on behalf of themselves and other similarly situated student loan 232
306+borrowers to recover damages. 233
307+(d) The remedies provided under this section are in addition to any 234
308+other remedies provided by state or federal law, and a student loan 235
309+borrower shall not be required to exhaust any administrative remedies 236
310+established pursuant to sections 36a-846 to 36a-854, inclusive, of the 237
311+general statutes, as amended by this act, and section 3 of this act, prior 238
312+to bringing an action under this section. 239
313+This act shall take effect as follows and shall amend the following
314+sections:
315+
316+Section 1 October 1, 2021 36a-846
317+Sec. 2 October 1, 2021 36a-850
318+Sec. 3 October 1, 2021 New section
319+Sec. 4 October 1, 2020 New section
320+
321+HED Joint Favorable
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