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AN ACT
_____________
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
______________________
To amend the Department of Insurance and Securities Regulation Establishment Act of 1996 to
prevent abusive acts or practices related to student education loans and private education
loans, require the creation of a revised Student Loan Borrower Bill of Rights by January
1, 2025, clarify that student loan servicers under contract with the United States
Department of Education shall be automatically issued a limited student loan servicing
license upon meeting certain criteria, clarify the rights and obligations regarding denials
of applications for approval, prescribe prohibited conduct on the part of student loan
servicers and private education lenders, assign duties to student loan servicers and private
education lenders, establish responsibilities of private education lenders regarding
disability discharge and cosigner release, authorize the Attorney General to bring an
action for a violation of certain provisions, and make a conforming amendment.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “New Student Loan Borrower Bill of Rights Amendment Act of 2024”.
Sec. 2. The Department of Insurance and Securities Regulation Establishment Act of
1996, effective May 21, 1997 (D.C. Law 11-268; D.C. Official Code § 31-101 et seq.), is
amended as follows:
(a) Section 2 (D.C. Official Code § 31-101) is amended as follows:
(1) Paragraph (1) is redesignated as paragraph (1A).
(2) A new paragraph (1) is added to read as follows:
“(1) “Abusive act or practice” means an act or practice that:
“(A) Materially interferes with the ability of a student loan borrower to
understand a term or condition of a student education loan or private education loan;
“(B) Takes unreasonable advantage of:
“(i) A lack of understanding on the part of a student loan borrower
of the material risks, costs, or conditions of a student education loan or private education loan;
“(ii) The inability of a student loan borrower to protect the interests
of the student loan borrower when selecting or using:
“(I) A student education loan or private education loan; or ENROLLED ORIGINAL
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“(II) A feature, term, or condition of a student education
loan or private education loan; or
“(iii) The reasonable reliance by the student loan borrower on a
person engaged in servicing a student education loan or private education loan to act in the
interests of the borrower; or
“(C) Misrepresents the amount, nature, or terms of any fee or payment due
or claimed to be due on a student education loan or private education loan, the terms and
conditions of the student education loan agreement or private education loan agreement or the
student loan borrower's obligations under the student education loan or private education loan.”.
(2) A new paragraph (2A) is added to read as follows:
“(2A)(A) “Cosigner” means an individual who is liable for the obligation of a
student loan borrower without compensation, regardless of how the individual is designated in
the contract or instrument with respect to that obligation, including an obligation under a private
education loan extended to consolidate a student loan borrower’s pre-existing student loans.
“(B) The term includes an individual whose signature is requested as a
condition to grant credit or to forbear on collection, but does not include a spouse of a student
loan borrower, the signature of whom is needed to perfect the security interest in a loan.”.
(3) New paragraphs (6C), (6D), (6E), (6F), and (6G) are added to read as follows:
“(6C) “Overpayment” means a payment on a student education loan or private
education loan in excess of the monthly amount due from the student loan borrower on a student
education loan or private education loan.
“(6D) “Partial payment” means a payment on a student education loan account
that contains multiple individual loans in an amount less than the amount necessary to satisfy the
outstanding payment due on all loans in the student education loan account.
“(6E)(A) “Postsecondary education expense” means an expense related to
enrollment in or attendance at a postsecondary education institution regardless of whether the
debt incurred by a student to pay those expenses is owed to the provider of postsecondary
education whose school, program, or facility the student attends.
(B) For the purpose of this paragraph, the term “postsecondary”
has the same meaning as that term is defined in section 201(12B) of the Education Licensure
Commission Act of 1976, effective April 6, 1977 (D.C. Law 1-104; D.C. Official Code § 38-
1302(12B)).
“(6F) “Private education lender” means a person engaged in the business of
securing, making, or extending private education loans, or a holder of a private education loan.
The term does not include, to the extent preempted by federal law:
“(A) A bank or credit union;
“(B) A wholly owned subsidiary of a bank or credit union; or
“(C) An operating subsidiary of a bank or credit union where each owner
of the operating subsidiary is wholly owned by the same bank or credit union. ENROLLED ORIGINAL
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“(6G)(A) “Private education loan” means an extension of credit that is not made,
insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. § 1070 et
seq.), and is extended to a consumer expressly, in whole or in part, for postsecondary education
expenses regardless of whether the loan is provided by the educational institution that the student
attends.
“(B) The term does not include:
“(i) Open-end credit or any loan that is secured by real property or
a dwelling; or
“(ii) An extension of credit in which the covered educational
institution is the creditor if the term is 90 days or less or an interest rate will not be applied to the
credit balance and the term of the extension of credit is one year or less, even if the credit is
payable in more than 4 installments.
(4) Paragraph (9) is amended to read as follows:
“(9) “Student loan borrower” means a resident of the District of Columbia who
has received or agreed to pay a student education loan or a private education loan to fund his or
her postsecondary education.”.
(5) A new paragraph (13) is added to read as follows:
“(13) “Total and permanent disability” is the condition of an individual who:
“(A) Has been determined by the United State Secretary of Veterans
Affairs to be unemployable due to a service-connected disability; or
“(B) Is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment that can be expected to result in
death, has lasted for a continuous period of not less than 12 months, or can be expected to last for
a continuous period of not less than 12 months.”.
(b) Section 7a(c)(10) (D.C. Official Code § 31-106.01(c)(10)) is amended to read as
follows:
“(10) By January 1, 2025, develop an updated consumer-facing student loan borrower bill
of rights, and make it available on the Department’s website.”.
(c) Section 7b (D.C. Official Code § 31-106.02) is amended as follows:
(1) Subsection (c) is amended as follows:
(A) Paragraph (1)(B) is amended by striking the phrase “Application fees
and other fees” and inserting the phrase “Application fees, investigation fees, and other fees” in
its place.
(B) A new paragraph (3) is added to read as follows:
“(3) The Commissioner shall automatically issue a limited, irrevocable license to
a person or entity servicing a student education loan under contract with the United States
Department of Education provided that:
“(A)(i), A person or entity seeking to act within the District of Columbia
as a student loan servicer is exempt from the application procedures established pursuant to this ENROLLED ORIGINAL
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subsection, other than the requirements of paragraphs (1)(B) and (1)(D) of this subsection, to the
extent that the student loan servicing performed is conducted pursuant to a contract awarded by
the United States Secretary of Education under 20 U.S.C. § 1087f.
“(ii) The Commissioner shall prescribe the procedure to document
eligibility for the exemption and maintain records documenting each person and entity issued a
license pursuant to this paragraph.
“(B) A person or entity meeting the criteria set forth in subparagraph (A)
of this paragraph shall be issued a license by the Commissioner for the student loan servicing of
student education loans under contract with the United States Department of Education and shall
be deemed by the Commissioner to have met all the requirements established by subparagraphs
(1)(A) and (C) of this subsection.
“(C) The provisions of subsection (h) of this section shall not apply to a
person or entity issued a limited license pursuant to this section to the extent that the person or
entity is servicing a federal student education loan.
“(D)(i) A person or entity issued a license pursuant to this section shall
provide the Commissioner with written notice within 7 days following the notification of the
expiration, revocation, or termination of any contract awarded by the United States Secretary of
Education under 20 U.S.C § 1087f (“written notice”).
“(ii) After providing the written notice required by sub-
subparagraph (i) of this subparagraph, the person or entity shall have 30 days to satisfy all the
requirements established under this section in order to continue to act within the District of
Columbia as a student loan servicer for federal student education loans.
“(iii) At the expiration of the 30-day period provided in sub-
subparagraph (ii) of this subparagraph, if the person or entity has not satisfied the requirements
established pursuant to this section, the Commissioner shall immediately suspend any license
granted under this section.
“(E) In the case of student loan servicing that is not conducted pursuant to
a contract awarded by the United States Secretary of Education under 20 U.S.C. § 1087f, nothing
in this section shall prevent the Commissioner from issuing an order to temporarily or
permanently prohibit a person or entity from acting as a student loan servicer.
“(F) In the case of student loan servicing conducted pursuant to a contract
awarded by the United States Secretary of Education under 20 U.S.C § 1087f, nothing in this
section shall prevent the Commissioner from issuing a cease-and-desist order or an injunction
against a student loan servicer to cease activities in violation of this act or D.C. Official Code
§28-3901 et seq.”.
(2) Subsection (g)(1)(C) is amended by striking the phrase “The Commissioner
may deny an application for renewal” and inserting the phrase “Except as provided under
subsection (c)(3) of this section, the Commissioner may deny an application for renewal” in its
place. ENROLLED ORIGINAL
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(3) A new subsection (k) is added to read as follows:
“(k) In a format prescribed by the Commissioner, a licensee shall maintain the
contact information for the Department and the Ombudsman, as defined in section 2(6B), on the
licensee’s website.”.
(d) New sections 7b-1, 7b-2, 7b-3, 7b-4, and 7b-5 are added to read as follows:
“Sec. 7b-1. Prohibited conduct – student loan servicers.
“(a) No student loan servicer shall:
“(1) Directly or indirectly employ any scheme, device, or artifice to defraud a
student loan borrower;
“(2) Directly or indirectly employ any scheme, device, or artifice to mislead a
student loan borrower;
“(3) Engage in any unfair or deceptive practice toward any person or misrepresent
or omit any material information in connection with the servicing of a student education loan,
including an abusive act and practice;
“(4) Obtain property by fraud;
“(5) Obtain property by misrepresentation;
“(6) Misapply student education loan payments to the outstanding balance of a
student education loan;
“(7) Provide inaccurate information to a credit bureau, harming a student loan
borrower's creditworthiness;
“(8) Fail to report both the favorable and unfavorable payment history of the
student loan borrower to a nationally recognized consumer credit bureau at least annually if the
student loan servicer regularly reports information to a credit bureau;
“(9) Refuse to communicate with an authorized representative of the student loan
borrower who provides a written authorization signed by the student loan borrower; except, that
the student loan servicer may adopt procedures reasonably related to verifying that the
representative is authorized to act on behalf of the student loan borrower;
“(10) Make a false statement or make an omission of a material fact in connection
with any information or report filed with a governmental agency or in connection with any
investigation conducted by the Commissioner or another governmental agency;
“(11) Fail to respond within 15 business days to a communication from the
Department, or the Office of the Attorney General, or within such shorter reasonable period of
time as may be requested by the Department or the Attorney General; or
“(12)(A) Fail to respond within 15 business days to a consumer complaint
submitted to the student loan servicer by the Department or the Office of the Attorney General.
“(B) A student loan servicer may request additional time to respond to the
complaint, up to a maximum of 45 business days, provided that the request is accompanied by an
explanation as to why additional time is reasonable and necessary.
“Sec. 7b-2. Affirmative duties – student loan servicers. ENROLLED ORIGINAL
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“(a) Except as otherwise provided pursuant to federal law or a student education loan
agreement, a student loan servicer shall:
“(1) Respond to any written inquiry from a student loan borrower or the
representative of a student loan borrower by:
“(A) Acknowledging receipt of the inquiry within 10 business days; and
“(B) Providing information relating to the inquiry, and, if applicable, the
action the student loan servicer will take to correct the account or an explanation of the student
loan servicer's determination that the borrower's account is correct within 30 business days,
including copies of all information and account information used by the student loan servicer in
reaching the determination.
“(2) Inquire of a student loan borrower who has an overpayment on how the
student loan borrower wants to apply the overpayment to a student education loan. A student
loan borrower's instruction on how to apply an overpayment to a student education loan shall
stay in effect for any future overpayments during the term of the student education loan until the
borrower provides different instructions.
“(3)(A) In the absence of direction provided by a student loan borrower pursuant
to paragraph (2) of this subsection, allocate an overpayment on a student loan account in a
manner that reduces the total cost of the student loan, including principal and balance, interest,
and fees.
“(B) A student loan servicer shall be deemed to meet the requirements of
this paragraph if the servicer allocates the overpayment to the loan with the highest interest rate
on the student loan borrower’s account, unless the student loan borrower specifies otherwise.
“(4)(A) In the absence of direction provided by a student loan borrower pursuant
to paragraph (2) of this subsection, apply partial payments in a manner that minimizes late fees
and negative credit reporting.
“(B) If there are multiple loans on a student loan borrower’s account with
an equal stage of delinquency, apply the partial payment in a way that satisfies as many
individual loan payments as possible on a student loan borrower's account.
“(b) Except as otherwise provided by federal law or regulation, the following
requirements shall be applicable to a student loan servicer in the event of the sale, assignment, or
other transfer of the servicing of a student education loan that results in a change in the identity
of the student loan servicer to whom a student loan borrower is required to send payments or
direct any communication concerning the student education loan:
“(1)(A) As a condition of a sale, an assignment, or any other transfer of the
servicing of a student education loan, a student loan servicer shall require the new student loan
servicer to honor all benefits originally represented as available to a student loan borrower during
the repayment of the student education loan and preserve the availability of those benefits,
including any benefits for which the student loan borrower has not yet qualified. ENROLLED ORIGINAL
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“(B) If a student loan servicer is not also the loan holder or is not acting on
behalf of the loan holder, the student loan servicer satisfies the requirement established by this
paragraph by providing the new student loan servicer with the information necessary for the new
student loan servicer to honor all benefits originally represented as available to a student loan
borrower during the repayment of the student education loan and preserve the availability of the
benefits, including any benefits for which the student loan borrower has not yet qualified.
“(2) A student loan servicer shall transfer to the new student loan servicer for the
student education loan all information regarding the student loan borrower, the account of the
student loan borrower, and the student education loan of the student loan borrower. The
information shall include the repayment status of the student loan borrower and any benefits
associated with the student education loan of the borrower.
“(3) The student loan servicer shall complete the transfer of information required
pursuant to paragraph (2) of this subsection within 45 calendar days after the sale, assignment, or
other transfer of the servicing of the student education loan.
“(4) The transferring student loan servicer shall notify affected student loan
borrowers of the sale, assignment, or other transfer of the servicing of the student education loan
at least 7 days before the next payment on the loan is due, which notice shall include:
“(A) The identity of the new student loan servicer;
“(B) The effective date of the transfer of the student loan borrower’s
student education loan to the new student loan servicer;
“(C) The date on which the existing student loan servicer will no longer
accept payments and whether and by when any action will need to be taken to update auto-debit
payments; and
“(D) The contact information for the new student loan servicer, including
phone number, email address, mailing address, and fax number.
“(c) A student loan servicer who obtains the right to service a student education loan shall
adopt policies and procedures to verify that the student loan servicer has received all information
regarding the student loan borrower, the account of the student loan borrower, and the student
education loan of the student loan borrower, including the repayment status of the student loan
borrower and any benefits associated with the student education loan of the student loan
borrower.
“(d) A student loan servicer shall evaluate a student loan borrower for eligibility for an
income-driven repayment program prior to placing the student loan borrower in forbearance or
default if an income-driven repayment program is available to the student loan borrower.
“Sec. 7b-3. Prohibited acts – private education lenders.
“(a)(1) A private education loan executed after the applicability date of this section shall
not include a provision that permits the private education lender to accelerate, in whole or in part,
payments on a private education loan except in cases of payment default or place any loan or
account into default or accelerate a loan for any reason other than for payment default. ENROLLED ORIGINAL
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“(2) A private education loan executed prior to the applicability date of this
section shall permit the private education lender to accelerate payments only if the promissory
note or private education loan agreement explicitly authorizes an acceleration and only for the
reasons stated in the note or agreement.
“(3) In the event of the death of a cosigner, the lender shall not attempt to collect
against the cosigner’s estate other than for payment default.
“(4) Upon receiving notification of the death or bankruptcy of a cosigner, when
the private education loan is not more than 60 days delinquent at the time of the notification, the
private education lender shall not change any terms or benefits under the promissory note,
repayment schedule, repayment terms, or monthly payment amount or any other provision
associated with the private education loan.
“(5) A private education lender shall not place any private education loan or
account into default or accelerate a private education loan while a student loan borrower is
seeking a loan modification or enrollment in a flexible repayment plan; except, that a private
education lender may place a private education loan or account into default or accelerate a
private education loan for payment default 90 days after the student loan borrower’s default.
“(b) A private education lender shall not:
“(1) Directly or indirectly employ any scheme, device, or artifice to defraud a
student loan borrower;
“(2) Directly or indirectly employ any scheme, device, or artifice to mislead a
student loan borrower;
“(3) Engage in any unfair or deceptive practice toward any person or misrepresent
or omit any material information in connection with the servicing of a private education loan,
including, abusive acts and practices;
“(4) Obtain property by fraud;
“(5) Obtain property by misrepresentation;
“(6) Misapply private education loan payments to the outstanding balance of a
private education loan;
“(7) Provide inaccurate information to a credit bureau, thereby harming a student
loan borrower’s creditworthiness;
“(8) Fail to report both the favorable and unfavorable payment history of the
student loan borrower to a nationally recognized consumer credit bureau at least annually if the
private education lender regularly reports information to a credit bureau;
“(9) Refuse to communicate with an authorized representative of the student loan
borrower who provides a written authorization signed by the student loan borrower; except, that
the private education lender may adopt procedures reasonably related to verifying that the
representative is authorized to act on behalf of the student loan borrower; ENROLLED ORIGINAL
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“(10) Make any false statement or make any omission of a material fact in
connection with any information or reports filed with a governmental agency or in connection
with any investigation conducted by the Commissioner or another governmental agency;
“(11) Fail to respond within 15 business days to communications from the
Department or the Office of the Attorney General, or within such shorter reasonable period of
time as may be requested by the Commissioner or the Attorney General; or
“(12)(A) Fail to respond within 15 business days to a consumer complaint
transmitted to the private education lender by the Department or the Office of the Attorney
General.
“(B) A private education lender may request additional time to respond to
the complaint, up to a maximum of 45 business days, provided that the request is accompanied
by an explanation as to why additional time is reasonable and necessary.
“Sec. 7b-4. Affirmative duties – private education lenders.
“(a) For a private education loan issued on or after the applicability date of this section:
“(1) A private education lender or student loan servicer acting on behalf of a
private education lender when notified of the total and permanent disability of a student loan
borrower or cosigner shall release any cosigner from the obligations under the private education
loan. The private education lender shall not attempt to collect a payment from a cosigner after
being notified of the total and permanent disability of the cosigner or borrower.
“(2) A private education lender shall notify a student loan borrower and cosigner
for a private education loan if either a cosigner or the student loan borrower is released from the
obligations of the private education loan under this subsection within 30 days of the release.
“(3) A private education lender that extends a private education loan to a student
loan borrower shall provide the student loan borrower an option to designate an individual to
have the legal authority to act on behalf of the student loan borrower with respect to the private
education loan in the event of the total and permanent disability of the student loan borrower.
“(4) In the event a cosigner is released from the obligations of a private education
loan pursuant to paragraph (1) of this subsection, the private education lender shall not require
the student loan borrower to obtain another cosigner on the private education loan obligation.
“(5) A private education lender shall not declare a default or accelerate the debt
against the student loan borrower on the sole basis of the release of the cosigner from the private
education loan obligation.
“(6) A private education lender shall when notified of the total and permanent
disability of a student loan borrower discharge the liability of the student loan borrower and
cosigner on the private education loan.
“(7) After receiving a notification pursuant to paragraph (1) of this subsection, the
private education lender shall not attempt to collect on the outstanding liability of the student
loan borrower or cosigner or monitor the disability status of the student loan borrower after the
date of discharge. ENROLLED ORIGINAL
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“(b) Availability of alternative repayment plans.
“(1) If a private education lender offers a student loan borrower flexible or
modified repayment options in connection with a private education loan, those flexible
repayment options shall be made available to all borrowers and the private education lender
shall:
“(A) Provide on its website a description of any alternative repayment
options offered by the private education lender for a private education loan; and
“(B) Establish policies and procedures to facilitate evaluation of private
education loan flexible repayment option requests, including providing accurate information
regarding any private education loan alternative repayment options that may be available to the
student loan borrower through a promissory note or that may have been marketed to the student
loan borrower through marketing materials.
“(2) A private education lender or a student loan servicer acting on behalf of a
private education lender shall consistently present and offer flexible or modified private
education loan repayment options to student loan borrowers with similar financial circumstances,
if the private education lender offers such repayment options.
“(c)(1) Prior to the extension of a private education loan that requires a cosigner, a private
education lender shall deliver the following information to the cosigner:
“(A) How the private education loan obligation shall appear on the
cosigner’s credit;
“(B) How the cosigner shall be notified if the private education loan
becomes delinquent, including how the cosigner can cure the delinquency in order to avoid
negative credit furnishing and loss of cosigner release eligibility; and
“(C) Eligibility for release of the cosigner’s obligation on the private
education loan, including the number of on-time payments and any other criteria required to
approve the release of the cosigner from the private education loan obligation.
“(2) Prior to offering a person a private education loan that is being used to
refinance an existing education loan, a private education lender shall provide the person a
disclosure that benefits and protections applicable to the existing loan may be lost due to the
refinancing.
“(3) The information provided pursuant to this section shall be provided on a one-
page information sheet in a 12-point font and shall be written in simple, clear, understandable
and easily readable language as provided in the Plain Writing Act of 2010 (5 U.S.C. § 301, note).
“(d)(1) For any private education loan that obligates a cosigner, a private education
lender shall provide the student loan borrower and the cosigner an annual written notice
containing information about cosigner release, including the administrative, objective criteria the
private education lender requires to approve the release of the cosigner from the private
education loan obligation and the process for applying for cosigner release. ENROLLED ORIGINAL
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“(2) If the student loan borrower has met the applicable requirements to be
eligible for cosigner release, the private education lender shall send the student loan borrower
and the cosigner a written notification by U.S. mail, and by electronic mail when a student loan
borrower or cosigner has elected to receive electronic communications from the private
education lender, informing the student loan borrower and cosigner that the requirements to be
eligible for cosigner release have been met.
“(3) A private education lender shall provide written notice to a borrower who
applies for cosigner release, but whose application is incomplete. The written notice shall include
a description of the information needed to consider the application complete and the date by
which the applicant must furnish the missing information.
“(4)(A) Within 30 days after a student loan borrower submits a completed
application for cosigner release, the private education lender shall send the student loan borrower
and the cosigner a written notice that informs the student loan borrower and cosigner whether the
cosigner release application has been approved or denied.
“(B) If the private education lender denies the request for cosigner release,
the student loan borrower may request any documents or information used in the determination,
including the credit score threshold used by the private education lender, the student loan
borrower’s consumer report, the student loan borrower’s credit score, and any other documents
specific to the student loan borrower. The private education lender shall also provide any adverse
action notices required under applicable federal law if the denial is based in whole or in part on
any information contained in a consumer report.
“(5) In response to a written or oral request for cosigner release, a private
education lender shall provide the information described in paragraph (1) of this subsection.
“(6) A private education lender shall not impose any restriction that permanently
bars a student loan borrower from qualifying for cosigner release, including restricting the
number of times a student loan borrower may apply for cosigner release.
“(7)(A) A private education lender shall not impose any negative consequences
on a student loan borrower or cosigner during the 60 days following the issuance of the notice
required pursuant to paragraph (3) of this subsection or until the private education lender makes
a final determination about a borrower’s cosigner release application.
“(B) For the purpose of this paragraph, the term “negative consequences”
includes the imposition of additional eligibility criteria, negative credit reporting, lost eligibility
for cosigner release, late fees, interest capitalization, or other financial penalty.
“(8)(A) For a private education loan executed after the applicable date of this
section, a private education lender shall not require more than 12 consecutive, on-time payments
as a requirement for cosigner release.
“(B) A student loan borrower who has paid the equivalent of 12 months of
principal and interest payments within any 12-month period shall be considered to have satisfied ENROLLED ORIGINAL
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a consecutive, on-time payment requirement even if the student loan borrower has not made
payments monthly during the 12-month period.
“(9) If a student loan borrower or cosigner requests a change in terms that restarts
the counting of consecutive, on-time payments required for cosigner release, the private
education lender shall notify the student loan borrower and cosigner in writing of the impact of
the change and provide the student loan borrower or the cosigner the right to withdraw or reverse
the request to avoid that impact.
“(10)(A) A student loan borrower shall have the right to request a reconsideration
of a private education lender’s denial of a request for cosigner release, and the private education
lender shall permit the student loan borrower to submit additional documentation evidencing the
borrower’s ability to meet the payment obligations.
“(B) The student loan borrower may request review of the cosigner release
determination by a different employee than the employee who made the original determination.
“(11)(A) A private education lender shall establish and maintain a comprehensive
record-management system (“record-management system”) reasonably designed to ensure the
accuracy, integrity, and completeness of data and other information about cosigner release
applications and compliance with applicable District and federal laws, including the Equal Credit
Opportunity Act (15 U.S.C. § 1691 et seq.) and the Fair Credit Reporting Act (15 U.S.C. § 1681
et seq.).
“(B) The record-management system shall also include the:
“(i) Number of cosigner release applications received;
“(ii) Approval and denial rate; and
“(iii) primary reasons for any denial.
“(e)(1) A private education lender shall provide a cosigner with access to all documents
or records related to the cosigned private education loan that are available to the student loan
borrower.
“(2) If a private education lender provides electronic access to documents and
records for a student loan borrower, it shall provide the equivalent electronic access to the
cosigner.
“(3) Upon written notice from the student loan borrower or cosigner, the private
education lender may redact or withhold contact information for the student loan borrower and
cosigner.
“Sec. 7b-5. Enforcement.
“(a) In addition to complying with the requirements of the New Student Loan Borrower
Bill of Rights Amendment Act of 2024, passed on 2nd reading on September 17, 2024 (Enrolled
version of Bill 25-37) (“act”), a student loan servicer shall comply with all applicable federal
laws relating to student loan servicing, as from time to time amended, and the regulations
promulgated pursuant to those federal laws. ENROLLED ORIGINAL
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“(b) A violation of section 7b-1 or 7b-3 is an unfair or deceptive trade practice pursuant
to D.C. Official Code § 28-3904.
“(c) Any person who suffers damage as a result of the failure of a student loan servicer or
private education lender to comply with sections 7b, 7b-1, 7b-2, 7b-3, 7b-4, or 7b-5(a) may bring
an action on their own behalf and on behalf of a similarly situated class of consumers against that
student loan servicer or private education lender to recover or obtain:
“(1) Actual damages, but in no case shall the total award of damages be less than
$500 per plaintiff, per violation;
“(2) An order enjoining the methods, acts, or practices;
“(3) Restitution of property;
“(4) Punitive damages;
“(5) Attorney’s fees; or
“(6) Any other relief that the court considers proper.
“(d) In addition to any other remedies provided by this section or otherwise provided by
law, whenever it is proven by a preponderance of the evidence that a student loan servicer or
private education lender has engaged in conduct that substantially interferes with a student
borrower’s right to an alternative payment arrangement, loan forgiveness, cancellation, or
discharge, or any other financial benefit, as established under the terms of a student loan
borrower’s promissory note or under the Higher Education Act of 1965 (20 U.S.C. § 1070a et
seq.), (“Higher Education Act”), as from time to time amended, and regulations promulgated
pursuant to the Higher Education Act, the court shall award treble actual damages to the plaintiff,
but in no case shall the award of damages be less than $1,500 per violation.
“(e) The remedies provided in this section are not the exclusive remedies available to a
student loan borrower or cosigner, nor must the student loan borrower exhaust any administrative
remedies provided in this section or any other applicable law before proceeding pursuant to this
section.
“(f) The Attorney General may bring an action for any violation of sections 7b, 7b-1, 7b-
2, 7b-3, 7b-4 or 7b-5(a) under the authority granted in § 28-3909.
“(g) The Department shall share information on a quarterly basis related to the
implementation, execution, and enforcement of sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 and 7b-5(a)
with the Office of the Attorney General.
(e) Section 7c is amended by striking the phrase “sections 7a and 7b.” and inserting the
phrase “sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 and 7b-5(a).” in its place.
Sec. 3. Conforming amendment.
Section 28-3903 of the District of Columbia Official Code is amended by adding a new
subsection (d) to read as follows:
“(d) The Attorney General may bring an action pursuant to section 7b-5(f) of the
Department of Insurance and Securities Regulation Establishment Act of 1996, passed on 2nd ENROLLED ORIGINAL
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reading on September 17, 2024 (Enrolled version of Bill 25-37) (“act”), for a violation of
sections 7b, 7b-1, 7b-2, 7b-3, 7b-4 or 7b-5(a) of the act.
Sec. 4. Applicability.
This act shall apply as of October 1, 2024.
Sec. 5. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as the fiscal
impact statement required by section 4a of the General Legislative Procedures Act of 1975,
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
Sec. 6. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the
Mayor, action by the Council to override the veto) and a 30-day period of congressional review
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).
______________________________
Chairman
Council of the District of Columbia
_________________________________
Mayor
District of Columbia