DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 789 Engrossed 2022 Regular Session Willard
Abstract: Creates a private educational lender registry.
Proposed law defines "commissioner", "private education lender", " private education loan", and
"provider of postsecondary education".
Proposed law requires all private education lenders in the state to register with the commissioner and
provide certain information and documentation relative to the private education loans handled by the
lender.
Proposed law requires the commissioner of the Office of Financial Institutions to use the information
collected to create a public website compiling certain information regarding private lenders in the
state and documentation of this information.
Proposed law requires the commissioner to create the website within one year of enactment of
proposed law.
Proposed law allows the commissioner to set a registration fee and to develop an alternative
registration process and fee structure for a provider of postsecondary education.
Proposed law provides penalties for violations of proposed law and specifies that each violation is
a separate offense.
Proposed law requires the commissioner to make rules to carry out proposed law.
(Adds R.S. 6:1401-1404)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the original bill:
1. Provide additional parameters relative to the definition of "private education lender".
2. Add a definition for "private education loan".
3. Allow the commissioner to set a registration fee by rule. 4. Allow the commissioner to provide an alternative registration process and fee structure
for a provider of postsecondary education.
5. Remove the one-year period in which a private education lender can provide certain
documents and information.
6. Specify that loans are to be indicated by a total number and dollar amount of the loans.
7. Add a requirement that a private lender include the default rate for private education
loans in the information provided to the commissioner.
8. Provide for the authority in present law by which the commissioner can enforce proposed
law.
9. Reduce the civil penalty that may be imposed by the commissioner from a maximum of
$25,000 to a maximum of $1,000.
10.Remove provisions of proposed law that allow the commissioner to prohibit a violating
lender from acting as a private education lender for 10 years.
11.Remove provisions of proposed law that impose liability on a private education lender
for a violation of proposed law.
12.Make technical changes.