ENROLLED
ACT No. 715
2022 Regular Session
HOUSE BILL NO. 789
BY REPRESENTATIVE WILLARD
1 AN ACT
2 To enact Chapter 22 of Title 6 of the Louisiana Revised Statutes of 1950, to be comprised
3 of R.S. 6:1401 through 1404, relative to private education lenders; to create a
4 registry; to provide for required contents; to allow for enforcement; to provide for
5 rulemaking; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. Chapter 22 of Title 6 of the Louisiana Revised Statutes of 1950,
8 comprised of R.S. 6:1401 through 1404, is hereby enacted to read as follows:
9 CHAPTER 22. PRIVATE STUDENT LOAN REGISTRY
10 §1401. Definitions
11 For purposes of this Chapter the following words have the following
12 meanings:
13 (1) "Commissioner" means the commissioner of the Office of Financial
14 Institutions.
15 (2) "Private education lender" means any person engaged in the business of
16 securing, making, or extending a private education loan, or any holder of a private
17 education loan. "Private education lender" shall not include any person who
18 services a private education loan, to the extent such person does not also secure,
19 make, extend, or own the loan. "Private education lender" shall not include any
20 federally insured financial institution, its subsidiaries, and affiliates.
21 (3) "Private education loan" means an extension of credit or a debt or
22 obligation owed or incurred by a consumer, contractual or otherwise, contingent or
23 absolute, that meets all of the following criteria:
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1 (a) Is not made, insured, or guaranteed under Title IV of the Higher
2 Education Act of 1965 (20 U.S.C. 1070 et seq.).
3 (b) Is extended to or owed or incurred by a consumer expressly, in whole or
4 in part, for postsecondary education expenses, regardless of whether the extension
5 of credit or debt or obligation owed or incurred is provided by the provider of
6 postsecondary education that the student attends.
7 (c) Does not include any loan that is secured by immovable property or a
8 dwelling.
9 (4) "Provider of postsecondary education" means a person engaged in the
10 business of providing postsecondary education, via correspondence, online, or in this
11 state, to a person located in this state.
12 §1402. Private education lender registry
13 A. No person shall engage in business as a private education lender in this
14 state without first satisfying the requirements set forth in Subsection B of this
15 Section.
16 B. A private education lender operating in this state shall do all of the
17 following:
18 (1) Register with the commissioner pursuant to any registration procedures
19 set forth by the commissioner by rule, which may include the payment of a fee set
20 by the commissioner by rule and registration through the Nationwide Multistate
21 Licensing System and Registry. The commissioner may prescribe an alternative
22 registration process and fee structure for a provider of postsecondary education. The
23 registration requirements of this Paragraph shall not apply to a licensed lender
24 pursuant to R.S. 9:3557 or any bank, savings bank, savings and loan association, or
25 credit union operating pursuant to authority granted by the commissioner.
26 (2) Provide the commissioner with the following documents and
27 information:
28 (a) A list of all schools at which the private education lender has provided
29 a private education loan to a student residing in this state.
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1 (b) The total number and dollar amount of private education loans made
2 annually to students residing in this state.
3 (c) The total number and dollar amount of private education loans made
4 annually at each school as identified in Subparagraph (a) of this Paragraph.
5 (d) The range of starting interest rates and percentage of applicants who
6 receive those rates.
7 (e) The default rate for borrowers obtaining private education loans from the
8 private education lender, if applicable, including the default rate for private
9 education loans made to students for each school listed pursuant to Subparagraph (a)
10 of this Paragraph.
11 (f) A copy of the promissory note, agreement, contract or other instrument
12 used by a private education lender during the previous year to substantiate that a
13 private education loan has been extended to the consumer or that a consumer owes
14 a debt to the private education lender.
15 (g) The total number and dollar amount of private education loans made with
16 a cosigner annually.
17 (3) Provide to the commissioner the documents and information enumerated
18 in Paragraph (B)(2) of this Section pursuant to any procedures set forth by the
19 commissioner, which may include reporting through the Nationwide Multistate
20 Licensing System and Registry.
21 C. Not later than one year following enactment of this Chapter, the
22 commissioner shall create a publicly accessible website that includes the following
23 information about private education lenders registered in this state:
24 (1) The name, address, telephone number, and website for all registered
25 private education lenders.
26 (2) A summary of the information required by Paragraph (B)(2) of this
27 Section.
28 (3) Copies of all promissory notes, agreements, contracts, or other
29 instruments provided to the commissioner as required by Subparagraph (B)(2)(f) of
30 this Section.
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1 §1403. Violations
2 The commissioner may enforce the provisions of this Chapter using the
3 commissioner's authority pursuant to R.S. 6:121.1. Each violation of this Chapter,
4 including any order, rule, or regulation made or issued pursuant to this Chapter, shall
5 constitute a separate offense.
6 §1404. Rules
7 The commissioner shall promulgate rules as are necessary to implement the
8 provisions of this Chapter.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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