North Carolina 2023-2024 Regular Session

North Carolina Senate Bill S196

Introduced
3/2/23  

Caption

Student Borrowers' Bill of Rights

Impact

If enacted, S196 will significantly impact state laws by modifying Chapter 53 of the General Statutes. Among its provisions, the bill introduces specific licensing requirements for student loan servicers, ensuring that they maintain a minimum net worth and adhere to strict operational standards. This change is intended to protect consumers by reducing the risk of predatory lending practices and providing borrowers with a clearer pathway to address grievances. Furthermore, the establishment of the Student Loan Ombudsman will facilitate better communication between borrowers and servicers, promoting financial literacy and empowering borrowers to make informed decisions about their loans.

Summary

Senate Bill 196, known as the Student Borrowers' Bill of Rights, aims to establish comprehensive protections for student loan borrowers in North Carolina. The legislation mandates that the Commissioner of Banks shall license and regulate student loan servicers, ensuring fair treatment for borrowers. This bill is a response to the increasing concerns regarding unethical practices in student loan servicing and aims to enhance transparency and accountability in the industry. Additionally, it proposes the creation of a Student Loan Ombudsman position to help borrowers navigate the complexities of student loans, address complaints, and provide educational resources.

Sentiment

The reception of S196 appears to be largely positive among advocates of consumer protection and financial reform, who view it as a necessary step toward safeguarding the rights of student borrowers. Supporters believe that the bill will create a more equitable student loan landscape, particularly in the wake of the financial challenges faced by many borrowers. However, there may be some opposition from servicers concerned about the increased regulation and potential costs associated with compliance. The sentiment reflects a broader conflict between the need for consumer protections and the operational burdens placed on financial service providers.

Contention

Notably, the bill has sparked discussions about the balance of regulation versus accessibility in the student loan market. Critics may argue that stringent regulations could deter providers from servicing loans in North Carolina, potentially limiting borrowers' options. Additionally, the financial implications for servicers—especially smaller companies—could lead to adjustments in how they operate. The bill aims to address these concerns by ensuring that regulations promote fairness without overly complicating the lending landscape.

Companion Bills

NC S194

Same As Student Borrowers' Bill of Rights

Previously Filed As

NC S194

Student Borrowers' Bill of Rights

NC S426

Student Borrowers' Bill of Rights

NC SB00716

An Act Concerning The Federal Student Loan Borrowers' Bill Of Rights Act Of 2019.

NC B25-0037

New Student Loan Borrower Bill of Rights Amendment Act of 2023

NC SB3404

Student Loan Borrower Bill of Rights

NC SB132

An Act To Amend Title 6 Of The Delaware Code Relating To The Student Loan Borrower Bill Of Rights Act.

NC HB71

Student Loan Bill Of Rights Act

NC HB224

Student Loan Bill Of Rights Act

NC HB82

Student Loan Bill Of Rights Act

NC HB06915

An Act Concerning A Student Loan Bill Of Rights.

Similar Bills

NC S194

Student Borrowers' Bill of Rights

NC S426

Student Borrowers' Bill of Rights

TX SB1859

Relating to regulating the servicing of certain student loans, requiring the occupational licensing of certain student loan servicers, and the designation of a student loan ombudsman within the Texas Department of Banking; authorizing fees; authorizing civil and administrative penalties.

CT HB06915

An Act Concerning A Student Loan Bill Of Rights.

NC H717

Amend NC PEO Act.-AB

NC S268

Amend NC PEO Act.-AB

NC H762

Modernize NC S.A.F.E. Act/2d Mortgage Fee Act

NC H979

Update Volunteer System/LTC Ombudsman Program