New Mexico 2025 Regular Session

New Mexico House Bill HB224 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 224
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
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45	45	2025
46	46	INTRODUCED BY
47	47	Christine Chandler
48	48	AN ACT
49	49	RELATING TO FINANCIAL INSTITUTIONS; ENACTING THE STUDENT LOAN
50	50	BILL OF RIGHTS ACT; PROVIDING FOR A STUDENT LOAN SERVICER'S
51	51	LICENSE; DELINEATING THE DUTIES OF A STUDENT LOAN SERVICER;
52	52	GIVING ADMINISTRATIVE RESPONSIBILITY AND ENFORCEMENT POWER TO
53	53	THE FINANCIAL INSTITUTIONS DIVISION OF THE REGULATION AND
54	54	LICENSING DEPARTMENT; PROVIDING FOR DISCHARGE OF PRIVATE
55	55	EDUCATION LOANS UPON A SHOWING OF PERMANENT DISABILITY;
56	56	REQUIRING THAT ALTERNATIVE REPAYMENT OPTIONS BE OFFERED TO
57	57	BORROWERS EQUALLY; PROVIDING RIGHTS FOR COSIGNERS, INCLUDING
58	58	NOTICE AND ACCESS TO INFORMATION; PROVIDING FOR COSIGNER
59	59	RELEASE; PROHIBITING CERTAIN ACCELERATION OF PRIVATE EDUCATION
60	60	LOANS; CREATING THE POSITION OF STUDENT LOAN OMBUD; DEFINING
61	61	CERTAIN VIOLATIONS OF THE STUDENT LOAN BILL OF RIGHTS ACT AS
62	62	UNFAIR AND UNCONSCIONABLE TRADE PRACTICES; CREATING A PRIVATE
63	63	RIGHT OF ACTION; CREATING THE STUDENT LOAN BILL OF RIGHTS FUND;
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91	91	PROVIDING FOR JUDICIAL ENFORCEMENT; PROVIDING PENALTIES; MAKING
92	92	AN APPROPRIATION.
93	93	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
94	94	SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
95	95	through 27 of this act may be cited as the "Student Loan Bill
96	96	of Rights Act".
97	97	SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
98	98	Student Loan Bill of Rights Act:
99	99	A. "cosigner":
100	100	(1) means an individual who is liable for the
101	101	obligation of another without compensation, regardless of how
102	102	the individual is designated in the contract or instrument with
103	103	respect to that obligation, including an obligation under a
104	104	private education loan extended to consolidate a borrower's
105	105	preexisting student loans;
106	106	(2) includes any person whose signature is
107	107	requested as a condition to grant credit or to forbear on
108	108	collection; and
109	109	(3) does not include a spouse of an individual
110	110	described in Paragraph (1) of this subsection, the signature of
111	111	whom is needed to perfect the security interest in a loan;
112	112	B. "director" means the director of the division;
113	113	C. "division" means the financial institutions
114	114	division of the regulation and licensing department;
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143	143	D. "person" includes legal representatives,
144	144	unincorporated organizations, trustees, fiduciaries and public
145	145	entities;
146	146	E. "post-secondary education expense" means any
147	147	expense, including tuition, associated with attendance at or
148	148	enrollment in a publicly or non-publicly funded post-secondary
149	149	educational institution as defined by Subsections F and G of
150	150	Section 21-23-3 NMSA 1978 for expenses related to courses,
151	151	instruction, training or education;
152	152	F. "private education lender" or "lender" means any
153	153	person engaged in the business of securing, making or extending
154	154	private education loans or any holder of a private education
155	155	loan. "Private education lender" does not include the
156	156	following persons, only to the extent that state regulation is
157	157	preempted by federal law:
158	158	(1) a bank or credit union;
159	159	(2) a wholly owned subsidiary of a bank or
160	160	credit union;
161	161	(3) an operating subsidiary of a bank or
162	162	credit union where each owner of the operating subsidiary is
163	163	wholly owned by the same bank or credit union; and
164	164	(4) the higher education department;
165	165	G. "private education loan":
166	166	(1) means an extension of credit that is not
167	167	made, insured or guaranteed under Title 4 of the federal Higher
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196	196	Education Act of 1965;
197	197	(2) means an extension of credit that is
198	198	extended to a consumer expressly, in whole or in part, for
199	199	post-secondary education expenses, regardless of whether the
200	200	loan is provided by the educational institution that the
201	201	student attends;
202	202	(3) does not include open-end credit or any
203	203	loan that is secured by real property or a dwelling; and
204	204	(4) does not include an extension of credit in
205	205	which the covered educational institution is the creditor if:
206	206	(a) the term of the extension of credit
207	207	is ninety days or less; or
208	208	(b) an interest rate shall not be
209	209	applied to the credit balance and the term of the extension of
210	210	credit is one year or less, even if the credit is payable in
211	211	more than four installments;
212	212	H. "servicing" includes:
213	213	(1) receiving scheduled periodic payments from
214	214	a student loan borrower pursuant to the terms of a student
215	215	education loan;
216	216	(2) applying payments of principal and
217	217	interest and other payments with respect to the amounts
218	218	received from a student loan borrower, as may be required
219	219	pursuant to the terms of a student education loan;
220	220	(3) maintaining account records for a student
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249	249	education loan and communicating with a student loan borrower
250	250	regarding a loan on behalf of the loan's holder during a period
251	251	when no payment is required on the loan; and
252	252	(4) interacting with a student loan borrower
253	253	to help prevent default on obligations arising from a student
254	254	education loan;
255	255	I. "student education loan" means an extension of
256	256	credit primarily for personal use to finance a student loan
257	257	borrower's post-secondary education expenses, but does not
258	258	include an isolated personal loan made by an individual to
259	259	another for post-secondary education expenses;
260	260	J. "student loan borrower" means:
261	261	(1) a resident of New Mexico who has received
262	262	or agreed to pay a student education loan; or
263	263	(2) a person who shares responsibility with a
264	264	resident of New Mexico for repaying a student education loan;
265	265	K. "student loan servicer" means a person engaged
266	266	in the business of servicing student education loans in New
267	267	Mexico; and
268	268	L. "total and permanent disability" means the
269	269	condition of an individual who:
270	270	(1) has been determined by the United States
271	271	secretary of veterans affairs to be unemployable due to a
272	272	service-connected disability; or
273	273	(2) is unable to engage in any substantial
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302	302	gainful activity by reason of any medically determinable
303	303	physical or mental impairment that can be expected to result in
304	304	death, has lasted for a continuous period of not less than
305	305	twelve months or can be expected to last for a continuous
306	306	period of not less than twelve months."
307	307	SECTION 3. [NEW MATERIAL] LICENSE REQUIRED--EXEMPTIONS.--
308	308	A. A person shall not act directly or act
309	309	indirectly as a student loan servicer without first obtaining a
310	310	license from the division pursuant to the Student Loan Bill of
311	311	Rights Act, unless that person is exempt from licensure
312	312	pursuant to Subsection B of this section.
313	313	B. The following persons are exempt from licensing
314	314	requirements pursuant to the Student Loan Bill of Rights Act:
315	315	(1) a bank or credit union;
316	316	(2) a wholly owned subsidiary of a bank or
317	317	credit union;
318	318	(3) an operating subsidiary of a bank or
319	319	credit union in which each owner of the operating subsidiary is
320	320	wholly owned by the same bank or credit union; and
321	321	(4) the higher education department.
322	322	SECTION 4. [NEW MATERIAL] LICENSE APPLICATION--
323	323	INVESTIGATION--LICENSE ISSUANCE.--
324	324	A. A person seeking to act as a student loan
325	325	servicer shall make a written application to the director for
326	326	an initial license in a form prescribed by the director. The
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355	355	application shall include:
356	356	(1) a financial statement of the person
357	357	applying, prepared by a certified or registered public
358	358	accountant, the accuracy of which is sworn to under oath before
359	359	a notary public by the proprietor, a general partner or a
360	360	corporate officer or a member duly authorized to execute such
361	361	documents;
362	362	(2) sufficient information pertaining to the
363	363	history of any criminal conviction of the applicant, whether an
364	364	individual or a partner, a member, an officer, a director or a
365	365	principal employee of the applicant, as the director deems
366	366	necessary to make the findings required pursuant to Subsection
367	367	F of this section;
368	368	(3) a nonrefundable initial license fee not to
369	369	exceed five thousand dollars ($5,000); and
370	370	(4) a nonrefundable investigation fee not to
371	371	exceed five thousand dollars ($5,000).
372	372	B. The director may periodically reduce or increase
373	373	the amount of one or more of the fees in Subsection A of this
374	374	section, but in no case more than the initial fees.
375	375	C. The director may require or allow applications
376	376	to be made electronically through the nationwide multistate
377	377	licensing system and registry. An applicant using that system
378	378	shall pay all required processing fees for the system.
379	379	D. Upon the filing of an application for an initial
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408	408	license and the payment of required fees, the director shall
409	409	investigate the financial condition and responsibility, the
410	410	financial and business experience and the character and general
411	411	fitness of the applicant.
412	412	E. The director may conduct a state and national
413	413	criminal history records check of the applicant and of each
414	414	partner, member, officer, director, trustee, fiduciary and
415	415	principal employee of the applicant.
416	416	F. The director shall issue a license for a student
417	417	loan servicer pursuant to the Student Loan Bill of Rights Act
418	418	if the director finds that:
419	419	(1) the applicant has submitted a completed
420	420	application;
421	421	(2) the applicant's financial condition is
422	422	sound;
423	423	(3) the applicant's business will be conducted
424	424	honestly, fairly, equitably, carefully, efficiently and in a
425	425	manner commanding the confidence and trust of the community;
426	426	(4) the applicant or a partner, a member, an
427	427	officer, a director, a trustee, a fiduciary or a principal
428	428	employee of the applicant has not been convicted of a crime
429	429	that relates to money lending, financing, financial matters,
430	430	fiduciary status, trustee status, fraud or another matter that
431	431	substantially relates to the qualifications, functions or
432	432	duties of a student loan servicer;
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461	461	(5) a person has not made an incorrect
462	462	statement of a material fact on behalf of the applicant either
463	463	in the application or in a report or statement made pursuant to
464	464	the Student Loan Bill of Rights Act;
465	465	(6) a person on behalf of the applicant has
466	466	not knowingly omitted to state a material fact on behalf of the
467	467	applicant necessary to give the director information lawfully
468	468	required by the director pursuant to the Student Loan Bill of
469	469	Rights Act;
470	470	(7) the applicant has paid the license fee and
471	471	investigation fee required by this section;
472	472	(8) the applicant has met all other
473	473	requirements of the Student Loan Bill of Rights Act as
474	474	determined by the director; and
475	475	(9) if the applicant is:
476	476	(a) an individual, the individual is in
477	477	all respects properly qualified and of good character;
478	478	(b) a partnership, the partnership is
479	479	registered to do business in New Mexico and is in good
480	480	standing, and each partner is in all respects properly
481	481	qualified and of good character;
482	482	(c) a corporation or an association, the
483	483	corporation or association is registered to do business in New
484	484	Mexico and is in good standing, and the following are in all
485	485	respects properly qualified and of good character: 1) the
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514	514	president; 2) the executive committee chair; 3) the senior
515	515	officer responsible for the corporation's business; 4) the
516	516	chief financial officer; 5) any other person who performs
517	517	functions similar to those described in Items 1) through 4) of
518	518	this subparagraph and as determined by the director; and 6)
519	519	each director, each trustee and each shareholder owning ten
520	520	percent or more of each class of the securities of the
521	521	corporation or association; or
522	522	(d) a limited liability company, the
523	523	limited liability company is registered to do business in New
524	524	Mexico and is in good standing, and each officer, manager or
525	525	member is in all respects properly qualified and of good
526	526	character.
527	527	SECTION 5. [NEW MATERIAL] AUTOMATIC ISSUANCE OF LICENSE
528	528	FOR FEDERAL STUDENT LOAN SERVICING CONTRACTORS.--
529	529	A. A person seeking to act as a student loan
530	530	servicer is excepted from the application procedures described
531	531	in Subsection A of Section 4 of the Student Loan Bill of Rights
532	532	Act upon a determination by the director that the person's
533	533	student loan servicing performed in this state is conducted
534	534	pursuant to a contract awarded by the United States secretary
535	535	of education pursuant to 20 U.S.C. Section 1087f. The director
536	536	shall prescribe the procedure to document eligibility for the
537	537	exception.
538	538	B. A person deemed excepted by the director
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567	567	pursuant to this section shall, upon payment of the fees
568	568	required by Section 4 of the Student Loan Bill of Rights Act,
569	569	automatically be issued a license by the director and shall be
570	570	considered by the director to have met all requirements set
571	571	forth in Subsection F of Section 4 of the Student Loan Bill of
572	572	Rights Act.
573	573	C. A person issued a license pursuant to this
574	574	section is exempt from Paragraphs (1) through (3) of Subsection
575	575	A, Subsection B and Subsection F of Section 4 of the Student
576	576	Loan Bill of Rights Act. A person licensed pursuant to this
577	577	section shall comply with the record retention requirements in
578	578	Section 8 of the Student Loan Bill of Rights Act except to the
579	579	extent that the requirements are inconsistent with federal law.
580	580	D. A person issued a license pursuant to this
581	581	section shall provide the director with written notice within
582	582	seven days following notification of the expiration, revocation
583	583	or termination of a contract awarded by the United States
584	584	secretary of education pursuant to 20 U.S.C. Section 1087f.
585	585	The person has thirty days following notification to satisfy
586	586	all requirements established under Subsection F of Section 4 of
587	587	the Student Loan Bill of Rights Act in order to continue to act
588	588	as a student loan servicer. At the expiration of the thirty-
589	589	day period, if the requirements have not been satisfied, the
590	590	director shall immediately suspend a license granted to the
591	591	person pursuant to this section.
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620	620	E. With respect to student loan servicing not
621	621	conducted pursuant to a contract awarded by the United States
622	622	secretary of education pursuant to 20 U.S.C. Section 1087f,
623	623	nothing in this section prevents the director from issuing or
624	624	filing a civil action for an order to temporarily or
625	625	permanently bar a person from acting as a student loan servicer
626	626	or violating applicable law.
627	627	SECTION 6. [NEW MATERIAL] LICENSE EXPIRATION--LICENSE
628	628	SURRENDER--LICENSE RENEWAL--LICENSE SUSPENSION--INFORMATION
629	629	UPDATE--LICENSE ABANDONMENT--NO ABATEMENT OF FEES.--
630	630	A. A license issued pursuant to the Student Loan
631	631	Bill of Rights Act shall expire at midnight on December 31 of
632	632	the year following its issuance, unless renewed or earlier
633	633	surrendered, suspended or revoked pursuant to the Student Loan
634	634	Bill of Rights Act.
635	635	B. Not later than fifteen days after a licensee
636	636	ceases to engage in the business of student loan servicing in
637	637	New Mexico for any reason, the licensee shall provide written
638	638	notice of surrender to the director and shall surrender to the
639	639	director its license for each location in which the licensee
640	640	has ceased to engage in the business of student loan servicing.
641	641	The written notice of surrender shall identify the location
642	642	where the records of the licensee will be stored and the name,
643	643	address and telephone number of an individual authorized to
644	644	provide access to the records. The surrender of a license does
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673	673	not reduce or eliminate the licensee's civil or criminal
674	674	liability arising from acts or omissions occurring prior to the
675	675	surrender of the license, including administrative actions by
676	676	the director to revoke or suspend a license, assess a civil
677	677	penalty, order restitution or exercise any other authority
678	678	provided to the director in the Student Loan Bill of Rights
679	679	Act.
680	680	C. A license may be renewed for the next twelve-
681	681	month period upon the filing of an application containing all
682	682	required documents and fees required by the Student Loan Bill
683	683	of Rights Act as for an initial license. The renewal
684	684	application shall be filed beginning on November 1 and before
685	685	December 31 of the year in which the license expires. A
686	686	renewal application filed with the director after December 31
687	687	of the year in which the license expires and before March 1 of
688	688	the following year, but that is accompanied by a one-hundred-
689	689	dollar ($100) late fee, shall be deemed to be timely. If an
690	690	application for a renewal license has been filed with the
691	691	director on or before the date the license expires, the license
692	692	sought to be renewed shall continue in full force and effect
693	693	until the director issues the renewed license or the director
694	694	has notified the licensee in writing of the director's refusal
695	695	to renew the license, including the grounds for the refusal.
696	696	The director may refuse to renew a license on any ground upon
697	697	which the director may refuse to issue an initial license.
698	698	.229696.2
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726	726	D. If the director determines that a check filed
727	727	with the director to pay a renewal fee has been dishonored, the
728	728	director shall automatically suspend the license. The director
729	729	immediately shall give the licensee notice of the automatic
730	730	suspension by any practicable means and initiate proceedings
731	731	for revocation or refusal to renew and an opportunity for a
732	732	hearing on that action pursuant to the Uniform Licensing Act.
733	733	E. The applicant or licensee shall notify the
734	734	director, in writing, of any change in the information provided
735	735	in its initial application for a license or its most recent
736	736	renewal application for that license, as applicable, not later
737	737	than ten business days after the occurrence of the event that
738	738	results in that information becoming inaccurate.
739	739	F. The director shall deem an application for a
740	740	license abandoned if the applicant fails to respond to a
741	741	request for information required by the Student Loan Bill of
742	742	Rights Act. The director shall notify the applicant, in
743	743	writing, that if the applicant fails to submit that information
744	744	not later than sixty days after the date on which that request
745	745	for information was made, the application shall be deemed
746	746	abandoned. An application filing fee paid before the date an
747	747	application is deemed abandoned pursuant to this subsection
748	748	shall not be refunded. Abandonment of an application does not
749	749	preclude the applicant from submitting a new application for a
750	750	license pursuant to the Student Loan Bill of Rights Act.
751	751	.229696.2
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779	779	G. A license fee paid pursuant to the Student Loan
780	780	Bill of Rights Act shall not be abated.
781	781	SECTION 7. [NEW MATERIAL] LICENSEE NAMES AND LOCATIONS--
782	782	TRANSFERABILITY--ASSIGNABILITY.--
783	783	A. A licensed student loan servicer shall not
784	784	service student education loans under a name or at a place of
785	785	business other than as listed in the license. A change of a
786	786	place of business shall require prior written notice to the
787	787	director. Not more than one place of business shall be
788	788	maintained under the same license, but the director may issue
789	789	more than one license to the same licensee that is in
790	790	compliance with the provisions of the Student Loan Bill of
791	791	Rights Act.
792	792	B. A license for a student loan servicer is not
793	793	transferable or assignable.
794	794	SECTION 8. [NEW MATERIAL] RECORD RETENTION.--
795	795	A. All private education lenders and student loan
796	796	servicers shall maintain adequate records of each student
797	797	education loan transaction for at least six years following the
798	798	final payment on a student education loan or the assignment of
799	799	a student education loan, whichever occurs first, or a longer
800	800	period the director may require.
801	801	B. Within five business days of receipt of a
802	802	request for student education loan records from the director, a
803	803	private education lender or student loan servicer shall make
804	804	.229696.2
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832	832	the records available to the director or shall send the records
833	833	to the director by registered or certified mail, return receipt
834	834	requested or by any express delivery carrier that provides a
835	835	dated delivery receipt. Upon request, the director may grant a
836	836	licensee additional time to make the records available or send
837	837	the records to the director.
838	838	SECTION 9. [NEW MATERIAL] STUDENT LOAN SERVICERS.--Except
839	839	as otherwise provided in federal law, a federal student
840	840	education loan agreement or a contract between the federal
841	841	government and a student loan servicer, a student loan servicer
842	842	shall comply with the following requirements:
843	843	A. upon receipt of a written inquiry from a student
844	844	loan borrower or the representative of a student loan borrower,
845	845	a student loan servicer shall respond by:
846	846	(1) acknowledging receipt of the written
847	847	inquiry within ten days; and
848	848	(2) within thirty days after receiving the
849	849	inquiry, providing information relating to the inquiry and, if
850	850	applicable, the action the student loan servicer will take to
851	851	correct the student loan borrower's account or an explanation
852	852	of the student loan servicer's position that the borrower's
853	853	account is correct, including copies of all information and
854	854	account information used by the student loan servicer in
855	855	reaching the determination;
856	856	B. a student loan servicer shall inquire of a
857	857	.229696.2
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885	885	student loan borrower how to apply an overpayment or prepayment
886	886	to a student education loan. A student loan borrower's
887	887	direction on how to apply an overpayment or prepayment to a
888	888	student education loan shall stay in effect for any future
889	889	overpayments or prepayments during the term of a student
890	890	education loan until the borrower provides different
891	891	directions. For purposes of this subsection, "overpayment" or
892	892	"prepayment" means a payment on a student education loan in
893	893	excess of the monthly amount due from a borrower on a student
894	894	education loan;
895	895	C. in the absence of a direction provided by a
896	896	student loan borrower pursuant to Subsection B of this section,
897	897	a student loan servicer shall allocate an overpayment on a
898	898	student loan account in a manner that is in the best financial
899	899	interest of a student loan borrower. A student loan servicer
900	900	shall be considered to meet the requirements of this subsection
901	901	if the servicer allocates the overpayment to the loan with the
902	902	highest interest rate on the borrower's student loan account,
903	903	unless the borrower specifies otherwise. For the purposes of
904	904	this subsection, "best financial interest of a student loan
905	905	borrower" means reducing the total cost of the student loan,
906	906	including principal and balance, interest and fees;
907	907	D. in the absence of a direction provided by a
908	908	student loan borrower pursuant to Subsection B of this section,
909	909	a student loan servicer shall apply a partial payment or
910	910	.229696.2
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938	938	underpayment in a manner that minimizes late fees and negative
939	939	credit reporting. When loans on a student loan borrower's
940	940	account have an equal stage of delinquency, a student loan
941	941	servicer shall apply a partial payment or underpayment to
942	942	satisfy as many individual loan payments as possible on a
943	943	borrower's account. For purposes of this subsection, "partial
944	944	payment" or "underpayment" means a payment on a student
945	945	education loan account that contains multiple individual loans
946	946	in an amount less than the amount necessary to satisfy the
947	947	outstanding payment due on all loans in the student education
948	948	loan account;
949	949	E. as a condition of the sale, assignment or
950	950	transfer, the student loan servicer shall require the new
951	951	student loan servicer to honor all benefits originally
952	952	represented as available to the student loan borrower during
953	953	the repayment of the student education loan and preserve the
954	954	availability of those benefits, including benefits for which
955	955	the student loan borrower has not yet qualified. If a student
956	956	loan servicer is not also the loan holder or is not acting on
957	957	behalf of the loan holder, the student loan servicer satisfies
958	958	the requirement established by this subsection by providing the
959	959	new student loan servicer with information necessary for the
960	960	new student loan servicer to honor all benefits originally
961	961	represented as available to a student loan borrower during the
962	962	repayment of the student education loan and preserve the
963	963	.229696.2
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991	991	availability of those benefits, including benefits for which
992	992	the student loan borrower has not yet qualified, and:
993	993	(1) the student loan servicer shall transfer
994	994	to the new student loan servicer all information regarding the
995	995	student loan borrower, the account of the student loan borrower
996	996	and the student education loan of the student loan borrower,
997	997	including the repayment status of the student loan borrower and
998	998	any benefits associated with the student education loan of the
999	999	student loan borrower;
1000	1000	(2) the sale, assignment or transfer of the
1001	1001	servicing of the student education loan shall be completed
1002	1002	within forty-five days after the sale, assignment or other
1003	1003	transfer of the servicing of a student education loan; and
1004	1004	(3) the parties shall notify affected student
1005	1005	loan borrowers of the sale, assignment or other transfer of the
1006	1006	servicing of the student education loan at least seven days
1007	1007	before the next payment on the loan is due. This notice shall
1008	1008	include:
1009	1009	(a) the identity of the new student loan
1010	1010	servicer;
1011	1011	(b) the effective date of the transfer
1012	1012	of the student loan borrower's student education loan to the
1013	1013	new student loan servicer;
1014	1014	(c) the date on which the existing
1015	1015	student loan servicer will no longer accept payments; and
1016	1016	.229696.2
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1044	1044	(d) the contact information for the new
1045	1045	student loan servicer;
1046	1046	F. a student loan servicer that obtains the right
1047	1047	to service a student education loan shall adopt policies and
1048	1048	procedures to verify that the student loan servicer has
1049	1049	received all information regarding the student loan borrower,
1050	1050	the account of the student loan borrower and the student
1051	1051	education loan of the student loan borrower, including the
1052	1052	repayment status of the student loan borrower and any benefits
1053	1053	associated with the student education loan of the student loan
1054	1054	borrower. The director may investigate these policies and
1055	1055	procedures; and
1056	1056	G. a student loan servicer shall inform the student
1057	1057	loan borrower about the availability of a repayment program
1058	1058	based on income prior to placing the borrower in forbearance or
1059	1059	default, if a repayment program based on income is available to
1060	1060	the borrower.
1061	1061	SECTION 10. [NEW MATERIAL] STUDENT LOAN SERVICERS--
1062	1062	PROHIBITED ACTS--UNFAIR TRADE PRACTICE--LIABILITY.--
1063	1063	A. A student loan servicer shall not:
1064	1064	(1) directly or indirectly employ a scheme,
1065	1065	device or artifice to defraud or mislead a student loan
1066	1066	borrower;
1067	1067	(2) engage in an unfair or deceptive trade
1068	1068	practice or unconscionable trade practice toward a person or
1069	1069	.229696.2
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1097	1097	misrepresent or omit material information in connection with
1098	1098	the servicing of a student education loan, including
1099	1099	misrepresenting the amount, nature or terms of a fee or payment
1100	1100	due or claimed to be due on a student education loan, the terms
1101	1101	and conditions of the loan agreement or the student loan
1102	1102	borrower's obligations under the loan;
1103	1103	(3) engage in abusive acts or practices when
1104	1104	servicing a student education loan. An abusive act or practice
1105	1105	includes:
1106	1106	(a) material interference with the
1107	1107	ability of a student loan borrower to understand a term or
1108	1108	condition of a student education loan; or
1109	1109	(b) taking unreasonable advantage of any
1110	1110	of the following: 1) a lack of understanding on the part of a
1111	1111	student loan borrower of the material risks, costs or
1112	1112	conditions of the student education loan; 2) the inability of a
1113	1113	student loan borrower to protect the borrower's interests when
1114	1114	selecting or using a student education loan or a feature, term
1115	1115	or condition of a student education loan; or 3) the reasonable
1116	1116	reliance by the student loan borrower on a person engaged in
1117	1117	servicing a student education loan to act in the interests of
1118	1118	the borrower;
1119	1119	(4) obtain property by fraud or
1120	1120	misrepresentation;
1121	1121	(5) misapply student education loan payments
1122	1122	.229696.2
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1150	1150	to the outstanding balance of a student education loan;
1151	1151	(6) provide inaccurate information to a credit
1152	1152	bureau;
1153	1153	(7) fail to report a favorable or unfavorable
1154	1154	payment history of a student loan borrower to a nationally
1155	1155	recognized consumer credit bureau at least annually if the
1156	1156	student loan servicer regularly reports information to a credit
1157	1157	bureau;
1158	1158	(8) refuse to communicate with an authorized
1159	1159	representative of a student loan borrower who provides a
1160	1160	written authorization signed by the student loan borrower;
1161	1161	provided that the student loan servicer may adopt procedures
1162	1162	reasonably related to verifying that the representative is
1163	1163	authorized to act on behalf of the student loan borrower;
1164	1164	(9) negligently make a false statement or
1165	1165	knowingly and willfully make an omission of a material fact in
1166	1166	connection with any information or report filed with a
1167	1167	governmental agency or in connection with an investigation
1168	1168	conducted by the director or another governmental agency;
1169	1169	(10) fail to properly evaluate a student loan
1170	1170	borrower for an income-driven or other student loan repayment
1171	1171	program or for eligibility for a public service loan
1172	1172	forgiveness program before placing the student loan borrower in
1173	1173	forbearance or default if an income-driven repayment or other
1174	1174	program is available to the student loan borrower except as
1175	1175	.229696.2
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1203	1203	otherwise provided in federal law, federal student loan
1204	1204	agreements or a contract between the federal government and a
1205	1205	student loan servicer;
1206	1206	(11) fail to respond within fifteen days to
1207	1207	communication from the student loan ombud, or within a shorter
1208	1208	reasonable time as the student loan ombud may request in the
1209	1209	communication; or
1210	1210	(12) fail to respond within fifteen days to a
1211	1211	student loan borrower complaint submitted to the servicer by
1212	1212	the student loan ombud. If necessary, a student loan servicer
1213	1213	may request additional time, up to forty-five days, as long as
1214	1214	the request is accompanied by an explanation of why additional
1215	1215	time is reasonable and necessary.
1216	1216	B. A violation of this section is an unfair or
1217	1217	deceptive trade practice or an unconscionable trade practice
1218	1218	pursuant to the Unfair Practices Act and is subject to the
1219	1219	enforcement and penalty provisions contained in that act.
1220	1220	SECTION 11. [NEW MATERIAL] DISABILITY DISCHARGE.--
1221	1221	A. For a private education loan issued or executed
1222	1222	on or after the effective date of the Student Loan Bill of
1223	1223	Rights Act, a private education lender or student loan servicer
1224	1224	acting on behalf of a private education lender, when notified
1225	1225	of the total and permanent disability of a student loan
1226	1226	borrower or cosigner, shall release any cosigner from the
1227	1227	obligations under a private education loan. The lender shall
1228	1228	.229696.2
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1256	1256	not attempt to collect a payment from a cosigner upon notice of
1257	1257	total and permanent disability of the cosigner or borrower.
1258	1258	B. A lender shall notify a student loan borrower
1259	1259	and cosigner for a private education loan if either the
1260	1260	cosigner or borrower is released from the obligations of the
1261	1261	private education loan under this section within thirty days of
1262	1262	the release.
1263	1263	C. Any lender that extends a private education loan
1264	1264	shall provide the student loan borrower an option to designate
1265	1265	an individual to have the legal authority to act on behalf of
1266	1266	the borrower with respect to the private education loan in the
1267	1267	event of the total and permanent disability of the borrower.
1268	1268	D. In the event a cosigner is released from the
1269	1269	obligations of a private education loan pursuant to Subsection
1270	1270	A of this section, the lender shall not require the student
1271	1271	loan borrower to obtain another cosigner on the loan
1272	1272	obligation.
1273	1273	E. In the event a cosigner is released from the
1274	1274	obligations of a private education loan pursuant to Subsection
1275	1275	A of this section, a lender shall not declare a default or
1276	1276	accelerate the debt against the student loan borrower on the
1277	1277	sole basis of the release of the cosigner from the loan
1278	1278	obligation.
1279	1279	F. A lender shall, when notified of the total and
1280	1280	permanent disability of a student loan borrower, discharge the
1281	1281	.229696.2
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1309	1309	liability of the borrower and cosigner on the loan.
1310	1310	G. After receiving a notification described in
1311	1311	Subsection F of this section, the lender shall not attempt to
1312	1312	collect on the outstanding liability of the student loan
1313	1313	borrower or cosigner or monitor the disability status of the
1314	1314	borrower at any point after the date of discharge.
1315	1315	SECTION 12. [NEW MATERIAL] AVAILABILITY OF ALTERNATIVE
1316	1316	REPAYMENT OPTIONS.--
1317	1317	A. If a private education lender offers any student
1318	1318	loan borrower flexible or modified repayment options in
1319	1319	connection with a private education loan, those flexible
1320	1320	repayment options shall be made available to all borrowers of
1321	1321	loans by the lender. A lender shall:
1322	1322	(1) provide on its website a description of
1323	1323	any alternative repayment options offered by the lender for
1324	1324	private education loans; and
1325	1325	(2) establish policies and procedures and
1326	1326	implement them consistently in order to facilitate evaluation
1327	1327	of private education loan flexible repayment option requests,
1328	1328	including providing accurate information regarding any private
1329	1329	education loan alternative repayment options that may be
1330	1330	available to the student loan borrower through the promissory
1331	1331	note or that may have been marketed to the borrower through
1332	1332	marketing materials.
1333	1333	B. A private education lender or a student loan
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1362	1362	servicer acting on behalf of a private education lender shall
1363	1363	consistently present and offer flexible or modified private
1364	1364	education loan repayment options to student loan borrowers with
1365	1365	similar financial circumstances if the lender offers such
1366	1366	repayment options.
1367	1367	SECTION 13. [NEW MATERIAL] NOTICES REQUIRED AT
1368	1368	ORIGINATION.--
1369	1369	A. Prior to the extension of a private education
1370	1370	loan that requires a cosigner, a private education lender shall
1371	1371	deliver the following information to the cosigner:
1372	1372	(1) how the private education loan obligation
1373	1373	shall appear on the cosigner's credit;
1374	1374	(2) how the cosigner shall be notified if the
1375	1375	private education loan becomes delinquent, including how the
1376	1376	cosigner can cure the delinquency in order to avoid negative
1377	1377	credit furnishing and loss of cosigner release eligibility; and
1378	1378	(3) eligibility for release of the cosigner's
1379	1379	obligation on the private education loan, including the number
1380	1380	of on-time payments and any other criteria required to approve
1381	1381	the release of the cosigner from the loan obligation.
1382	1382	B. Prior to offering a person a private education
1383	1383	loan that is being used to refinance an existing education
1384	1384	loan, a private education lender shall provide the person a
1385	1385	disclosure that benefits and protections applicable to the
1386	1386	existing loan may be lost due to the refinancing.
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1415	1415	C. The information provided pursuant to this
1416	1416	section shall be provided on a one-page information sheet in a
1417	1417	twelve-point font and shall be written in simple, clear,
1418	1418	understandable and easily readable language as provided in
1419	1419	P.L.1980, c.125 (C.56:12-1 et seq.).
1420	1420	SECTION 14. [NEW MATERIAL] COSIGNER RELEASE.--
1421	1421	A. For any private education loan that obligates a
1422	1422	cosigner, a lender shall provide the student loan borrower and
1423	1423	the cosigner an annual written notice containing information
1424	1424	about cosigner release, including the administrative,
1425	1425	nonjudgmental criteria the lender requires to approve the
1426	1426	release of the cosigner from the loan obligation and the
1427	1427	process for applying for cosigner release.
1428	1428	B. If the student loan borrower has met the
1429	1429	applicable payment requirement to be eligible for cosigner
1430	1430	release, the lender shall send the borrower and the cosigner a
1431	1431	written notification by mail and by electronic mail, where a
1432	1432	borrower or cosigner has elected to receive electronic
1433	1433	communications from the lender, informing the borrower and
1434	1434	cosigner that the payment requirement to be eligible for
1435	1435	cosigner release has been met. The notification shall also
1436	1436	include information about any additional criteria to qualify
1437	1437	for cosigner release and the procedure to apply for cosigner
1438	1438	release.
1439	1439	C. A lender shall provide written notice to a
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1468	1468	student loan borrower who applies for cosigner release but
1469	1469	whose application is incomplete. The written notice shall
1470	1470	include a description of the information needed to consider the
1471	1471	application complete and the date by which the applicant shall
1472	1472	furnish the missing information.
1473	1473	D. Within thirty days after a student loan borrower
1474	1474	submits a completed application for cosigner release, the
1475	1475	lender shall send the borrower and cosigner a written notice
1476	1476	that informs the borrower and cosigner whether the cosigner
1477	1477	release application has been approved or denied. If the lender
1478	1478	denies a request for cosigner release, the student loan
1479	1479	borrower may request any documents or information used in the
1480	1480	determination, including the credit score threshold used by the
1481	1481	lender, the borrower's consumer report, the borrower's credit
1482	1482	score and any other documents specific to the borrower. The
1483	1483	lender shall also provide any adverse action notices required
1484	1484	under applicable federal law if the denial is based in whole or
1485	1485	in part on any information contained in a consumer report.
1486	1486	E. In response to a written or oral request for
1487	1487	cosigner release, a lender shall provide the information
1488	1488	described in Subsection B of this section.
1489	1489	F. A lender shall not impose any restriction that
1490	1490	permanently bars a student loan borrower from qualifying for
1491	1491	cosigner release, including restricting the number of times a
1492	1492	borrower may apply for cosigner release.
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1521	1521	G. A lender shall not impose any negative
1522	1522	consequences on any student loan borrower or cosigner during
1523	1523	the sixty days following the issuance of the notice required
1524	1524	pursuant to Subsection C of this section, or until the lender
1525	1525	makes a final determination about a borrower's cosigner release
1526	1526	application. For the purpose of this subsection, "negative
1527	1527	consequences" includes the imposition of additional eligibility
1528	1528	criteria, negative credit reporting, lost eligibility for
1529	1529	cosigner release, late fees, interest capitalization or other
1530	1530	financial injury.
1531	1531	H. For a private education loan issued or executed
1532	1532	on or after the effective date of the Student Loan Bill of
1533	1533	Rights Act, a lender shall not require more than twelve
1534	1534	consecutive on-time payments as criteria for cosigner release.
1535	1535	Any student loan borrower who has paid the equivalent of twelve
1536	1536	months of principal and interest payments within any twelve-
1537	1537	month period shall be considered to have satisfied the
1538	1538	consecutive on-time payment requirement, even if the borrower
1539	1539	has not made payments monthly during the twelve-month period.
1540	1540	I. If a student loan borrower or cosigner requests
1541	1541	a change in terms that restarts the count of consecutive on-
1542	1542	time payments required for cosigner release, the lender shall
1543	1543	notify the borrower and cosigner in writing of the impact of
1544	1544	the change and provide the borrower or cosigner the right to
1545	1545	withdraw or reverse the request to avoid that impact.
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1574	1574	J. A student loan borrower shall have the right to
1575	1575	request an appeal of a lender's determination to deny a request
1576	1576	for cosigner release, and the lender shall permit the borrower
1577	1577	to submit additional documentation evidencing the borrower's
1578	1578	ability, willingness and stability to meet the payment
1579	1579	obligations. The student loan borrower may request review of
1580	1580	the cosigner release determination by another employee.
1581	1581	K. A lender shall establish and maintain a
1582	1582	comprehensive record management system reasonably designed to
1583	1583	ensure the accuracy, integrity and completeness of data and
1584	1584	other information about cosigner release applications and to
1585	1585	ensure compliance with applicable state and federal laws,
1586	1586	including the federal Equal Credit Opportunity Act and the
1587	1587	federal Fair Credit Reporting Act. This system shall include
1588	1588	the number of cosigner release applications received, the
1589	1589	approval and denial rate and the primary reasons for any
1590	1590	denial.
1591	1591	SECTION 15. [NEW MATERIAL] INFORMATION AVAILABLE TO
1592	1592	COSIGNERS.--
1593	1593	A. A lender shall provide a cosigner with access to
1594	1594	all documents or records related to the cosigned private
1595	1595	education loan that are available to the student loan borrower.
1596	1596	B. If a lender provides electronic access to
1597	1597	documents and records for a student loan borrower, the lender
1598	1598	shall provide equivalent electronic access to the cosigner.
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1627	1627	C. Upon written notice from the student loan
1628	1628	borrower or cosigner, the lender shall redact or withhold
1629	1629	contact information for the borrower and cosigner.
1630	1630	SECTION 16. [NEW MATERIAL] PROHIBITIONS ON THE
1631	1631	ACCELERATION OF PRIVATE EDUCATION LOANS.--
1632	1632	A. A private education loan executed on or after
1633	1633	the effective date of the Student Loan Bill of Rights Act shall
1634	1634	not include a provision that permits the private education
1635	1635	lender to accelerate, in whole or in part, payments on the
1636	1636	private education loan, except in cases of payment default. A
1637	1637	lender shall not place any loan or account into default or
1638	1638	accelerate a loan for any reason, other than for payment
1639	1639	default.
1640	1640	B. A private education loan executed prior to the
1641	1641	effective date of the Student Loan Bill of Rights Act shall
1642	1642	permit the lender to accelerate payments only if the promissory
1643	1643	note or loan agreement explicitly authorizes an acceleration
1644	1644	and only for the reasons stated in the note or agreement.
1645	1645	C. In the event of the death of a cosigner, the
1646	1646	lender shall not attempt to collect against the cosigner's
1647	1647	estate, other than for payment default.
1648	1648	D. Upon receiving notification of the death or
1649	1649	bankruptcy of a cosigner, when the private education loan is
1650	1650	not more than sixty days delinquent at the time of the
1651	1651	notification, the lender shall not change any terms or benefits
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1680	1680	under the promissory note, repayment schedule, repayment terms
1681	1681	or monthly payment amount or any other provision associated
1682	1682	with the private education loan.
1683	1683	E. A lender shall not place any private loan or
1684	1684	account into default or accelerate a private loan while a
1685	1685	borrower is seeking a private loan modification or enrollment
1686	1686	in a flexible repayment plan, except that a lender may place a
1687	1687	private loan or account into default or accelerate a private
1688	1688	loan for payment default ninety days following the student loan
1689	1689	borrower's default.
1690	1690	SECTION 17. [NEW MATERIAL] PRIVATE EDUCATION LENDERS--
1691	1691	PROHIBITED ACTS.--
1692	1692	A. A private education lender shall not:
1693	1693	(1) offer any private education loan that is
1694	1694	not in conformity with the Student Loan Bill of Rights Act or
1695	1695	that is in violation of any other state or federal law;
1696	1696	(2) make a private education loan upon
1697	1697	security of any assignment of or order for the payment of any
1698	1698	salary, wages, commissions or other compensation for services
1699	1699	earned or to be earned. No assignment or order shall be taken
1700	1700	by a lender in connection with a private education loan, or for
1701	1701	the enforcement or repayment thereof, and any assignment or
1702	1702	order taken or given to secure any loan made by any lender
1703	1703	under the Student Loan Bill of Rights Act shall be void;
1704	1704	(3) directly or indirectly employ a scheme,
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1733	1733	device or artifice to defraud or mislead a student loan
1734	1734	borrower or cosigner;
1735	1735	(4) engage in an unfair or deceptive trade
1736	1736	practice or unconscionable trade practice toward a person or
1737	1737	misrepresent or omit material information in connection with
1738	1738	the lending or servicing of a private education loan, including
1739	1739	misrepresenting the amount, nature or terms of a fee or payment
1740	1740	due or claimed to be due on a private education loan, the terms
1741	1741	and conditions of the loan agreement or the student loan
1742	1742	borrower's or cosigner's obligations under the loan;
1743	1743	(5) engage in abusive acts or practices when
1744	1744	lending or servicing a private education loan. An abusive act
1745	1745	or practice includes:
1746	1746	(a) material interference with the
1747	1747	ability of a student loan borrower or cosigner to understand a
1748	1748	term or condition of a private education loan; or
1749	1749	(b) taking unreasonable advantage of any
1750	1750	of the following: a lack of understanding on the part of a
1751	1751	student loan borrower or cosigner of the material risks, costs
1752	1752	or conditions of the private education loan; the inability of a
1753	1753	student loan borrower or cosigner to protect the borrower's or
1754	1754	cosigner's interests when selecting or using a private
1755	1755	education loan or a feature, term or condition of a private
1756	1756	education loan; or the reasonable reliance by the student loan
1757	1757	borrower or cosigner on a person engaged in lending or
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1786	1786	servicing a private education loan to act in the interests of
1787	1787	the borrower or cosigner;
1788	1788	(6) obtain property by fraud or
1789	1789	misrepresentation;
1790	1790	(7) misapply private education loan payments
1791	1791	to the outstanding balance of a student education loan;
1792	1792	(8) provide inaccurate information to a credit
1793	1793	bureau;
1794	1794	(9) fail to report a favorable or unfavorable
1795	1795	payment history of a student loan borrower or cosigner to a
1796	1796	nationally recognized consumer credit bureau at least annually
1797	1797	if the private education lender regularly reports information
1798	1798	to a credit bureau;
1799	1799	(10) refuse to communicate with an authorized
1800	1800	representative of a student loan borrower or cosigner who
1801	1801	provides a written authorization signed by the student loan
1802	1802	borrower; provided that the private education lender may adopt
1803	1803	procedures reasonably related to verifying that the
1804	1804	representative is authorized to act on behalf of the student
1805	1805	loan borrower;
1806	1806	(11) negligently make a false statement or
1807	1807	knowingly and willfully make an omission of a material fact in
1808	1808	connection with any information or report filed with a
1809	1809	governmental agency or in connection with an investigation
1810	1810	conducted by the director or another governmental agency;
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1839	1839	(12) fail to respond within fifteen days to
1840	1840	communication from the student loan ombud, or within a shorter
1841	1841	reasonable time as the student loan ombud may request in the
1842	1842	communication; or
1843	1843	(13) fail to respond within fifteen days to a
1844	1844	student loan borrower or cosigner complaint submitted to the
1845	1845	lender by the student loan ombud. If necessary, a private
1846	1846	education lender may request additional time, up to forty-five
1847	1847	days, as long as the request is accompanied by an explanation
1848	1848	of why additional time is reasonable and necessary.
1849	1849	B. A violation of this section is an unfair or
1850	1850	deceptive trade practice or an unconscionable trade practice
1851	1851	pursuant to the Unfair Practices Act and is subject to the
1852	1852	enforcement and penalty provisions contained in that act.
1853	1853	SECTION 18. [NEW MATERIAL] MARKET MONITORING.--
1854	1854	A. The director may monitor for risks to consumers
1855	1855	in the provision of student loan servicing and student
1856	1856	education loans, including private education loans in New
1857	1857	Mexico and developments in the market for those services, by
1858	1858	compiling and analyzing data and other information based on any
1859	1859	of the following considerations:
1860	1860	(1) the likely risks and costs to consumers
1861	1861	associated with using or repaying a student education loan or
1862	1862	with the servicing of a student education loan;
1863	1863	(2) the understanding by consumers of the
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1892	1892	risks of a student education loan or the servicing of a student
1893	1893	education loan;
1894	1894	(3) the legal protections applicable to the
1895	1895	offering or provision of a student education loan or the
1896	1896	servicing of a student education loan, including the extent to
1897	1897	which the law is likely to adequately protect consumers;
1898	1898	(4) the rates of growth in the offering or
1899	1899	provision of a student education loan or the servicing of that
1900	1900	loan;
1901	1901	(5) the extent, if any, to which the risks of
1902	1902	a student education loan or the servicing of a student
1903	1903	education loan disproportionately affect traditionally
1904	1904	underserved consumers; and
1905	1905	(6) the type, number and other pertinent
1906	1906	characteristics of private education lenders and student loan
1907	1907	servicers in New Mexico.
1908	1908	B. In conducting monitoring or assessment
1909	1909	authorized by this section, the director may gather information
1910	1910	regarding the organization, business conduct, markets and
1911	1911	activities of private education lenders and student loan
1912	1912	servicers in New Mexico, except if that private education
1913	1913	lender or student loan servicer is a national bank as defined
1914	1914	in 12 U.S.C. Section 25b, and only to the extent that the
1915	1915	requirements of this subsection are preempted with respect to
1916	1916	national banks pursuant to 12 U.S.C. Section 25B, et seq. The
1917	1917	.229696.2
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1945	1945	director may enter into contracts to perform the duties
1946	1946	required by this section, as necessary.
1947	1947	C. In order to gather information described in
1948	1948	Subsection B of this section, the director may do the
1949	1949	following:
1950	1950	(1) gather and compile information from a
1951	1951	variety of sources, including consumer complaints, voluntary
1952	1952	surveys and voluntary interviews of consumers, surveys and
1953	1953	interviews with private education lenders and student loan
1954	1954	servicers and service providers, and review of available
1955	1955	databases; and
1956	1956	(2) require persons engaged in private
1957	1957	education lending or student loan servicing and subject to the
1958	1958	Student Loan Bill of Rights Act to file, under oath or
1959	1959	otherwise, in the form and within a reasonable period of time
1960	1960	as the director may prescribe, annual or special reports, or
1961	1961	answers in writing to specific questions, as necessary for the
1962	1962	director to fulfill the monitoring, assessment and reporting
1963	1963	responsibilities set forth in this section.
1964	1964	D. In addition to any other market monitoring
1965	1965	activities deemed necessary by the director pursuant to
1966	1966	Subsection A of this section, the division may gather and
1967	1967	compile information from private education lenders and student
1968	1968	loan servicers to assemble data that assesses the total size of
1969	1969	the student loan market in New Mexico, the servicing of loans
1970	1970	.229696.2
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1972	1972	[bracketed material] = delete
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1993	1993	21
1994	1994	22
1995	1995	23
1996	1996	24
1997	1997	25
1998	1998	owed by borrowers at risk of default, the servicing of private
1999	1999	education loans owed by borrowers experiencing financial
2000	2000	distress and the servicing of federal student education loans
2001	2001	for borrowers who seek to repay their loans under an income-
2002	2002	driven repayment plan as described in Section 1070 et seq. of
2003	2003	Title 20 of the United States Code.
2004	2004	E. The director may, on a quarterly basis, develop
2005	2005	and publicize metrics based on data collected pursuant to this
2006	2006	section, and those metrics may identify each private education
2007	2007	lender and student loan servicer and publish relevant metrics
2008	2008	related to performance of each such persons. In executing the
2009	2009	function described in this section, the director may meet and
2010	2010	confer with the student loan ombud, the state department of
2011	2011	justice and the higher education department.
2012	2012	F. To fulfill the monitoring and assessment
2013	2013	authorized by this section and to carry out the purposes of
2014	2014	this section, the director may:
2015	2015	(1) retain attorneys, accountants or other
2016	2016	professionals;
2017	2017	(2) enter into agreements or relationships
2018	2018	with other government officials or regulatory associations to
2019	2019	improve efficiencies and reduce regulatory burden by sharing
2020	2020	resources, standardized or uniform methods or procedures and
2021	2021	documents, records, information or evidence obtained pursuant
2022	2022	to this section;
2023	2023	.229696.2
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2025	2025	[bracketed material] = delete
2026	2026	1
2027	2027	2
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2045	2045	20
2046	2046	21
2047	2047	22
2048	2048	23
2049	2049	24
2050	2050	25
2051	2051	(3) use, hire, contract or employ public or
2052	2052	privately available analytical systems, methods or software;
2053	2053	(4) rely on examination or investigation
2054	2054	reports made by other government officials, whether in or
2055	2055	outside of New Mexico; and
2056	2056	(5) accept audit reportings made by an
2057	2057	independent certified public accountant for the private
2058	2058	education lender, student loan servicer or person subject to
2059	2059	the Student Loan Bill of Rights Act.
2060	2060	SECTION 19. [NEW MATERIAL] POWERS OF THE DIRECTOR.--
2061	2061	A. The director may conduct investigations and
2062	2062	examinations for purposes of initial licensing, license
2063	2063	renewal, license suspension, license revocation or termination,
2064	2064	or for general or specific inquiry or investigation, to
2065	2065	determine compliance with the Student Loan Bill of Rights Act.
2066	2066	The director may access, receive and use any documents,
2067	2067	information or evidence the director deems relevant to the
2068	2068	inquiry or investigation regardless of the location,
2069	2069	possession, control or custody of those documents or that
2070	2070	information or evidence.
2071	2071	B. For the purposes of investigating violations or
2072	2072	complaints arising pursuant to the Student Loan Bill of Rights
2073	2073	Act or for the purposes of examination, the director may
2074	2074	review, investigate or examine the activities of any private
2075	2075	education lender or student loan servicer as often as necessary
2076	2076	.229696.2
2077	2077	- 39 - underscored material = new
2078	2078	[bracketed material] = delete
2079	2079	1
2080	2080	2
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2099	2099	21
2100	2100	22
2101	2101	23
2102	2102	24
2103	2103	25
2104	2104	to carry out the purposes of that act. The director may
2105	2105	direct, subpoena or order the attendance of and examine under
2106	2106	oath a person whose testimony may be required about the student
2107	2107	education loan or the business or subject matter of the
2108	2108	examination or investigation and may direct, subpoena or order
2109	2109	the person to produce books, accounts, records, files and any
2110	2110	other documents the director deems relevant to the inquiry.
2111	2111	C. In making an examination or investigation
2112	2112	authorized by the Student Loan Bill of Rights Act, the director
2113	2113	may control access to any documents or records of the student
2114	2114	loan servicer licensee or person under examination or
2115	2115	investigation related to the student education loan. The
2116	2116	director may take possession of the documents and records or
2117	2117	place a person in exclusive charge of the documents and records
2118	2118	in the place where the documents and records are usually kept.
2119	2119	During the period of control, a person shall not remove or
2120	2120	attempt to remove any of the documents and records except
2121	2121	pursuant to a court order or with the consent of the director.
2122	2122	Unless the director has reasonable grounds to believe the
2123	2123	documents or records of the student loan servicer licensee or
2124	2124	person have been, or are at risk of being, altered or destroyed
2125	2125	for purposes of concealing a violation of the Student Loan Bill
2126	2126	of Rights Act, the student loan servicer licensee or owner of
2127	2127	the documents and records shall have access to the documents or
2128	2128	records as necessary to conduct its ordinary business affairs.
2129	2129	.229696.2
2130	2130	- 40 - underscored material = new
2131	2131	[bracketed material] = delete
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2153	2153	22
2154	2154	23
2155	2155	24
2156	2156	25
2157	2157	Nothing in this subsection shall be construed as limiting the
2158	2158	student loan borrower's access to the borrower's own account
2159	2159	records.
2160	2160	D. To fulfill the duties imposed by this section
2161	2161	and to carry out the purposes of this section, the director
2162	2162	may:
2163	2163	(1) retain attorneys, accountants or other
2164	2164	professionals and specialists as examiners, auditors or
2165	2165	investigators to conduct or assist in the conduct of
2166	2166	examinations or investigations;
2167	2167	(2) enter into agreements or relationships
2168	2168	with other government officials or regulatory associations to
2169	2169	improve efficiencies and reduce regulatory burden by sharing
2170	2170	resources, standardized or uniform methods or procedures and
2171	2171	documents, records, information or evidence obtained pursuant
2172	2172	to this section;
2173	2173	(3) use, hire, contract or employ public or
2174	2174	privately available analytical systems, methods or software to
2175	2175	examine or investigate the student loan servicer, private
2176	2176	education lender or person subject to the Student Loan Bill of
2177	2177	Rights Act;
2178	2178	(4) rely on examination or investigation
2179	2179	reports made by other government officials, whether in or
2180	2180	outside of New Mexico; and
2181	2181	(5) accept audit reports made by an
2182	2182	.229696.2
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2184	2184	[bracketed material] = delete
2185	2185	1
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2206	2206	22
2207	2207	23
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2209	2209	25
2210	2210	independent certified public accountant for the student loan
2211	2211	servicer, private education lender or person subject to the
2212	2212	Student Loan Bill of Rights Act in the course of that part of
2213	2213	the examination covering the same general subject matter as the
2214	2214	audit and may incorporate the audit report in the report of
2215	2215	examination, report of investigation or other writing of the
2216	2216	director.
2217	2217	E. A student loan servicer, private education
2218	2218	lender or person subject to investigation or examination under
2219	2219	this section shall not knowingly withhold, abstract, remove,
2220	2220	mutilate, destroy or secrete any books, records, computer
2221	2221	records or other information.
2222	2222	F. The costs of an investigation or examination
2223	2223	conducted by the director shall be paid by the student loan
2224	2224	servicer, private education lender or person being
2225	2225	investigated. When it becomes necessary to examine or
2226	2226	investigate the books and records of a licensee under this
2227	2227	section at a location outside of New Mexico, the licensee shall
2228	2228	be liable for and shall pay to the division within thirty days
2229	2229	of the presentation of an itemized statement the actual travel
2230	2230	and reasonable living expenses incurred on account of its
2231	2231	examination, supervision and regulation or shall pay a
2232	2232	reasonable per diem rate approved by the director.
2233	2233	SECTION 20. [NEW MATERIAL] ENFORCEMENT BY DIRECTOR.--
2234	2234	A. To ensure the effective supervision and
2235	2235	.229696.2
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2237	2237	[bracketed material] = delete
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2239	2239	2
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2257	2257	20
2258	2258	21
2259	2259	22
2260	2260	23
2261	2261	24
2262	2262	25
2263	2263	enforcement of the Student Loan Bill of Rights Act and in
2264	2264	accordance with the procedures provided in the Uniform
2265	2265	Licensing Act, the director may:
2266	2266	(1) deny, suspend, revoke or decline to renew
2267	2267	a license for a violation of the Student Loan Bill of Rights
2268	2268	Act, rules issued pursuant to that act or an order or directive
2269	2269	entered pursuant to that act;
2270	2270	(2) deny, suspend, revoke or decline to renew
2271	2271	a license if an applicant or student loan servicer fails at any
2272	2272	time to meet the requirements of Subsection F of Section 4 of
2273	2273	the Student Loan Bill of Rights Act; and
2274	2274	(3) issue orders or directives as follows:
2275	2275	(a) order or direct student loan
2276	2276	servicers or private education lenders to cease and desist from
2277	2277	conducting business related to student education loans,
2278	2278	including issuing an immediate temporary order to cease and
2279	2279	desist;
2280	2280	(b) order or direct student loan
2281	2281	servicers or private education lenders to cease any violations
2282	2282	of the Student Loan Bill of Rights Act; and
2283	2283	(c) enter immediate temporary orders to
2284	2284	cease any business licensed pursuant to the Student Loan Bill
2285	2285	of Rights Act if the director determines that the license was
2286	2286	erroneously granted or the licensed student loan servicer is
2287	2287	currently in violation of that act.
2288	2288	.229696.2
2289	2289	- 43 - underscored material = new
2290	2290	[bracketed material] = delete
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2312	2312	22
2313	2313	23
2314	2314	24
2315	2315	25
2316	2316	B. The director may impose an administrative
2317	2317	penalty on a student loan servicer if the director finds, from
2318	2318	the record after notice and opportunity for a recorded hearing,
2319	2319	that the student loan servicer has violated or failed to comply
2320	2320	with any requirement of the Student Loan Bill of Rights Act or
2321	2321	any rule promulgated by the director pursuant to that act or
2322	2322	any order issued pursuant to that act. The maximum amount of
2323	2323	penalty for each act or omission shall be five thousand dollars
2324	2324	($5,000).
2325	2325	SECTION 21. [NEW MATERIAL] JUDICIAL ENFORCEMENT.--
2326	2326	A. Upon a showing by the director that a person has
2327	2327	violated, or is about to violate, the Student Loan Bill of
2328	2328	Rights Act or any rule or order of the director pursuant to
2329	2329	that act, the district court of the first judicial district or
2330	2330	the district court in the judicial district where the student
2331	2331	loan borrower or cosigner resides may grant or impose one or
2332	2332	more of the following:
2333	2333	(1) a temporary restraining order, permanent
2334	2334	or temporary prohibitory or mandatory injunction or a writ of
2335	2335	prohibition or mandamus;
2336	2336	(2) a civil penalty up to a maximum of five
2337	2337	thousand dollars ($5,000) for each violation;
2338	2338	(3) declaratory judgment;
2339	2339	(4) restitution to student loan borrowers or
2340	2340	cosigners;
2341	2341	.229696.2
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2343	2343	[bracketed material] = delete
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2364	2364	21
2365	2365	22
2366	2366	23
2367	2367	24
2368	2368	25
2369	2369	(5) recovery by the director of all costs and
2370	2370	expenses for conducting an investigation or the bringing of any
2371	2371	enforcement action pursuant to the Student Loan Bill of Rights
2372	2372	Act; or
2373	2373	(6) other relief as the court deems proper.
2374	2374	B. In determining the appropriate relief, the court
2375	2375	shall consider administrative enforcement actions taken and
2376	2376	imposed by the director pursuant to the Student Loan Bill of
2377	2377	Rights Act in connection with the transactions constituting
2378	2378	violations of that act.
2379	2379	C. The court shall not require the director to post
2380	2380	bond in an action pursuant to this section.
2381	2381	SECTION 22. [NEW MATERIAL] COMPLIANCE WITH FEDERAL LAW.--
2382	2382	A. A student loan servicer licensee shall comply
2383	2383	with all applicable federal laws and regulations relating to
2384	2384	student loan servicing. In addition to any other remedies
2385	2385	provided by law, a violation of an applicable federal law or
2386	2386	regulation is a violation of the Student Loan Bill of Rights
2387	2387	Act.
2388	2388	B. A private education lender shall comply with all
2389	2389	applicable federal laws and regulations relating to the lending
2390	2390	of servicing of private education loans. In addition to any
2391	2391	other remedies provided by law, a violation of an applicable
2392	2392	federal law or regulation is a violation of the Student Loan
2393	2393	Bill of Rights Act.
2394	2394	.229696.2
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2396	2396	[bracketed material] = delete
2397	2397	1
2398	2398	2
2399	2399	3
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2401	2401	5
2402	2402	6
2403	2403	7
2404	2404	8
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2415	2415	19
2416	2416	20
2417	2417	21
2418	2418	22
2419	2419	23
2420	2420	24
2421	2421	25
2422	2422	SECTION 23. [NEW MATERIAL] PROMULGATION OF RULES.--The
2423	2423	director may promulgate rules and make reasonable orders
2424	2424	necessary to implement the Student Loan Bill of Rights Act. A
2425	2425	copy of every rule and of every order containing requirements
2426	2426	of general application shall be mailed to each licensee not
2427	2427	less than fifteen days before the effective date of the rule or
2428	2428	order.
2429	2429	SECTION 24. [NEW MATERIAL] STUDENT LOAN OMBUD--DUTIES--
2430	2430	ANNUAL REPORT.--
2431	2431	A. The director shall designate a student loan
2432	2432	ombud within the division to provide timely assistance to
2433	2433	student loan borrowers.
2434	2434	B. The student loan ombud, in collaboration with
2435	2435	the state department of justice and the higher education
2436	2436	department, shall:
2437	2437	(1) receive, review and attempt to resolve
2438	2438	complaints from student loan borrowers;
2439	2439	(2) compile and analyze data regarding student
2440	2440	loan borrower complaints received by the ombud;
2441	2441	(3) assist student loan borrowers and
2442	2442	cosigners in understanding their rights and responsibilities
2443	2443	under the terms of student education loans;
2444	2444	(4) provide information to the public, state
2445	2445	agencies, state legislators and others regarding the problems
2446	2446	and concerns of student loan borrowers and make recommendations
2447	2447	.229696.2
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2449	2449	[bracketed material] = delete
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2471	2471	22
2472	2472	23
2473	2473	24
2474	2474	25
2475	2475	for resolving those problems and concerns;
2476	2476	(5) analyze and monitor the development and
2477	2477	implementation of federal laws, regulations and policies and
2478	2478	state laws, rules and policies relating to student loan
2479	2479	borrowers and make recommendations for any changes the ombud
2480	2480	deems necessary;
2481	2481	(6) review the complete student education loan
2482	2482	history for any student loan borrower who has provided written
2483	2483	consent for that review;
2484	2484	(7) disseminate information concerning the
2485	2485	availability of the student loan ombud to assist student loan
2486	2486	borrowers, cosigners, potential student loan borrowers,
2487	2487	potential cosigners, post-secondary educational institutions,
2488	2488	student loan servicers and other participants in student
2489	2489	education loan lending with student loan servicing concerns;
2490	2490	and
2491	2491	(8) take any other action the ombud deems
2492	2492	necessary to fulfill the duties of the student loan ombud.
2493	2493	C. The division, including the student loan ombud,
2494	2494	the state department of justice and the higher education
2495	2495	department, or their designees, shall meet at least once per
2496	2496	quarter to coordinate their efforts under Subsection B of this
2497	2497	section.
2498	2498	D. On or before July 1, 2026, the student loan
2499	2499	ombud, in collaboration with the state department of justice
2500	2500	.229696.2
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2528	2528	and the higher education department, shall establish and
2529	2529	maintain a student loan borrower education course that includes
2530	2530	educational presentations and materials regarding student
2531	2531	education loans. The student loan borrower education course
2532	2532	shall review key loan terms, documentation requirements,
2533	2533	monthly payment obligations, income-based repayment options,
2534	2534	loan forgiveness and disclosure requirements.
2535	2535	E. On or before December 1, 2027, and annually
2536	2536	thereafter, the director shall submit a report to the
2537	2537	appropriate legislative interim committee. Annual reports
2538	2538	shall be made available to interested parties and the general
2539	2539	public and published on the division's website and on the
2540	2540	sunshine portal. Consistent with state law, the report shall
2541	2541	include, at a minimum, non-identifying consumer data from the
2542	2542	preceding calendar year, including the following information:
2543	2543	(1) for each licensee:
2544	2544	(a) the number of loans the licensee is
2545	2545	servicing in New Mexico and the total outstanding balance;
2546	2546	(b) the number of loans, percentage of
2547	2547	all loans and the total outstanding balance of all loans that
2548	2548	the licensee is servicing that are currently in default;
2549	2549	(c) the number, percentage of all loans
2550	2550	and the total outstanding balance of all loans that the
2551	2551	licensee is servicing that are more than sixty days delinquent;
2552	2552	(d) the number, percentage of all loans
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2581	2581	and the total outstanding balance of all loans that the
2582	2582	licensee is servicing that have been paid off; and
2583	2583	(e) the number, percentage of all loans
2584	2584	and the total outstanding balance of all loans the licensee is
2585	2585	servicing that have been forgiven or discharged;
2586	2586	(2) information regarding the implementation
2587	2587	of the Student Loan Bill of Rights Act;
2588	2588	(3) the overall effectiveness of the student
2589	2589	loan ombud position, including information, in the aggregate,
2590	2590	regarding the number and categories of student loan borrower
2591	2591	and cosigner complaints filed with the division and the state
2592	2592	department of justice;
2593	2593	(4) the number of student loan borrower and
2594	2594	cosigner complaints investigated and resolved by the division
2595	2595	and the state department of justice; and
2596	2596	(5) any recommendations pertaining to the
2597	2597	division's regulation of student loan servicers and private
2598	2598	education lenders and the enforcement of the provisions of the
2599	2599	Student Loan Bill of Rights Act.
2600	2600	SECTION 25. [NEW MATERIAL] INFORMATION SHARING.--By July
2601	2601	31, 2026, the division, the student loan ombud, the state
2602	2602	department of justice and the higher education department shall
2603	2603	enter into an agreement to allow for the sharing of all
2604	2604	necessary information.
2605	2605	SECTION 26. [NEW MATERIAL] PRIVATE ACTION.--
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2634	2634	A. A person who suffers damage as a result of the
2635	2635	failure of a student loan servicer or private education lender
2636	2636	to comply with a provision of the Student Loan Bill of Rights
2637	2637	Act may bring an action in district court against that student
2638	2638	loan servicer or private education lender to recover any of the
2639	2639	following:
2640	2640	(1) actual damages, but in no case shall the
2641	2641	total award of damages be less than five hundred dollars ($500)
2642	2642	per violation;
2643	2643	(2) an order enjoining the methods, acts or
2644	2644	practices causing the compliance failure;
2645	2645	(3) restitution of property;
2646	2646	(4) punitive damages;
2647	2647	(5) attorney fees; and
2648	2648	(6) other relief the court deems proper.
2649	2649	B. In addition to any other remedies provided by
2650	2650	this section or otherwise provided by law, whenever it is
2651	2651	proven by a preponderance of the evidence that a student loan
2652	2652	servicer or private education lender has engaged in conduct
2653	2653	that substantially interferes with a student loan borrower's
2654	2654	right to an alternative payment arrangement; loan forgiveness,
2655	2655	cancellation or discharge; or any other financial benefit as
2656	2656	established under the terms of a borrower's promissory note or
2657	2657	under the federal Higher Education Act of 1965, and the
2658	2658	regulations promulgated pursuant to that act, the court shall
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2687	2687	award treble actual damages to the plaintiff, but in no case
2688	2688	shall the award of damages be less than one thousand five
2689	2689	hundred dollars ($1,500) per violation.
2690	2690	C. The remedies provided in the Student Loan Bill
2691	2691	of Rights Act are not intended to be the exclusive remedies
2692	2692	available to a person suffering damage due to the noncompliance
2693	2693	of a student loan servicer or private education lender, and the
2694	2694	person shall not be required to exhaust administrative remedies
2695	2695	established pursuant to the Student Loan Bill of Rights Act or
2696	2696	any other applicable law prior to bringing a private right of
2697	2697	action.
2698	2698	SECTION 27. [NEW MATERIAL] STUDENT LOAN BILL OF RIGHTS
2699	2699	FUND--CREATED--PURPOSE--APPROPRIATION.--
2700	2700	A. The "student loan bill of rights fund" is
2701	2701	created as a nonreverting fund in the state treasury and shall
2702	2702	be administered by the division. The fund consists of fees
2703	2703	collected by the division pursuant to the Student Loan Bill of
2704	2704	Rights Act and money that is appropriated or donated or that
2705	2705	otherwise accrues to the fund. Income from investment of the
2706	2706	fund shall be credited to the fund.
2707	2707	B. Money in the student loan bill of rights fund is
2708	2708	appropriated to the division to carry out the provisions of the
2709	2709	Student Loan Bill of Rights Act.
2710	2710	C. Expenditures from the fund shall be made on
2711	2711	warrants drawn by the secretary of finance and administration
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2740	2740	pursuant to vouchers signed by the director or the director's
2741	2741	authorized representative.
2742	2742	SECTION 28. Section 57-12-2 NMSA 1978 (being Laws 1967,
2743	2743	Chapter 268, Section 2, as amended) is amended to read:
2744	2744	"57-12-2. DEFINITIONS.--As used in the Unfair Practices
2745	2745	Act:
2746	2746	A. "person" means, where applicable, natural
2747	2747	persons, corporations, trusts, partnerships, associations,
2748	2748	cooperative associations, clubs, companies, firms, joint
2749	2749	ventures or syndicates;
2750	2750	B. "seller-initiated telephone sale" means a sale,
2751	2751	lease or rental of goods or services in which the seller or the
2752	2752	seller's representative solicits the sale by telephoning the
2753	2753	prospective purchaser and in which the sale is consummated
2754	2754	entirely by telephone or mail, but does not include a
2755	2755	transaction:
2756	2756	(1) in which a person solicits a sale from a
2757	2757	prospective purchaser who has previously made an authorized
2758	2758	purchase from the seller's business; or
2759	2759	(2) in which the purchaser is accorded the
2760	2760	right of rescission by the provisions of the federal Consumer
2761	2761	Credit Protection Act, 15 U.S.C. 1635, or regulations issued
2762	2762	pursuant thereto;
2763	2763	C. "trade" or "commerce" includes the advertising,
2764	2764	offering for sale or distribution of any services and any
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2793	2793	property and any other article, commodity or thing of value,
2794	2794	including any trade or commerce directly or indirectly
2795	2795	affecting the people of this state;
2796	2796	D. "unfair or deceptive trade practice" means an
2797	2797	act specifically declared unlawful pursuant to the Unfair
2798	2798	Practices Act, a false or misleading oral or written statement,
2799	2799	visual description or other representation of any kind
2800	2800	knowingly made in connection with the sale, lease, rental or
2801	2801	loan of goods or services or in the extension of credit or in
2802	2802	the collection of debts by a person in the regular course of
2803	2803	the person's trade or commerce, that may, tends to or does
2804	2804	deceive or mislead any person and includes:
2805	2805	(1) representing goods or services as those of
2806	2806	another when the goods or services are not the goods or
2807	2807	services of another;
2808	2808	(2) causing confusion or misunderstanding as
2809	2809	to the source, sponsorship, approval or certification of goods
2810	2810	or services;
2811	2811	(3) causing confusion or misunderstanding as
2812	2812	to affiliation, connection or association with or certification
2813	2813	by another;
2814	2814	(4) using deceptive representations or
2815	2815	designations of geographic origin in connection with goods or
2816	2816	services;
2817	2817	(5) representing that goods or services have
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2846	2846	sponsorship, approval, characteristics, ingredients, uses,
2847	2847	benefits or quantities that they do not have or that a person
2848	2848	has a sponsorship, approval, status, affiliation or connection
2849	2849	that the person does not have;
2850	2850	(6) representing that goods are original or
2851	2851	new if they are deteriorated, altered, reconditioned,
2852	2852	reclaimed, used or secondhand;
2853	2853	(7) representing that goods or services are of
2854	2854	a particular standard, quality or grade or that goods are of a
2855	2855	particular style or model if they are of another;
2856	2856	(8) disparaging the goods, services or
2857	2857	business of another by false or misleading representations;
2858	2858	(9) offering goods or services with intent not
2859	2859	to supply them in the quantity requested by the prospective
2860	2860	buyer to the extent of the stock available, unless the
2861	2861	purchaser is purchasing for resale;
2862	2862	(10) offering goods or services with intent
2863	2863	not to supply reasonable expectable public demand;
2864	2864	(11) making false or misleading statements of
2865	2865	fact concerning the price of goods or services, the prices of
2866	2866	competitors or one's own price at a past or future time or the
2867	2867	reasons for, existence of or amounts of price reduction;
2868	2868	(12) making false or misleading statements of
2869	2869	fact for the purpose of obtaining appointments for the
2870	2870	demonstration, exhibition or other sales presentation of goods
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2899	2899	or services;
2900	2900	(13) packaging goods for sale in a container
2901	2901	that bears a trademark or trade name identified with goods
2902	2902	formerly packaged in the container, without authorization,
2903	2903	unless the container is labeled or marked to disclaim a
2904	2904	connection between the contents and the trademark or trade
2905	2905	name;
2906	2906	(14) using exaggeration, innuendo or ambiguity
2907	2907	as to a material fact or failing to state a material fact if
2908	2908	doing so deceives or tends to deceive;
2909	2909	(15) stating that a transaction involves
2910	2910	rights, remedies or obligations that it does not involve;
2911	2911	(16) stating that services, replacements or
2912	2912	repairs are needed if they are not needed;
2913	2913	(17) failing to deliver the quality or
2914	2914	quantity of goods or services contracted for;
2915	2915	(18) violating the Tobacco Escrow Fund Act;
2916	2916	[or]
2917	2917	(19) offering or providing unposted or
2918	2918	unadvertised pricing or service based on the buyer's gender or
2919	2919	perceived gender identity; provided, however, that this
2920	2920	provision does not apply to persons regulated by the office of
2921	2921	superintendent of insurance pursuant to the New Mexico
2922	2922	Insurance Code; or
2923	2923	(20) violating Section 10 or 17 of the Student
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2952	2952	Loan Bill of Rights Act; and
2953	2953	E. "unconscionable trade practice" means an act or
2954	2954	practice in connection with the sale, lease, rental or loan, or
2955	2955	in connection with the offering for sale, lease, rental or
2956	2956	loan, of any goods or services, including services provided by
2957	2957	licensed professionals, or in the extension of credit or in the
2958	2958	collection of debts that to a person's detriment:
2959	2959	(1) takes advantage of the lack of knowledge,
2960	2960	ability, experience or capacity of a person to a grossly unfair
2961	2961	degree; [or]
2962	2962	(2) results in a gross disparity between the
2963	2963	value received by a person and the price paid; or
2964	2964	(3) violates Section 10 or 17 of the Student
2965	2965	Loan Bill of Rights Act ."
2966	2966	SECTION 29. APPLICABILITY.--The provisions of Section 11
2967	2967	of this act apply to private education loans issued on or after
2968	2968	January 1, 2026.
2969	2969	SECTION 30. EFFECTIVE DATE.--The effective date of the
2970	2970	provisions of this act is January 1, 2026.
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