Student loans; licensing of qualified education loan servicers, report, civil penalties. (SB1053)

Introduced By

Sen. Janet Howell (D-Reston) with support from co-patron Sen. Jennifer McClellan (D-Richmond)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Student loan servicers; student loan ombudsman. Prohibits any person from acting as a student loan servicer without first obtaining a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks and credit unions are exempt from the licensing provisions. The servicing of a student loan encompasses (i) receiving any scheduled periodic payments from a student loan borrower pursuant to the terms of a student education loan; (ii) applying the payments of principal and interest and such other payments with respect to the amounts received from a student loan borrower, as may be required pursuant to the terms of a student education loan; and (iii) performing other administrative services with respect to a student education loan. Student loan servicers are prohibited from, among other things, (a) misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a student loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan; (b) knowingly misapplying or recklessly applying student loan payments to the outstanding balance of a student loan; and (c) failing to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau. The measure also establishes the Office of the Student Loan Ombudsman within the SCC's Bureau of Financial Institutions. The Office of the Student Loan Ombudsman is required to provide timely assistance to any student loan borrower of any student education loan in the Commonwealth. The Office of the Student Loan Ombudsman is further required to establish and maintain a student loan borrower education course, which shall cover key loan terms, documentation requirements, monthly payment obligations, income-based repayment options, loan forgiveness, and disclosure requirements. Violations are subject to a civil penalty not exceeding $2,500. The bill has a delayed effective date of January 1, 2019. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/06/2017Prefiled and ordered printed; offered 01/11/17 17101765D
01/06/2017Referred to Committee on Education and Health
01/23/2017Assigned Education sub: Higher Education
01/25/2017Impact statement from DPB (SB1053)
01/26/2017Reported from Education and Health with amendments (15-Y 0-N) (see vote tally)
01/26/2017Rereferred to Finance
02/01/2017Reported from Finance with substitute (12-Y 3-N) (see vote tally)
02/01/2017Committee substitute printed 17105060D-S1
02/02/2017Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/03/2017Read second time
02/03/2017Committee amendments rejected
02/03/2017Reading of substitute waived
02/03/2017Committee substitute agreed to 17105060D-S1
02/03/2017Engrossed by Senate - committee substitute SB1053S1
02/06/2017Read third time and passed Senate (36-Y 4-N) (see vote tally)
02/08/2017Placed on Calendar
02/08/2017Read first time
02/08/2017Referred to Committee on Commerce and Labor
02/13/2017Impact statement from DPB (SB1053S1)
02/14/2017Failed to report (defeated) in Commerce and Labor (7-Y 13-N) (see vote tally)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 2 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.



Sen. Mark Peake (R-Lynchburg): 1952 AND MRS. JOY CABARUK SPEAKS, MEMBER OF THE CLASS OF 1955. ON THAT APRIL MORNING BACK IN 1951, THEY HAD HEARD BARBARA JOHNS SPEAK AND THEY BRAVELY JOINED THEIR FELLOW STUDENTS IN GOING ON STRIKE. MRS. SPEAKS WAS ALSO A PLAINTIFF IN DAVIS VS. PRINCE EDWARD COUNTY, THE CASE THAT WOMEN A BECAME APART OF THE LANDMARK DEN 1954, BROWN VS. BOARD OF EDUCATION. JOINING THEM ARE OTHER CITIZENS WHO WERE DENIED A PUBLIC EDUCATION FROM 1959 TO 1964. THERE ARE MRS. MICKEY MICKEY CARINGTON.ROBERT JOHNSO. ETTA KNEEL, MELVIN NUDLEY AND MR. CHARLES TAYLOR. ALONG WITH BARBARA JOHNS THESE CITIZENS STRUGGLED AND SACRIFICED TO ADVANCE QUALITY AND EDUCATION FOR CHILDREN ACROSS VIRGINIA AND AMERICA. WE WANT TO THANK THEM FOR BEING HERE TODAY AND I ASK THAT YOU PLEASE GIVE THEM THE WARM WELCOME OF THE SENATE.

[Unknown]: THANK YOU, SENATOR. WOULD MEMBERS FROM THE MUSEUM PLEASE RISE? THANK YOU ALL SO MUCH FOR BEING WITH US THIS MORNING. AND THANKS FOR YOUR ADVOCACY ACROSS THE COMMONWEALTH AND I'M SURE YOU HAVE HEARD THIS IS NOT NEW NEWS BUT THE NEW OFFICE BUILDING ON NINTH STREET HAS BEEN NAMED AFTER BARBARA JOHNS AND THE OFFICE BUILDING THAT I WORK IN WHICH IS JUST DOWN THE HALL AND ON THE OTHER SIDE OF THE CAPITOL IS THE OLIVER HILL BUILDING AND OLIVER HILL IS THE ONE THAT ARGUED THAT PARTICULAR CASE. A LOT OF HISTORY HERE AND WE APPRECIATE YOU ALL BEING HERE TO KEEP THAT HISTORY ALIVE IN VIRGINIA. I WOULD ASK THE MEMBERS OF THE SENATE TO JOIN ME IN OFFERING MEMBERS FROM THE MUSEUM THE WARM WELCOME OF THE SENATE. [APPLAUSE]