North Carolina 2023-2024 Session Status: In Committee Bipartisan · 12 D · 8 R cosponsors

SB 194 — Student Borrowers' Bill of Rights.

Last action — Passed 1st Reading

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

44 added · 45 removed

Plain-language change summary

In the updated version of Senate Bill 194, some language has been clarified, and inconsistencies have been corrected. For example, unnecessary phrases were removed, streamlining the bill for better understanding and efficiency. These changes matter because they make the legislation clearer and more accessible, making it easier for stakeholders to follow and comply with the new rules, especially concerning student loan servicing and repayment. Overall, these refinements help ensure that the intent of the bill is accurately conveyed and understood.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Mar 2, 2023 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2023 S 1 SENATE BILL 194 Short Title:
194 SESSION 2023 PRINCIPAL CLERK S D SENATE BILL DRS35080-MUf-15 Short Title:
A BILL TO BE ENTITLED AN ACT TO ENACT A STUDENT BORROWERS' BILL OF RIGHTS, TO PROVIDE THAT THE COMMISSIONER OF BANKS SHALL LICENSE AND REGULATE STUDENT LOAN SERVICERS, AND TO ESTABLISH THE POSITION OF THE STUDENT LOAN OMBUDSMAN.
Rules and Operations of the Senate March 6, 2023 A BILL TO BE ENTITLED AN ACT TO ENACT A STUDENT BORROWERS' BILL OF RIGHTS, TO PROVIDE THAT THE COMMISSIONER OF BANKS SHALL LICENSE AND REGULATE STUDENT LOAN SERVICERS, AND TO ESTABLISH THE POSITION OF THE STUDENT LOAN OMBUDSMAN.
*DRS35080-MUf-15* General Assembly Of North Carolina Session 2023 d.
*S194-v-1* General Assembly Of North Carolina Session 2023 d.
– A loan or agreement that is extended to a borrower expressly tofinancepostsecondary educationexpensesorotherschool-relatedexpenses.
– A loan or agreement that is extended to a borrower expressly tofinancepostsecondaryeducationexpensesorotherschool-relatedexpenses.
Page 2 DRS35080-MUf-15 General Assembly Of North Carolina Session 2023 (5) College Foundation, Inc.
Page 2 Senate Bill 194-First Edition General Assembly Of North Carolina Session 2023 (5) College Foundation, Inc.
– The Commissioner may deem an application abandoned if the applicant fails to respond to a written request for information by the Commissioner within 30 DRS35080-MUf-15 Page 3 General Assembly Of North Carolina Session 2023 days of the date of the request.
– The Commissioner may deem an application abandoned if the applicant fails to respond to a written request for information by the Commissioner within 30 Senate Bill 194-First Edition Page 3 General Assembly Of North Carolina Session 2023 days of the date of the request.
– A person seeking to act within this State as a student loan servicer is exempt from the procedures describedinsubsections(a)through(d)ofthissectionuponadeterminationbytheCommissioner that the person is a party to a contract awarded by the United States Secretary of Education under 20 U.S.C.
– A person seeking to act within this State as a student loan servicer is exempt from the procedures describedinsubsections(a)through(d)ofthissectionuponadeterminationbytheCommissioner that the person is a partyto a contract awarded bythe United States Secretary of Education under 20 U.S.C.
Automatically issue a renewal license upon payment of the assessment required by G.S.
Automaticallyissue a renewal license upon payment of the assessment required by G.S.
– A person issued a license pursuant to this subsection shall provide the Commissioner with written notice within seven days after notification of the expiration, revocation, or termination of any contract awarded by the United States Secretary of Education under 20 U.S.C.
– A person issued a license pursuant to this subsection shall provide the Commissioner with written notice within seven days after notification of the expiration, revocation, or termination of any contract awarded by the United States Secretaryof Education under 20 U.S.C.
§ 1087f, nothing in this section prevents the Commissioner from issuing, or filing acivil actionfor, an order to temporarily or permanently enjoin a person from acting as a student loan servicer or from violating this Article.
§ 1087f, nothing in this section prevents the Commissioner from issuing, or filing a civil action for, an order to temporarily or permanently enjoin a person from acting as a student loan servicer or from violating this Article.
Page 4 DRS35080-MUf-15 General Assembly Of North Carolina Session 2023 (b) The Commissioner may by order increase the amount of net worth required of an applicant or licensee if the Commissioner determines additional net worth is necessary to ensure safe and sound operation based on consideration of the following factors:
Page 4 Senate Bill 194-First Edition General Assembly Of North Carolina Session 2023 (b) The Commissioner may by order increase the amount of net worth required of an applicant or licensee if the Commissioner determines additional net worth is necessary to ensure safe and sound operation based on consideration of the following factors:
Claimants against the licensee may themselves bring suit directly on the surety bond, or the Commissioner may bring suit on behalf of the claimants, either in one action or in successive actions.
Claimants against the licensee may themselves bring suit directly on the surety bond, or the Commissioner maybring suit on behalf of the claimants, either in one action or in successive actions.
DRS35080-MUf-15 Page 5 General Assembly Of North Carolina Session 2023 (b) Expiration.
Senate Bill 194-First Edition Page 5 General Assembly Of North Carolina Session 2023 (b) Expiration.
– If the Commissioner determines that the financial condition or manner of operation of a licensee warrants further examination or an increased level of supervision, theCommissionermaycharge,and thelicenseeshall pay, aspecialassessmentequal to the reasonable cost of further examination or increased level of supervision.
– If the Commissioner determines that the financial condition or manner of operation of a licensee warrants further examination or an increased level of supervision, theCommissionermaycharge,andthelicenseeshall pay, aspecialassessmentequal to the reasonable cost of further examination or increased level of supervision.
(2) Within20daysofthe occurrenceofanyoneofthe followingevents, alicensee shall file a written report with the Commissioner through the NMLS describing the event and its expected impact on the licensee's activities in this State:
(2) Within20daysoftheoccurrenceofanyoneofthe followingevents, alicensee shall file a written report with the Commissioner through the NMLS describing the event and its expected impact on the licensee's activities in this State:
Page 6 DRS35080-MUf-15 General Assembly Of North Carolina Session 2023 d.
Page 6 Senate Bill 194-First Edition General Assembly Of North Carolina Session 2023 d.
(3) If the information contained in any document filed with the Commissioner or the NMLS is or becomes inaccurate or incomplete in any material respect, the licensee or applicant shall within 30 days file a correcting amendment to the information contained in the document.
(3) If the information contained in any document filed with the Commissioner or the NMLS is or becomes inaccurate or incomplete in anymaterial respect, the licensee or applicant shall within 30 days file a correcting amendment to the information contained in the document.
(2) With respect to student loansenrolledin anytypeofincome-driven repayment plan, the number of borrowers, number of student loans, and total outstanding balance.
(2) With respect to student loans enrolledin anytypeofincome-driven repayment plan, the number of borrowers, number of student loans, and total outstanding balance.
(b) The 30-day period in subsection (a) of this section may be extended for not more than 15 days if, before the end of the 30-day period, the student loan servicer notifies the borrower or the borrower's representative of the extension and the reason for the delay.
(b) The 30-dayperiod in subsection (a) of this section maybe extended for not more than 15 days if, before the end of the 30-day period, the student loan servicer notifies the borrower or the borrower's representative of the extension and the reason for the delay.
(c) Exceptwhenrequiredby15U.S.C.§1692e(8)to communicatethatadebtisdisputed, a student loan servicer shall not furnish to a consumer reporting agency information regarding a payment that is the subject of a written inquiry related to a dispute on a borrower's payment on a student loan during the 60 days following receipt of the written inquiry.
(c) Exceptwhenrequiredby15U.S.C.§1692e(8)to communicatethatadebtis disputed, a student loan servicer shall not furnish to a consumer reporting agency information regarding a payment that is the subject of a written inquiry related to a dispute on a borrower's payment on a student loan during the 60 days following receipt of the written inquiry.
Where loans on a borrower's student loan account have an equal level of delinquency, a student loan servicer shall apply partial payments to satisfy as many individual loan payments as possible on the borrower's account.
Where loans on a borrower's student loan account have an equal level of delinquency, a student loan servicer shall applypartial payments to satisfyas many individual loan payments as possible on the borrower's account.
DRS35080-MUf-15 Page 7 General Assembly Of North Carolina Session 2023 (2) The old student loan servicer shall transfer all records of the borrower to the new student loan servicer within 45 days of the sale, assignment, or transfer.
Senate Bill 194-First Edition Page 7 General Assembly Of North Carolina Session 2023 (2) The old student loan servicer shall transfer all records of the borrower to the new student loan servicer within 45 days of the sale, assignment, or transfer.
For purposes ofthis subdivision,aborrower whohas submittedacomplaint to any State agency is deemed to have authorized the student loan servicer to communicate directly with the State agency about the borrower's student loan.
For purposes ofthis subdivision,aborrower whohas submittedacomplaint to any State agency is deemed to have authorized the student loan servicer to communicate directlywith the State agencyabout the borrower's student loan.
(11) Communicate with a borrower in any manner designed to harass or intimidate the borrower.
(11) Communicate with a borrower in anymanner designed to harass or intimidate the borrower.
Page 8 DRS35080-MUf-15 General Assembly Of North Carolina Session 2023 (a) For purposes of carrying out this Article, the Commissioner may access any documents or information, including all of the following:
Page 8 Senate Bill 194-First Edition General Assembly Of North Carolina Session 2023 (a) For purposes of carrying out this Article, the Commissioner may access any documents or information, including all of the following:
The Commissioner may order the attendance of and examine under oath all persons whose testimony about the student loan servicing activity the Commissioner deems relevant.
The Commissioner may order the attendance of and examine under oath all persons whose testimonyabout the student loan servicingactivity the Commissioner deems relevant.
(c) Upon request, each student loan servicer shall make available in a location that is acceptable to the Commissioner the records relating to the operations of the student loan servicer.
(c) Upon request, each student loan servicer shall make available in a location that is acceptable to the Commissioner the records relatingto the operations of the student loan servicer.
DRS35080-MUf-15 Page 9 General Assembly Of North Carolina Session 2023 (5) Accept an audit report made by an independent certified public accountant and incorporate the audit report in the report of the investigation or examination or other writing of the Commissioner.
Senate Bill 194-First Edition Page 9 General Assembly Of North Carolina Session 2023 (5) Accept an audit report made by an independent certified public accountant and incorporate the audit report in the report of the investigation or examination or other writing of the Commissioner.
The entities described in subsection (b) or (c) of this section may share information with all State and federal regulatory officials with student loan industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by State and federal law.
The entities described in subsection (b) or (c) of this section may share information with all State and federal regulatory officials with student loan industryoversight authority without the loss of privilege or the loss of confidentiality protections provided by State and federal law.
(a) The Commissioner may, by order, deny, suspend, revoke, or refuse to renew a license under this Article or may restrict the manner in which a licensee or a controlling person of a licensee engages in student loan servicing, if the Commissioner finds both of the following:
(a) The Commissioner may, byorder, deny, suspend, revoke, or refuse to renew a license under this Article or may restrict the manner in which a licensee or a controlling person of a licensee engages in student loan servicing, if the Commissioner finds both of the following:
Page 10 DRS35080-MUf-15 General Assembly Of North Carolina Session 2023 a.
Page 10 Senate Bill 194-First Edition General Assembly Of North Carolina Session 2023 a.
– If a student loan servicer violates this Article or rule adopted or order issued under this Article, the Commissioner may order the student loan servicer to pay restitution to a borrower injured by the violation.
– If a student loan servicer violates this Article or rule adopted or order issued under this Article, the Commissioner mayorder the student loan servicer to payrestitution to a borrower injured by the violation.
DRS35080-MUf-15 Page 11 General Assembly Of North Carolina Session 2023 (1) Consented to the jurisdiction of the courts of this State for an action arising under this Article.
Senate Bill 194-First Edition Page 11 General Assembly Of North Carolina Session 2023 (1) Consented to the jurisdiction of the courts of this State for an action arising under this Article.
(b) The Commissioner is deemed to have complied with the requirement of law concerning service of process upon mailing by certified mail notice to a licensee, postage prepaid and addressed to the last known address on file with the Commissioner.
(b) The Commissioner is deemed to have complied with the requirement of law concerning service of process upon mailingbycertified mail notice to a licensee, postage prepaid and addressed to the last known address on file with the Commissioner.
53C-2-6(b), any person aggrieved by any rule adopted or order issued by the Commissioner may appeal to the State Banking Commission for review upon providing awrittennotice ofappeal within20days aftertherulewas adopted ororderwas issued.
53C-2-6(b), any person aggrieved by any rule adopted or order issued by the Commissioner may appeal to the State Banking Commission for review upon providingawrittennotice ofappeal within20days aftertherulewas adopted ororderwas issued.
The program shall include key loan terms, documentation Page 12 DRS35080-MUf-15 General Assembly Of North Carolina Session 2023 requirements, monthly payment obligations, income-based repayment options, the availability of State and federal loan forgiveness programs, and disclosure requirements.
The program shall include key loan terms, documentation Page 12 Senate Bill 194-First Edition General Assembly Of North Carolina Session 2023 requirements, monthlypayment obligations, income-based repayment options, the availabilityof State and federal loan forgiveness programs, and disclosure requirements.
(3) The efficacy of the student loan borrower education course in making student borrowersawareoftheirrights and responsibilitiesand theresources available to them." SECTION 2.(b) This section becomes effective January 1, 2025.
(3) The efficacy of the student loan borrower education course in making student borrowersawareoftheirrights andresponsibilitiesand theresources available to them." SECTION 2.(b) This section becomes effective January 1, 2025.
If any provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provision or application and, to this end, the provisions of this act are severable.
If any provision of this act or its application to any person or circumstance is held invalid, the invaliditydoes not affect other provisions or applications of this act that can be given effect without the invalid provision or application and, to this end, the provisions of this act are severable.
DRS35080-MUf-15 Page 13
Senate Bill 194-First Edition Page 13
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Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules and Operations of the Senate

  3. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 20 co-sponsors · 157 not signed on

Sponsors (2)

Co-sponsors (20)

Not signed on (157)

157 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance education
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Frequently asked questions

Who sponsors SB 194?
SB 194 is sponsored by Kandie D. Smith (Democratic), Amy S. Galey (Republican), David W. Craven, Jr. (Republican), Eddie D. Settle (Republican), Gale Adcock (Democratic), Val Applewhite (Democratic), Sydney Batch (Democratic), Jay J. Chaudhuri (Democratic), Lisa Grafstein (Democratic), Ralph Hise (Republican), Hunt, Paul A. Lowe, Jr. (Democratic), Marcus, Julie Mayfield (Democratic), Tom McInnis (Republican), Timothy D. Moffitt (Republican), Mujtaba A. Mohammed (Democratic), Natalie S. Murdock (Democratic), Paul Newton (Republican), DeAndrea Salvador (Democratic), Vickie Sawyer (Republican), and Joyce Waddell (Democratic).
What is the current status of SB 194?
This bill died with 2023-2024 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 194?
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