COHEAO Laws to Watch
| link | State | Reference | Title | topics | Summary | Active | Enacted? |
|---|---|---|---|---|---|---|---|
Arizona | HB2290 | Student Loan Servicers; Licensure | Licensing,Servicing | Proposed law related to the licensure of student loan servicers. The bill aims to
regulate companies that manage student loans by requiring them to obtain a state operating
license. This legislation typically includes provisions for consumer protections, oversight
mechanisms, and enforcement actions to ensure that loan servicers comply with fair lending
practices. | |||
Arizona | HB2302 | Student Loan Servicers; Licensure | Licensing,Servicing | Amending title 6, Arizona Revised Statutes, by adding chapter 18; relating to student
loans. | |||
California | AB-1534 | Student financial aid: federal Workforce Pell Grant program. | Short Term Pell | ||||
California | AB-1864 | Financial institutions: regulation: Department of Financial Protection and Innovation. | Financial Institutions | On October 22, the California DFPI announced the state’s approval of registration
regulations enacted under the CCFPL, which will require providers of (1) debt settlement services,
(2) education financing, (3) income-based advances (including earned wage access products),
and (4) student debt relief services to register with the state and comply with data submission
requirements. Financial service providers covered by the new regulations must file an application
to register by February 15, 2025, to continue operating legally in the state.
Debt settlement companies are likely the largest sector under the new registration regime, but
California has recently seen the number of student loan relief and earned wage access (EWA)
products grow dramatically. EWA and wage advance products are already classified as loans
under state law, and any voluntary or optional payments are considered “finance charges.”
The mandatory registration is also temporary, lasting just four years. The DFPI will collect
information on transaction volumes, business models and charges to consumers and will prepare
a report at the end of the four-year period. The California legislature will then review the report
and determine whether to continue with the oversight going forward. |
