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Legislative Year: 2021 Change

Bill Detail: SB21-057

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Title Private Lenders Of Student Loans Acts And Practices
Status Governor Signed (06/29/2021)
Bill Subjects
  • Financial Services & Commerce
  • Higher Education
House Sponsors M. Gray (D)
S. Gonzales-Gutierrez (D)
Senate Sponsors F. Winter (D)
J. Gonzales (D)
House Committee Education
Senate Committee Education
Date Introduced 02/16/2021

The bill expands the existing Colorado Student Loan Servicers
Act, which applies only to persons who service student loans, by adding
a new part 2 covering private lenders, creditors, and collection agencies
in connection with those student education loans that are not made,
insured, or guaranteed under federal law and that are used for
postsecondary education. The bill:
  • Requires lenders to grant a release to cosigners if certain
conditions are met, including 12 months of consecutive,

on-time payments, and to ensure that cosigners have access
to all documentation and records related to the loan they
have cosigned;
  • Expands disability discharge requirements so that a
borrower or cosigner may be released from repayment
obligations if permanently disabled;
  • Prohibits robo-signing of documents used in collection
lawsuits and requires specific evidence of loan origination
and chain of ownership of the debt before a loan creditor or
collection agency may commence legal proceedings;
  • Prohibits auto-defaults, in which a loan is declared
immediately due and payable upon the death or bankruptcy
of a cosigner even when there has been no default in
payments; and
  • Provides legal recourse for borrowers who are harmed by
predatory acts and practices of a lender, creditor, or
collection agency. A violation of the new part 2 is defined
as a deceptive trade practice under the Colorado
Consumer Protection Act.

Committee Reports
with Amendments
Full Text
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Fiscal Notes Fiscal Notes (09/01/2021) (most recent)  
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