The Student Loan Borrower Bill of Rights protects Minnesota borrowers by outlining the roles and responsibilities of a student loan servicer.

Under the Student Loan Borrower Bill of Rights, a loan servicer must:

  • Acknowledge written communication from a borrower within 10 days and respond within 30 days.
  • Confirm how a borrower would like to have an overpayment applied to their loans.
  • Apply partial loan payments in a way that minimizes late fees or the negative impact on a borrower's credit history.
  • Ensure a borrower continues receives any loan benefits while moving from loan servicer to servicer, and transfer all loan information to the new servicer within certain time periods.
  • Evaluate a borrower's eligibility for an income-driven repayment (IDR) plan prior to placing them in default.

Under the Student Loan Borrower Bill of Rights, a loan servicer cannot:

  • Try to mislead a borrower.
  • Share unfair, deceptive, or misrepresented information related to the loan servicing.
  • Make false statements or leave out important facts about applications, information, or reports file with all levels of government.
  • Misapply loans payments, either knowingly or negligently.
  • Provide inaccurate information to a consumer reporting agency either knowingly or negligently, and fail to report both favorable and unfavorable payment history in annual reports.
  • Refuse to communicate with authorized representatives of a borrower.
  • Hide if a borrower is eligible for a student loan forgiveness program.