Colorado § 5-20-203 - Registration of private education creditors - penalties - rules.

§ 5-20-203. Registration of private education creditors - penalties - rules.

(1) On or after September 1, 2021, a person shall not offer or make a private education loan to a resident of Colorado without first registering with the administrator as provided in this section.

(2) A private education creditor shall:

(a) Register with the administrator pursuant to any registration procedures set forth by the administrator and pay the fee set by the administrator by rule; and

(b) Provide the administrator, at the time of registration and not less than once per year thereafter, as established by the administrator by rule, and at other times upon the administrator's request, with the following documents and information:

(I) A list of all schools at which the private education creditor has provided a private education credit obligation to a private education credit borrower; except that this requirement does not apply to a private education credit obligation that is refinanced;

(II) The volume of private education loans made annually to private education loan borrowers;

(III) The volume of private education credit obligations made annually at each school identified under subsection (2)(b)(I) of this section; except that this requirement does not apply to a private education credit obligation that is refinanced;

(IV) The default rate for private education credit borrowers obtaining private education credit obligations from the private education creditor, including the default rate for private education credit obligations made to private education credit borrowers at each school listed pursuant to subsection (2)(b)(I) of this section; except that this requirement does not apply to a private education credit obligation that is refinanced;

(V) A copy of each model promissory note, agreement, contract, or other instrument used by the private education lender during the previous year to substantiate that a private education loan has been extended to a private education loan borrower or that a private education loan borrower owes a debt to the lender; and

(VI) The name and address of the private education lender and any officer, director, partner, or owner of a controlling interest of the lender.

(3) The administrator shall create a publicly accessible website that includes the following information about private education lenders registered in Colorado:

(a) The name, address, telephone number, and website for all registered private education lenders;

(b) A summary of the information required under subsections (2)(b)(I) to (2)(b)(VI) of this section; and

(c) Copies of all model promissory notes, agreements, contracts, and other instruments provided to the administrator under subsection (2)(b)(V) of this section.

(4) The administrator may impose civil penalties on private education lenders and collection agencies in the same amounts, in substantially the same manner, and on substantially the same grounds as provided in sections 5-20-114 to 5-20-117 for the imposition of civil penalties on student loan servicers.

(5) The administrator may order that any person who has been found to have violated any provision of this part 2, or of the rules issued pursuant to this part 2, and has thereby caused financial harm to a consumer be barred for a term not exceeding ten years from acting as a private education lender or a stockholder, officer, director, partner or other owner, or employee of a private education lender.

(6) The administrator may prescribe an alternative registration process and fee structure for public and private nonprofit postsecondary educational institutions.

(7) An entity that is required to file a notification with the administrator pursuant to section 5-6-202 or required to hold a license pursuant to section 5-2-301, 5-16-118, or 5-20-106 is exempt from registration under this section but is subject to all other requirements of this part 2.

(8) The administrator may waive registration fees for:

(a) Private education creditors that make, extend, or hold fewer than five private education credit obligations in the year starting September 1 preceding the registration; and

(b) State or local governmental entities.

Source: L. 2021: Entire part added, (SB 21-057), ch. 378, p. 2519, § 5, effective June 29. L. 2023: IP(2), (2)(b)(I), (2)(b)(III), and (2)(b)(IV) amended, (SB 23-248), ch. 360, p. 2158, § 18, effective August 7. L. 2024: (8) added, (HB 24-1324), ch. 316, p. 2120, § 4, effective August 7.