Colorado § 5-20-209 - Refinancing - additional disclosures - limitations on default pending approval.

§ 5-20-209. Refinancing - additional disclosures - limitations on default pending approval.

(1) Before offering a person a private education credit obligation that is being used to refinance an existing education credit obligation, a private education creditor shall provide the person a disclosure explaining that benefits and protections applicable to the existing credit obligation may be lost due to the refinancing. The disclosure must be provided on a one-page information sheet in at least twelve-point type and must be written in simple, clear, understandable, and easily readable language.

(2) If a private education creditor offers any private education credit borrower modified or flexible repayment options in connection with a private education credit obligation, the creditor shall offer those modified or flexible repayment options to all of the creditor's private education credit borrowers. In addition, the creditor shall:

(a) Provide on its website a description of any modified or flexible repayment options offered by the creditor for private education credit obligations;

(b) Establish policies and procedures and implement modified or flexible repayment options consistently in order to facilitate the evaluation of private education credit obligation modified or flexible repayment option requests, including providing accurate information regarding any such options that may be available to the private education credit borrower through the promissory note or that may have been marketed to the private education credit borrower through marketing materials; and

(c) Consistently present and offer private education credit obligation modified or flexible repayment options to private education credit borrowers with similar financial circumstances, if the creditor offers such repayment options.

(3) A private education creditor shall not place a credit obligation or account into default or accelerate a credit obligation while a private education credit borrower is seeking a credit obligation modification or enrollment in a modified or flexible repayment plan; except that a creditor may place a credit obligation or account into default or accelerate a credit obligation for payment default ninety days after the private education credit borrower's default.

Source: L. 2021: Entire part added, (SB 21-057), ch. 378, p. 2524, § 5, effective June 29. L. 2023: Entire section amended, (SB 23-248), ch. 360, p. 2162, § 24, effective August 7.