Massachusetts § 35 - Student loan ombudsman

§ 35. Student loan ombudsman

Section 35. (a) There shall be a student loan ombudsman within the office of the attorney general. The student loan ombudsman shall receive, review and assist in resolving complaints from student loan borrowers including, but not limited to, those concerning attempts to resolve complaints in collaboration with institutions of higher education, student loan servicers, the division of banks and any other participants in student loan lending.

(b) The responsibilities of the ombudsman may include, but shall not be limited to, helping student loan borrowers: (i) explore repayment options; (ii) apply for federal income-driven repayment plans; (iii) avoid or remove a default; (iv) end wage garnishments, tax refund interceptions or benefit offsets; (v) resolve billing disputes with student loan servicers; (vi) obtain student loan details and information; (vii) stop harassing collection calls; and (viii) apply for loan discharges or forgiveness.

The ombudsman shall prepare, make available or direct those seeking assistance to student loan borrower education presentations and materials regarding student loans. The presentations and materials shall include, but not be limited to, an explanation of: (i) key student loan terms; (ii) documentation requirements; (iii) monthly payment obligations; (iv) income-based repayment options; (v) student loan forgiveness; and (vi) disclosure requirements. The ombudsman shall make best efforts to inform public employees about the federal Public Service Loan Forgiveness Program and direct them to available information about the program.

(c) Annually, not later than January 1, the ombudsman shall file a report on activities related to student loans and student loan servicers, as defined in section 1 of chapter 93L, with the clerks of the senate and house of representatives, the senate and house committees on ways and means and the joint committee on financial services.

The report shall include, but not be limited to: (i) the number of complaints received by the ombudsman from student loan borrowers and the names of the student loan servicers against whom such complaints were filed; (ii) the types of complaints received by the ombudsman from student loan borrowers; (iii) the types of resolutions reached for complaints received; and (iv) recommendations to improve the effectiveness of the position of student loan ombudsman.

The report shall also include an overview of any information received from the division of banks including, but not limited to: (i) the number of complaints received by the division of banks concerning student loans: (ii) the types of complaints received by the division of banks concerning student loans; (iii) the types of resolutions reached by the division of banks; and (iv) recommendations to improve the regulation, oversight and enforcement efforts of the division of banks with respect to student loan servicers. Information and data in the report shall be in an aggregate and de-identified format.

(d) The ombudsman shall receive information from the division of banks to assist the ombudsman in fulfilling its duties under this section.