student loan servicers; licensure

HB 2302 requires student loan servicers operating in Arizona to obtain a state license, with exemptions for banks, credit unions, and their wholly-owned subsidiaries. It establishes a Student Loan Ombudsman to handle borrower complaints, provide education on loan terms (including repayment options and forgiveness), and compile complaint data. The licensing process mandates application fees ($1,800 total), financial disclosures, background checks, and proof of financial stability to ensure servicers operate fairly. The ombudsman must also create a mandatory borrower education course by October 1, 2026, covering key loan terms and rights. This bill directly affects student loan servicers and borrowers in Arizona by setting licensing standards and improving complaint resolution.