S.B. 19-002 (the Colorado Student Loan Servicers Act) was signed into law on May 13, 2019 and took effect on August 2, 2019. Among other things the law requires servicers of student loans owed by Colorado residents to be licensed by Colorado’s Uniform Consumer Credit Code (UCCC) Administrator.
Colorado now joins California, Connecticut, District of Columbia, Illinois, Washington and New York with a licensing requirement for student loan servicers.
Licenses must be obtained by January 31, 2020. Collection agencies that only collect on defaulted student loans will be exempt from the Act. If a collection agency collects on both current and defaulted loans, they must obtain a license from Colorado. The license applications will not be available until later this fall. Please contact Cornerstone Support for more information and assistance with obtaining this license.