DIGEST OF INTRODUCED BILL
Student loan terms and conditions. Provides that the following apply to a student loan, including a refinancing or consolidation of an existing student loan, that is made to an Indiana student after June 30, 2009: (1) The loan documents for the loan may not provide for, and the lender not charge the borrower, a prepayment fee or penalty. (2) In the case of an adjustable rate loan, the first interest rate adjustment may not occur or be scheduled to occur on a date that is earlier than seven years after the loan is issued or closed. Provides that a person that knowingly or intentionally violates one of these provisions commits a deceptive act that is actionable by the attorney general. Provides that the state student assistance commission (commission), in consultation with the department of financial institutions, may adopt rules to provide guidance to: (1) student loan lenders; and (2) Indiana students and their parents or legal guardians; concerning the rights created and duties imposed by these provisions. Provides that the attorney general: (1) shall act as legal counsel to the commission in the administration and enforcement of these provisions; and (2) may, upon the attorney general's own motion or upon receiving a complaint or request from certain specified persons, conduct an investigation to determine if a violation of these provisions has occurred.