AI Generated Summary
Purpose
This bill aims to modernize and strengthen oversight of lenders that provide student loans in Minnesota by requiring formal registration with the state’s licensing authority before they can operate in the state. It also removes outdated dates and sets up a framework for annual renewal and potential use of a national licensing system.
Main Provisions
- Beginning January 1, 2025, any lender must register with the Minnesota Commissioner before offering services in Minnesota.
- A lender may not offer or make a student loan to a Minnesota resident without first completing registration.
- Registration must include:
- lender’s name and address
- names of all officers, directors, owners, or other persons in control (as defined in the law)
- any additional information the commissioner requires by rule
- Registration issued or renewed expires December 31 of each year; lenders must renew annually.
- The commissioner may establish and enforce registration procedures, which may include:
- Using the Nationwide Multistate Licensing System and Registry (NMLS)
- Nonrefundable registration fees for lenders (including fees to use NMLS), paid by the lender
- Procedures and nonrefundable renewal fees (including continued NMLS use)
- Alternate registration procedures and nonrefundable fees for postsecondary education institutions that offer student loans
Effective Date and Scope
- Effective date: January 1, 2025
- Scope includes lenders that provide student loans in Minnesota and may include provisions affecting postsecondary institutions that offer student loans
Significant Changes to Law
- Creates a formal registration requirement for lenders with annual renewal
- Adds specific information lenders must provide to the state
- Introduces potential use of the NMLS system for registration and renewal
- Establishes nonrefundable fees for registration and renewals
- Extends registration considerations to postsecondary institutions that offer student loans
Compliance Considerations
- Lenders must prepare to register and renew each year, ensuring all required information is up to date
- Expect possible filing and payment of fees, and potential use of NMLS for processing
Summary of Impact
- Strengthened regulatory oversight of student loan lenders in Minnesota
- Clear annual compliance cycle tied to the calendar year
- Possible alignment with a national licensing framework to streamline oversight
Relevant Terms - registration - lender - commissioner - Minnesota - student loan - NMLS (Nationwide Multistate Licensing System and Registry) - officers, directors, owners, in control - annual renewal - nonrefundable fees - postsecondary institutions - rules by the commissioner
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2026 | House | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill amends Minnesota Statutes 2024 section 58B.051 to require lenders to register with the commissioner before providing services in Minnesota.",
"modified": []
},
"citation": "58B.051",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 58B.02, subdivision 6, defining who is in control of an applicant for registration under section 58B.051.",
"modified": []
},
"citation": "58B.02",
"subdivision": "subd. 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The text references Minnesota Statutes 2024 section 58B.051, subdivision 1, paragraph 4 (as part of amendments).",
"modified": []
},
"citation": "58B.051.1.4",
"subdivision": ""
}
]Progress through the legislative process
In Committee