2021 Colorado Code
Title 5 - Consumer Credit Code
Article 20 - Colorado Student Loan Servicers
Part 2 - Private Student Education Lenders
§ 5-20-209. Refinancing - Additional Disclosures - Limitations on Default Pending Approval

1. Before offering a person a private education loan that is being used to refinance an existing education loan, a private education lender shall provide the person a disclosure explaining that benefits and protections applicable to the existing loan may be lost due to the refinancing. The disclosure must be provided on a one-page information sheet in at least twelve-point type and must be written in simple, clear, understandable, and easily readable language.
2. If a private education lender offers any private education loan borrower modified or flexible repayment options in connection with a private education loan, the lender shall offer those modified or flexible repayment options to all of its private education loan borrowers. In addition, the lender shall:
   1. Provide on its website a description of any modified or flexible repayment options offered by the lender for private education loans;
   2. Establish policies and procedures and implement modified or flexible repayment options consistently in order to facilitate the evaluation of private education loan modified or flexible repayment option requests, including providing accurate information regarding any such options that may be available to the private education loan borrower through the promissory note or that may have been marketed to the private education loan borrower through marketing materials; and
   3. Consistently present and offer private education loan modified or flexible repayment options to private education loan borrowers with similar financial circumstances, if the lender offers such repayment options.

3. A private education lender shall not place a loan or account into default or accelerate a loan while a private education loan borrower is seeking a loan modification or enrollment in a modified or flexible repayment plan; except that a lender may place a loan or account into default or accelerate a loan for payment default ninety days after the private education loan borrower's default.

History. Source: L. 2021: Entire part added,(SB 21-057), ch. 378, p. 2524, § 5, effective June 29.