Student Loan Bill of Rights

Bottom Line

This legislation would create an “Office of the Student Loan Ombudsman” within the Department of Higher Education. The office will:

  • Resolve complaints from student loan borrowers
  • Compile and analyze data on student loan borrower complaints 
  • Assist student loan borrowers to understand their rights
  • Provide information regarding the problems and concerns of student loan borrowers and make recommendations for resolving those problems and concerns
  • Advertise the services of the student loan ombudsman
  • Establish and maintain a student loan borrower education course that will include educational materials regarding student education loans.

This legislation creates a rigorous application process for student loan servicers in the state of Missouri, and allows the Missouri Department of Higher Education to investigate student loan servicers.

Key Details

Legislation: HB 1429

Fiscal Impact: Unknown

Progress in prior session: Referred to Higher Education Committee

States with Similar Legislation: CO, DC, IL, ME, MD, MI, NY, NV, VA, WA


There is a Federal Student Loan Ombudsman through the U.S. Department of Education that handles Federal Student Loans. There is also a Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman that handles private student loans. There is not currently an office dedicated to help Missouri students with loan borrowing, refinancing, etc. There are resources on the Missouri Department of Higher Education Website for student loan borrowers, but the education around student loans needs to be expanded substantially. 

Relevance to the UM System Student Body

  • Most students taking out loans are sound 18 years old, and they may be unaware of the student loan landscape. They often do not know their rights as student loan borrowers, and it is easy for vendors to take advantage of them without any consequences.
  • Roughly 2/3 of Missouri students who go to a 4-year institution end up with an average of $27,425 in student loan debt. 
  • 51% of UM System students took out a student loan to support their higher education in 2019 (2019 ASUM Annual Student Issues Survey).