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AB 1074

Relating to: student loans for postsecondary education, requirements related to student loan servicers, creating an office of the student loan ombudsman in the Department of Financial Institutions, granting rule-making authority, and making an appropriation. (FE)

2025-2026 Regular Session Introduced by Clint Anderson and 20 co-sponsors

Creates an Office of the Student Loan Ombudsman within the Wisconsin DFI to oversee and resolve borrower complaints and regulate loan servicers.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · AB 1074

Summary of Wisconsin Assembly Bill 1074 (Session 2025)

1) Purpose and Intent

  • AB 1074 relates to student loans for postsecondary education, with a focus on oversight and administration of student loan servicing, and the creation of an Office of the Student Loan Ombudsman within the Wisconsin Department of Financial Institutions (DFI).
  • The bill also provides for rule-making authority and includes an appropriation to support these initiatives.

2) Key Provisions and Changes

  • Student Loans for Postsecondary Education

    • Establishes or governs specific provisions surrounding student loans offered for postsecondary education in Wisconsin. While the exact loan program details are not fully listed in the summary, the bill centers on improving administration, oversight, and consumer protections related to these loans.

  • Requirements Related to Student Loan Servicers

    • Imposes or clarifies requirements on entities that service student loans (i.e., the entities that collect payments, manage accounts, and provide related services for lenders or programs).
    • Likely aims to ensure transparency, fair dealing, and accountability of loan servicers operating in Wisconsin.

  • Office of the Student Loan Ombudsman (within the Department of Financial Institutions)

    • Creates or designates an Office of the Student Loan Ombudsman within the Wisconsin DFI.
    • The ombudsman would serve as an advocacy and complaint-resolution resource for borrowers, assisting with issues related to student loan servicing and program administration.
    • Responsibilities may include handling borrower inquiries, mediating disputes with servicers, and providing public information about loan programs and protections.

  • Rule-Making Authority

    • Grants the Department of Financial Institutions authority to promulgate rules necessary to implement and enforce the bill’s provisions.
    • This enables more detailed regulatory guidance beyond the statute, including standards for servicers, complaint procedures, and the operations of the ombudsman office.

  • Appropriation

    • Includes an appropriation to fund the new office, staffing, and associated regulatory activities.
    • The allocation would support operations of the ombudsman, enforcement of servicer requirements, and related administrative costs.

3) Who or What Is Affected

  • Borrowers/Students in Wisconsin

    • Individuals with student loans for postsecondary education could benefit from enhanced protections, clearer complaint pathways, and improved oversight of loan servicing practices.

  • Student Loan Servicers

    • Entities that service student loans in Wisconsin would be subject to new requirements, standards, and accountability measures.
    • They would interact with the new ombudsman and must comply with regulations established by DFI.

  • Department of Financial Institutions (DFI)

    • DFI would oversee the new regulatory framework, operate the Office of the Student Loan Ombudsman, and enforce compliance among servicers.

4) Procedural and Timeline Aspects

  • Introduction and Sponsorship

    • Introduced February 26, 2026.
    • Co-authored by a broad slate of representatives and senators (list of sponsors provided in the bill’s materials).

  • Committee Action

    • Referred to the Assembly Committee on Colleges and Universities (initial stage in the legislative process).
    • A fiscal estimate was delivered on March 11, 2026, indicating budgetary implications.

  • Current Status (as of available materials)

    • The bill has undergone initial readings and committee referral; additional legislative actions would determine advancement, potential amendments, and floor consideration.
    • Noted activity includes a past notation “Failed to pass pursuant to Senate Joint Resolution 1” on March 23, 2026, which may reflect procedural outcomes or a placeholder in the action history rather than a final disposition of the bill. (If pursuing final passage, the status would depend on subsequent votes or reconciliations.)

5) Additional Notes

  • The bill’s emphasis on an ombudsman suggests a taxpayer- and consumer-protection orientation, aiming to streamline borrower assistance and accountability in student loan servicing.
  • Specific dollar amounts, timelines for implementation, and detailed regulatory standards would be defined in the final text and subsequent rule-making, once enacted.

If you’d like, I can tailor this summary to a specific audience (policy staff, borrowers, lenders) or pull out exact sections once the final bill text is available.

Compiled from official sources — confirm details with the bill’s official record.

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