AI-assisted research summary: Some student-loan and education-payment contracts tied to postsecondary education are restricted, and lending agencies must mark covered debt instruments “Student Loan.”
If the person to whom educational services are to be rendered or furnished by a postsecondary educational institution is a resident of this state at the time any contract relating to payment for the services, or any note, instrument or other evidence of indebtedness relating to the contract, is entered into, this subsection (a) shall govern the rights of the parties to the contract or evidence of indebtedness. In such event the following agreements entered into in connection with the contract or the giving of such evidence of indebtedness are invalid: That the law of another state shall apply; That the maker or any person liable on such contract or evidence of indebtedness consents to the jurisdiction of another state; That another person is authorized to confess judgment on the contract or evidence of indebtedness; or That fixes venue. No note, instrument or other evidence of indebtedness or contract relating to payment for education or educational services shall be enforceable in the courts of this state by any postsecondary educational institution operating in this state, unless the institution has received authorization to operate under this part, nor by any postsecondary educational institution having an agent or agents in this state, unless any and all agents who enrolled or sought to enroll the person to whom the services were to be rendered or to whom educational credentials were to be granted, had an agent's permit at the time of their contract with the person. For purposes of this subsection (b), “lending agency” means any postsecondary educational institution, or any person, group or entity controlling, controlled by or held in common ownership with the institution, or regularly loaning money to, or to students of, the institution. Any lending agency extending credit or loaning money to any person for tuition, fees or any charges whatever of a postsecondary educational institution for educational or other services or facilities to be rendered or furnished by the institution, shall cause any note, instrument or other evidence of indebtedness taken in connection with the loan or extension of credit to be conspicuously marked on the face of the note, instrument or other evidence of indebtedness, “Student Loan.” A lending agency that fails to do so is liable for any loss or damage suffered or incurred by any subsequent assignee, transferee or holder of the evidence of indebtedness on account of the absence of the notation.