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Student Loan Servicer Licensing

Student Loan Servicer Licensing
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Student Loan Servicer Licensing

Banking Law Article 14-A requires that entities servicing student loans held by New York borrowers obtain a license from the Department of Financial Services.

Student loan servicers must submit licensing applications through the Nationwide Multistate Licensing System (NMLS), a secure, web-based, nationwide licensing system. The student loan servicer licensing application can be found on the NMLS website.

Exemptions

Certain entities may be exempt from the licensing requirement of Banking Law Article 14-A. Entities that believe they are exempt should notify the Department by email at [email protected]. The notification should include a detailed description of why the entity believes it is exempt.

Annual Report Filing

All entities with active or pending New York State student loan servicer licenses must submit a completed Annual Report to the Department by May 1, 2022.

Servicers should log in to the DFS Portal to securely transmit the completed report. If you are new to the DFS Portal, Login Instructions are available. To get started, visit the DFS Portal:

Browsers and Blockers

  • Use a supported browser: The latest version plus one previous of IE, FF, Chrome and Safari, are supported.
  • Disable “Pop-up Blocker” setting in your browser before using DFS portal applications.
  • Maintenance: The Portal may be unavailable daily from 7:30am to 7:45am for scheduled maintenance.
  • Applications may not be compatible with cell phones, tablets or other mobile devices.

Note: Submissions must include a completed spreadsheet, a notarized affidavit, and any additional documentation as required.

Annual Report FAQs

The Annual Report template includes a “Definitions” tab that will address many of servicers’ questions about how to complete the Annual Report. Below are answers to additional questions that the Department has received about how to complete the Annual Report. 

Q: We will find it difficult or impossible to provide certain information in the Annual Report. What should we do?

A: Please contact the Department to discuss potential options by reaching out to: [email protected].

Q: Our license application has not yet been approved. Do we need to complete the Annual Report?

A: Yes. As a general reminder, entities with pending student loan servicer license applications have been granted temporary licenses and are required to abide by the obligations of student loan servicers licensed in New York State. See 3 NYCRR § 409.4.

Q. Should responses include data for New York State borrowers only?

A. Yes, please provide responses as they apply to borrowers who reside in New York State. To the extent a servicer may not have historical data on when borrowers may have moved in or out of New York, servicers may provide data as applied either to borrowers who currently live in New York State or to borrowers who resided in New York State during the relevant response period.

Q. For 6.1.2.0.0.0 (Number of Borrower Inbound Contacts) and its sub-requests, should we count multiple contacts by the same borrower in the same reporting period as one or multiple contacts?

A. Please include all contacts. Multiple contacts from the same borrower should count multiple times.

Questions?

If you have a question about this license or filing, and it is not addressed in our FAQs, send an email to [email protected].