209 CMR, § 18.04 - Application Requirements - Automatic Federal Student Loan Servicer Applicant

(1) Application. Each automatic federal student loan servicer applicant shall submit an application on a form prescribed by the Commissioner, containing such information as the Commissioner may from time to time require.

(2) Bond. Upon receipt of the automatic federal student loan servicer license, the automatic federal student loan servicer shall submit a surety bond of $25,000 in such form, and with such sureties, as may be approved by the Commissioner under M.G.L. c. 93L, § 2(f).

(3) Perpetual License. An automatic federal student loan servicer license shall be irrevocable and shall not expire, unless the automatic federal student loan servicer ceases acting as a student loan servicer pursuant to a contract with the United States Secretary of Education under 20 U.S.C. 1087f. On an annual basis, an automatic federal student loan servicer licensee shall verify and attest to its NMLS record, and submit the appropriate NMLS processing fees.

(4) Ceasing of Business. A licensed automatic federal student loan servicer shall notify the Commissioner when it ceases to engage in the business of student loan servicing no later than 15 days after the cessation of business. The automatic federal student loan servicer shall provide to the Commissioner the location where records are stored and contact information for an individual who will be authorized to provide access to the records. An automatic federal student loan servicer license shall immediately expire if the automatic federal student loan servicer is no longer acting as a student loan servicer pursuant to a contract with the United States Secretary of Education under 20 U.S.C. 1087f.

(5) Expiration of License. A licensed automatic federal student loan servicer shall provide written notice to the Commissioner not more than seven business days after receiving notification of the expiration, revocation or termination of a contract awarded by the United States Secretary of Education under 20 U.S.C 1087f. An automatic federal student loan servicer license shall immediately expire if such licensee is no longer acting as a student loan servicer pursuant to a contract with the United States Secretary of Education under said 20 U.S.C. 1087f.

Notes

209 CMR, § 18.04

Amended by Mass Register Issue 1448, eff. 7/1/2021. Amended by Mass Register Issue 1452, eff. 9/17/2021.