New Jersey Federal Contract Student Loan Servicer License

GENERAL INFORMATION Who is required to have this license? This limited purpose branch license is applicable to the extent that the student loan servicing performed by this branch is conducted pursuant to a contract awarded by the United States Secretary of Education under 20 U.S.C. s.1087f. Any student loan servicer that services non-federal student loans must apply for the New Jersey Student Loan Servicer license. A student loan servicer is any person, wherever located, responsible for the receiving any scheduled periodic payments from a student loan borrower or notification of such payments, and applying payments to the borrower’s account pursuant to the terms of the student education loan or the contract governing the servicing of the loan; b. during a period when no payment is required on the student education loan, maintaining account records for the loan and communicating with the student loan borrower regarding the loan, on behalf of the holder of the loan; or c. interacting with a student loan borrower to facilitate the loan servicing as described in this definition, including activities to help prevent loan default on obligations arising from a student education loan of any student education loan to any student loan borrower. Companies and branches applying through NMLS with the New Jersey Department of Banking and Insurance (DOBI) must agree to abide by NMLS requirements, including attesting to the accuracy of the information submitted, agreeing to keep it updated through NMLS, and annually renewing the registration through the NMLS Streamlined Renewal Process. Branches must be registered by submission of a completed Branch Form (MU3). This license should only be applied for by a company that also holds or is applying for a New Jersey Federal Contract Student Loan Servicer license. The governing statute for the NJ Federal Contract Student Loan Servicer license is the Student Loan Servicing Act, N.J.S.A. 17:16ZZ-1 TO -18. Who Does Not Need to Have This License? • Any state or federally chartered bank, savings bank, savings and loan association or credit union. (N.J.S.A. 17:16ZZ-4(a)(2)(a)). • Any wholly owned subsidiary of any bank or credit union. (N.J.S.A. 17:16ZZ-4(a)(2)(b)). • Any operating subsidiary where each owner of the operating subsidiary is wholly owned by the same bank or credit union. (N.J.S.A. 17:16ZZ-4(a)(2)(c)). Activities Authorized Under This License This license authorizes the following activities… • Non-private student loan lending Pre-Requisites for License Applications • A contract awarded by the United States Secretary of Education under 20 U.S.C. s.1087f. The New Jersey Department of Banking and Insurance does not issue paper licenses for this license type.