Student Loan Servicer Licensing Resources

New York’s FY 2020 Enacted Budget included legislation that requires entities servicing student loans held by New York borrowers to obtain a license from the Department of Financial Services. The law, Banking Law Article 14-A, is now in effect.

Student loan servicers must submit their licensing applications through the Nationwide Multistate Licensing System (NMLS), a secure, web-based, nationwide licensing system.   Please find the student loan servicer licensing application link here.

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

In light of the COVID-19 public health emergency, the Department originally extended the deadline for student loan servicers to file the 2020 Annual Report from April 15, 2020 to July 1, 2020.  The Department has further extended the deadline to July 31, 2020.

Because Section 3513 of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provides temporary relief for certain loans through September 30, 2020, as well as the challenges of the continued public health emergency, the Department has limited the scope of the 2020 Annual Report to loans not covered by the CARES Act.

The template for the 2020 Annual Report is available here. All entities with active or pending New York State student loan servicer licenses must submit a completed Annual Report to the Department by July 1, 2020. Servicers should log in to the DFS Portal Homepage to securely transmit the completed report. Please note that responses must include a completed spreadsheet, a notarized affidavit, and any additional documentation as required.

Questions

You may contact the Department with questions about this license by emailing [email protected].