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Student Loan Servicers
Student Loan Servicers
Student loan servicers are responsible for the servicing of any student loan to any borrower, and they include any nonbank covered person as defined under federal regulation.
- Minnesota uses the Nationwide Multistate Licensing System (NMLS). Persons applying for the student loan servicer license are required to use the NMLS.
- There are two checklists on the NMLS for student loan servicers. There is a regular application checklist titled “student loan servicer license”, and a separate one titled “student loan services – federal contract” for those applicants who can document that they are servicing student loans pursuant to a contract awarded by the United States Secretary of Education.
- Please note that there is also a student loan servicer branch license for those persons who wish to service student loans at multiple places of business.
- Please read Minnesota Statutes Chapter 58B, which you can access before applying for a license.
- Total initial application fee is $1,000.
- Licenses issued under Minnesota Statutes Chapter 58B expire annually on December 31 and are renewable by January 1 of each year.
- The renewal fee is $500.
- Surrender of a license can be requested through the NMLS.
- The written notification will need to include a plan for withdrawal from student loan servicing as listed on the surrender checklist, including a timetable for the disposition of the student loans being serviced.
The following persons are exempt from the requirements of this chapter:
- a financial institution (defined as any of the following organized under the laws of this state, any other state, or the United States: a bank, bank and trust, trust company with banking powers, savings bank, savings association, or credit union)
- a person servicing student loans made with the person's own funds, if no more than three student loans are made in any 12-month period
- an agency, instrumentality, or political subdivision of this state that makes, services, or guarantees student loans
- a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a specific order issued by a court of competent jurisdiction
- the University of Minnesota