The licenses, required under legislation approved in 2019, are due by the end of the year.
9/3/2020 14:30
The New Jersey Department of Banking and Insurance applications for student loan servicing licenses will be available online starting Sept. 15.
The department has issued a bulletin on the new license applications, which are required by the New Jersey “Student Loan Bill of Rights” that took effect in November 2019.
“On Sept. 15, 2020, the department will begin to accept license submissions from all persons subject to the act’s licensing requirements, through use of the Nationwide Multistate Licensing System,” according to the bulletin. “The act also imposes various regulatory obligations on student loan servicers, including entities that are exempt from the licensure requirement, and provides the department with the appropriate investigative, examination and enforcement authority to implement the regulatory framework.”
Under the legislation, the department will also appoint a student loan ombudsman to help student loan borrowers with understanding loan agreements and dispute resolution.
Student loan servicing licenses will have to be renewed on an annual basis and servicers licensed in New Jersey and those exempt from the licensing requirements will need to keep records of all student loan education reports for two years after payoff or assignment, whichever occurs first.
Current student loan servicers in New Jersey that submit license applications before close of business on Dec. 31, 2020, may continue to operate as student loan servicers pending the Department of Banking and Insurance’s approval of the license forms.
Read the complete bulletin for more guidance on student loan servicing requirements.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.