§ 710. Definitions.
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§ 710. Definitions. 1. "Applicant" shall mean any person applying for
a license under this article.
2. "Borrower" shall mean any resident of this state who has received a
student loan or agreed in writing to pay a student loan or any person
who shares a legal obligation with such resident for repaying a student
loan.
3. "Borrower benefit" shall mean an incentive offered to a borrower in
connection with the origination of a student loan, including but not
limited to an interest rate reduction, principal rebate, fee waiver or
rebate, loan cancellation, or cosigner release.
4. "Exempt organization" shall mean any banking organization, foreign
banking corporation, national bank, federal savings association, federal
credit union, or any bank, trust company, savings bank, savings and loan
association, or credit union organized under the laws of any other
state, any public postsecondary educational institution or private
nonprofit postsecondary educational institution or any person licensed
or supervised by the department and exempted by the superintendent
pursuant to regulations promulgated in accordance with this article.
5. "Person" shall mean any individual, association, corporation,
limited liability company, partnership, trust, unincorporated
organization, government, and any other entity.
6. "Servicer" or "student loan servicer" shall mean a person engaged
in the business of servicing student loans owed by one or more borrowers
residing in this state.
7. "Servicing" shall mean:
(a)receiving any payment from a borrower pursuant to the terms of any
student loan;
(b)applying any payment to the borrower's account pursuant to the
terms of a student loan or the contract governing the servicing of any
such loans;
(c)providing any notification of amounts owed on a student loan by or
on account of any borrower in conjunction with performing such
activities as described in paragraphs (a), (b), or
(d)of this
subdivision;
(d)during a period where a borrower is not required to make a payment
on a student loan, maintaining account records for the student loan and
communicating with the borrower regarding the student loan on behalf of
the owner of the student loan promissory note;
(e)interacting with a borrower with respect to or regarding any
attempt to avoid default on the borrower's student loan, or facilitating
the activities described in paragraph
(a)or
(b)of this subdivision in
conjunction with performing such activities as described in paragraphs
(a), (b), or
(d)of this subdivision; or
(f)performing other administrative services with respect to a
borrower's student loan in conjunction with performing such activities
as described in paragraphs (a), (b), or
(d)of this subdivision.
8. "Student loan" shall mean any loan to a borrower to finance
postsecondary education or expenses related to postsecondary education.
9. "Federal student loan" means
(a)any student loan issued pursuant
to the William D. Ford Federal Direct Loan Program;
(b)any student loan
issued pursuant to the Federal Family Education Loan Program, which was
purchased by the government of the United States pursuant to the federal
Ensuring Continued Access to Student Loans Act and is presently owned by
the government of the United States; and
(c)any other student loan
issued pursuant to a federal program that is identified by the
superintendent as a "federal student loan" in a regulation.