§ 710 — Definitions

§ 710. Definitions. 1. "Applicant" shall mean any person applying for\na license under this article.\n 2. "Borrower" shall mean any resident of this state who has received a\nstudent loan or agreed in writing to pay a student loan or any person\nwho shares a legal obligation with such resident for repaying a student\nloan.\n 3. "Borrower benefit" shall mean an incentive offered to a borrower in\nconnection with the origination of a student loan, including but not\nlimited to an interest rate reduction, principal rebate, fee waiver or\nrebate, loan cancellation, or cosigner release.\n 4. "Exempt organization" shall mean any banking organization, foreign\nbanking corporation, national bank, federal savings association, federal\ncredit union, or any bank, trust company, savings bank, savings and loan\nassociation, or credit union organized under the laws of any other\nstate, any public postsecondary educational institution or private\nnonprofit postsecondary educational institution or any person licensed\nor supervised by the department and exempted by the superintendent\npursuant to regulations promulgated in accordance with this article.\n 5. "Person" shall mean any individual, association, corporation,\nlimited liability company, partnership, trust, unincorporated\norganization, government, and any other entity.\n 6. "Servicer" or "student loan servicer" shall mean a person engaged\nin the business of servicing student loans owed by one or more borrowers\nresiding in this state.\n 7. "Servicing" shall mean:\n (a) receiving any payment from a borrower pursuant to the terms of any\nstudent loan;\n (b) applying any payment to the borrower's account pursuant to the\nterms of a student loan or the contract governing the servicing of any\nsuch loans;\n (c) providing any notification of amounts owed on a student loan by or\non account of any borrower in conjunction with performing such\nactivities as described in paragraphs (a), (b), or (d) of this\nsubdivision;\n (d) during a period where a borrower is not required to make a payment\non a student loan, maintaining account records for the student loan and\ncommunicating with the borrower regarding the student loan on behalf of\nthe owner of the student loan promissory note;\n (e) interacting with a borrower with respect to or regarding any\nattempt to avoid default on the borrower's student loan, or facilitating\nthe activities described in paragraph (a) or (b) of this subdivision in\nconjunction with performing such activities as described in paragraphs\n(a), (b), or (d) of this subdivision; or\n (f) performing other administrative services with respect to a\nborrower's student loan in conjunction with performing such activities\nas described in paragraphs (a), (b), or (d) of this subdivision.\n 8. "Student loan" shall mean any loan to a borrower to finance\npostsecondary education or expenses related to postsecondary education.\n 9. "Federal student loan" means (a) any student loan issued pursuant\nto the William D. Ford Federal Direct Loan Program; (b) any student loan\nissued pursuant to the Federal Family Education Loan Program, which was\npurchased by the government of the United States pursuant to the federal\nEnsuring Continued Access to Student Loans Act and is presently owned by\nthe government of the United States; and (c) any other student loan\nissued pursuant to a federal program that is identified by the\nsuperintendent as a "federal student loan" in a regulation.\n