Virginia and Massachusetts recently added student loan servicer-related licenses to the Nationwide Multistate Licensing System (NMLS).
In 2020, Virginia enacted a law that, among other things, requires qualified education loan servicers to be licensed on and after July 1, 2021. In Virginia, a “qualified education loan servicer” means any person who services a student loan to a qualified education loan borrower, including a loan made to refinance a qualified education loan. Additionally, “qualified education loan” is defined as any loan primarily used to finance a postsecondary education and costs of attendance at a postsecondary public or private educational institution. As noted above, the Virginia Qualified Education Loan Servicer License is now available through the NMLS.
Similarly, in January 2021, Massachusetts enacted a law that, among other things, requires student loan servicers to be licensed. Note a “student loan servicer” is defined as any person responsible for servicing a student loan to a student loan borrower. Moreover, “student loan” means a loan primarily used to finance postsecondary education or other school-related expenses. The new licensing requirement goes into effect on July 1, 2021, and, as indicated above, the Student Loan Servicer License application is now available through the NMLS.