N.Y. Comp. Codes R. & Regs. Tit. 3 § 409.1 - Definitions
(a) "Applicant"
shall mean any person applying for a license under this part.
(b) "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.
(c)
"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.
(d) "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; the New York State higher
education services corporation; and any entity that holds a license under
articles nine or eleven-b of the banking law.
(e) "NMLS" means the Nationwide Multistate
Licensing System & Registry and shall include all related computer systems,
the Conference of State Bank Supervisors, and State Regulatory Registry
LLC.
(f) "Nonconforming payment"
shall mean an overpayment or a partial payment.
(g) "Overpayment" shall mean a payment on a
student loan in excess of the total monthly amount due from a borrower on a
student loan, also commonly referred to as a prepayment.
(h) "Partial payment" shall mean a payment on
a student loan in an amount less than the monthly amount due from a borrower on
a student loan, also commonly referred to as an underpayment.
(i) "Person" shall mean any individual,
association, corporation, limited liability company, partnership, trust,
unincorporated organization, government, or any other entity.
(j) "Student loan servicer" shall mean a
person engaged in the business of servicing student loans owed by one or more
borrowers.
(k)
(1) "Servicing" shall mean:
(i) receiving any payment from a borrower
pursuant to the terms of any student loan; or
(ii) 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 loan; or
(iii) 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; or
(iv) in conjunction with performing the
activities described in subparagraphs (i), (ii), and (iii) of this paragraph:
(a) providing any notification of amounts
owed on a student loan by or on account of any borrower;
(b) performing other administrative services
with respect to a borrower's student loan; or
(c) interacting with a borrower with respect
to or regarding any attempt to avoid default on the borrower's student loan and
facilitating the activities described in subparagraph (i) or (ii) of this
paragraph.
(2) "Servicing" shall not include collecting,
or attempting to collect, on a Direct Loan or FFELP Loan for which no payment
has been received for 270 days or more, a Perkins Loan in default, or on a
private student loan in default according to the terms of the loan
documents.
(l) "Student
loan" shall mean any loan to a borrower to finance postsecondary education or
expenses related to postsecondary education. The term shall not include an
extension of credit under an open-end consumer credit plan, a reverse mortgage
transaction, a residential mortgage transaction, or any other loan that is
secured by real property or a dwelling.
(m) "Federal student loan" means:
(1) any Direct Loan;
(2) any FFELP Loan, 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
(3) any other
student loan which is owned by the government of the United States.
(n) "Direct Loan" means any
student loan made under the William D. Ford Federal Direct Loan Program,
authorized under Title IV of the Higher Education Act, as amended
(20 U.S.C. §
1070, et seq.).
(o) "FFELP Loan" means any student loan made
under the Federal Family Education Loan Program, authorized under Title IV of
the Higher Education Act, as amended (20 U.S.C. §
1070, et seq.).
(p) "Perkins Loan" means any Federal Perkins
Loan, authorized under Title IV of the Higher Education Act, as amended
(20 U.S.C., §
1070, et seq.).
(q) "Private student loan" means a student
loan which is not a Direct Loan, FFELP Loan, or Perkins Loan but, rather, a
private student loan made by a lender.
Notes
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