Licensing Standards – Student Loan Servicer Applicant

(1) A license to engage in the business of student loan servicer will be issued if the Commissioner, upon review of the application and all other relevant information, determines that all of the requirements of M.G.L. c. 93L, § 2(e) have been met. (2) The Commissioner may deny an application to engage in the business of a student loan servicer, if the Commissioner upon review of the application and other relevant information, determines that the student loan servicer applicant has: (a) failed to satisfy the requirements of M.G.L. c. 93L; (b) violated any applicable provisions of M.G.L. c. 93L or 209 CMR 18.00; (c) violated or engaged in a pattern of violations of any state or federal law applicable to the conduct of the business of a student loan servicer, including, but not limited to, M.G.L. c. 93A and any rule, regulation or administrative order or directive promulgated thereunder; (d) conducted, or will conduct, its business in an unsafe and unsound manner; or (e) engaged in conduct which has resulted in the suspension or revocation of its license to engage in the business of a student loan servicer, or other licensed business, by the licensing authority of this or any other state. (3) A student loan servicer applicant whose application has been denied may appeal the Commissioner's action in accordance with M.G.L. c. 30A and 801 CMR 1.00. (4) A licensed student loan servicer shall notify the Commissioner when it ceases to engage in the business of student loan servicing no later than 15 days after the cessation of business. The student loan servicer shall provide to the Commissioner the location where records are stored and contact information for an individual who will be authorized to provide access to the records.