CHAPTER 23. STUDENT LOAN SERVICERS

§1411. Definitions

            As used in this Chapter, the following terms have the following meanings:

            (1) "Nonconforming payment" means a payment made by a student loan borrower that is more or less than the required payment for a student education loan account.

            (2) "Service" or "servicing" means:

            (a) Receiving any scheduled periodic payments from a student loan borrower or notification of such payments and applying payments to the student loan borrower's account pursuant to the terms of the student education loan or a governing contract.

            (b) Maintaining account records for the loan and communicating with the student loan borrower regarding the loan, on behalf of the loan's holder, during a period when no payment is required on a student education loan.

            (c) Interactions with a student loan borrower, including activities to help prevent default on obligations arising from student education loans, conducted to facilitate the activities described in Subparagraphs (a) and (b) of this Paragraph.

            (3)(a) "Student education loan" means any of the following:

            (i) A loan that is made, insured, or guaranteed under Title IV of the Higher Education Act of 1965, as amended.

            (ii) A loan that is extended to an individual with the express expectation that the funds extended shall be used in whole or in part to pay expenses that are included as part of the cost of attendance of a student as defined in 20 U.S.C. 1087, regardless of whether the loan is provided through the educational institution that the student loan borrower attends or directly to the student loan borrower from the lender.

            (iii) A loan that is extended in order to refinance or consolidate a consumer's existing student education loan.

            (b) The term does not include any of the following, regardless of the purpose for the loan:

            (i) A loan under an open-end credit plan as defined in 12 CFR 1026.2.

            (ii) A loan secured by real property.

            (4) "Student loan borrower" means a resident of this state who meets either of the following criteria:

            (a) Has received or agreed to pay a student education loan.

            (b) Shares repayment responsibility with a resident described in Subparagraph (a) of this Paragraph.

            (5) "Student loan servicer" means a person or entity who is engaged in the business of servicing a student education loan owed by a student loan borrower.

            Acts 2022, No. 710, §1.