{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-2602.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-2602.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-2602.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-2602.html"}],"law_id":62840,"edition_id":1,"section_id":62840,"structure_id":12857,"section_number":"6.2-2602","catch_line":"Licensure of qualified education loan servicers; automatic issuance of license for federal student loan servicing contractors","history":"2020, cc. 1198, 1250.","full_text":"A\n\nA person seeking to act as a qualified education loan servicer is exempt from the application procedures described in subsections A and B of § 6.2-2603 upon determination by the Commissioner that the person (i) has an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b), solely to the extent of the person’s actions as a guarantor that engages in averting defaults, or (ii) is a party to a contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f. The Commissioner shall prescribe the procedure to document eligibility for this exemption.B\n\nWith regard to a person exempted from the application procedures described in subsections A and B of \u00a7 6.2-2603 pursuant to subsection A, the Commissioner shall:1\n\nAutomatically issue a license upon payment of the fee required by subsection C of § 6.2-2603 and the providing of the bond required by § 6.2-2604;2\n\nAutomatically renew a license upon payment of the fees required by subsection E of § 6.2-2607; and3\n\nDeem the person to have met all the requirements set forth in subsections A and B of § 6.2-2603.C\n\nA person issued a license pursuant to subdivision B 1:1\n\nIs exempt from subsections A and B of § 6.2-2603; and2\n\nShall comply with the record requirements in § 6.2-2608 except to the extent that the requirements are inconsistent with federal law.D\n\nA person issued a license pursuant to subdivision B 1 shall, within seven days after receiving notification of the expiration, revocation, or termination of (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) any contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, provide the Commissioner with written notice of such expiration, revocation, or termination. Notwithstanding any other provision of this chapter, such person’s license shall automatically expire 30 days after the expiration, revocation, or termination of such person’s contract. A person seeking to act as a qualified education loan servicer following the expiration of its license may apply for a new license by filing an application that meets the requirements of §§ 6.2-2603 and 6.2-2604 and subsection B of § 6.2-2605.E\n\nWith respect to qualified education loan servicing not conducted pursuant to (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) a contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, nothing in this section prevents the Commission from issuing an order to temporarily or permanently prohibit or bar any person from acting as a qualified education loan servicer or violating applicable law.F\n\nIn the case of qualified education loan servicing conducted pursuant to (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) a contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, nothing in this section shall prevent the Commission from issuing a cease and desist order or injunction against any qualified education loan servicer to cease activities in violation of this act.","order_by":null,"text":{"0":{"id":229071,"text":"A person seeking to act as a qualified education loan servicer is exempt from the application procedures described in subsections A and B of § 6.2-2603 upon determination by the Commissioner that the person (i) has an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b), solely to the extent of the person’s actions as a guarantor that engages in averting defaults, or (ii) is a party to a contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f. The Commissioner shall prescribe the procedure to document eligibility for this exemption.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":229072,"text":"With regard to a person exempted from the application procedures described in subsections A and B of \u00a7 6.2-2603 pursuant to subsection A, the Commissioner shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":229073,"text":"Automatically issue a license upon payment of the fee required by subsection C of § 6.2-2603 and the providing of the bond required by § 6.2-2604;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":229074,"text":"Automatically renew a license upon payment of the fees required by subsection E of § 6.2-2607; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":229075,"text":"Deem the person to have met all the requirements set forth in subsections A and B of § 6.2-2603.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":229076,"text":"A person issued a license pursuant to subdivision B 1:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"C1"},"6":{"id":229077,"text":"Is exempt from subsections A and B of § 6.2-2603; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"7":{"id":229078,"text":"Shall comply with the record requirements in § 6.2-2608 except to the extent that the requirements are inconsistent with federal law.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"8":{"id":229079,"text":"A person issued a license pursuant to subdivision B 1 shall, within seven days after receiving notification of the expiration, revocation, or termination of (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) any contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, provide the Commissioner with written notice of such expiration, revocation, or termination. Notwithstanding any other provision of this chapter, such person’s license shall automatically expire 30 days after the expiration, revocation, or termination of such person’s contract. A person seeking to act as a qualified education loan servicer following the expiration of its license may apply for a new license by filing an application that meets the requirements of §§ 6.2-2603 and 6.2-2604 and subsection B of § 6.2-2605.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"9":{"id":229080,"text":"With respect to qualified education loan servicing not conducted pursuant to (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) a contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, nothing in this section prevents the Commission from issuing an order to temporarily or permanently prohibit or bar any person from acting as a qualified education loan servicer or violating applicable law.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"10":{"id":229081,"text":"In the case of qualified education loan servicing conducted pursuant to (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) a contract awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, nothing in this section shall prevent the Commission from issuing a cease and desist order or injunction against any qualified education loan servicer to cease activities in violation of this act.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":12857,"edition_id":1,"name":"Qualified Education Loan Servicers","identifier":"26","label":"chapter","depth":3,"order_by":1,"parent_id":12856,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":267179,"object_type":"structure","relational_id":12857,"identifier":"26","token":"6.2\/IV\/26","url":"\/6.2\/IV\/26\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12856,"edition_id":1,"name":"Other Financial Activities","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":267075,"object_type":"structure","relational_id":12856,"identifier":"IV","token":"6.2\/IV","url":"\/6.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79869,"structure_id":12857,"section_number":"6.2-2600","catch_line":"Definitions","url":"\/6.2-2600\/","token":"6.2\/IV\/26\/6.2-2600","metadata":false},{"id":56387,"structure_id":12857,"section_number":"6.2-2601","catch_line":"License requirement; exceptions","url":"\/6.2-2601\/","token":"6.2\/IV\/26\/6.2-2601","metadata":false},{"id":62840,"structure_id":12857,"section_number":"6.2-2602","catch_line":"Licensure of qualified education loan servicers; automatic issuance of license for federal student loan servicing contractors","url":"\/6.2-2602\/","token":"6.2\/IV\/26\/6.2-2602","metadata":false},{"id":56136,"structure_id":12857,"section_number":"6.2-2603","catch_line":"Application for license; form; content; fee","url":"\/6.2-2603\/","token":"6.2\/IV\/26\/6.2-2603","metadata":false},{"id":86504,"structure_id":12857,"section_number":"6.2-2604","catch_line":"Bond required","url":"\/6.2-2604\/","token":"6.2\/IV\/26\/6.2-2604","metadata":false},{"id":71805,"structure_id":12857,"section_number":"6.2-2605","catch_line":"Investigation of applications","url":"\/6.2-2605\/","token":"6.2\/IV\/26\/6.2-2605","metadata":false},{"id":77205,"structure_id":12857,"section_number":"6.2-2606","catch_line":"Qualifications","url":"\/6.2-2606\/","token":"6.2\/IV\/26\/6.2-2606","metadata":false},{"id":56065,"structure_id":12857,"section_number":"6.2-2607","catch_line":"Licenses; place of business; changes; renewal","url":"\/6.2-2607\/","token":"6.2\/IV\/26\/6.2-2607","metadata":false},{"id":79671,"structure_id":12857,"section_number":"6.2-2608","catch_line":"Retention of records; responding to the Bureau","url":"\/6.2-2608\/","token":"6.2\/IV\/26\/6.2-2608","metadata":false},{"id":76529,"structure_id":12857,"section_number":"6.2-2609","catch_line":"Acquisition of control; application","url":"\/6.2-2609\/","token":"6.2\/IV\/26\/6.2-2609","metadata":false},{"id":82485,"structure_id":12857,"section_number":"6.2-2610","catch_line":"Prohibited activities; compliance with federal laws and regulations","url":"\/6.2-2610\/","token":"6.2\/IV\/26\/6.2-2610","metadata":false},{"id":77018,"structure_id":12857,"section_number":"6.2-2611","catch_line":"Affirmative acts required of qualified education loan servicers","url":"\/6.2-2611\/","token":"6.2\/IV\/26\/6.2-2611","metadata":false},{"id":65901,"structure_id":12857,"section_number":"6.2-2612","catch_line":"Reporting requirements","url":"\/6.2-2612\/","token":"6.2\/IV\/26\/6.2-2612","metadata":false},{"id":80772,"structure_id":12857,"section_number":"6.2-2613","catch_line":"Investigations; examinations","url":"\/6.2-2613\/","token":"6.2\/IV\/26\/6.2-2613","metadata":false},{"id":61083,"structure_id":12857,"section_number":"6.2-2614","catch_line":"Annual fees","url":"\/6.2-2614\/","token":"6.2\/IV\/26\/6.2-2614","metadata":false},{"id":76191,"structure_id":12857,"section_number":"6.2-2615","catch_line":"Suspension or revocation of license","url":"\/6.2-2615\/","token":"6.2\/IV\/26\/6.2-2615","metadata":false},{"id":81753,"structure_id":12857,"section_number":"6.2-2616","catch_line":"Notice of proposed suspension or revocation","url":"\/6.2-2616\/","token":"6.2\/IV\/26\/6.2-2616","metadata":false},{"id":53994,"structure_id":12857,"section_number":"6.2-2617","catch_line":"Cease and desist orders","url":"\/6.2-2617\/","token":"6.2\/IV\/26\/6.2-2617","metadata":false},{"id":63307,"structure_id":12857,"section_number":"6.2-2618","catch_line":"Civil penalties","url":"\/6.2-2618\/","token":"6.2\/IV\/26\/6.2-2618","metadata":false},{"id":79951,"structure_id":12857,"section_number":"6.2-2619","catch_line":"Private cause of action","url":"\/6.2-2619\/","token":"6.2\/IV\/26\/6.2-2619","metadata":false},{"id":63154,"structure_id":12857,"section_number":"6.2-2620","catch_line":"Investigating and restraining prohibited acts","url":"\/6.2-2620\/","token":"6.2\/IV\/26\/6.2-2620","metadata":false},{"id":60246,"structure_id":12857,"section_number":"6.2-2621","catch_line":"Violation of the Virginia Consumer Protection Act","url":"\/6.2-2621\/","token":"6.2\/IV\/26\/6.2-2621","metadata":false},{"id":69784,"structure_id":12857,"section_number":"6.2-2622","catch_line":"Regulations","url":"\/6.2-2622\/","token":"6.2\/IV\/26\/6.2-2622","metadata":false}],"previous_section":{"id":56387,"structure_id":12857,"section_number":"6.2-2601","catch_line":"License requirement; exceptions","url":"\/6.2-2601\/","token":"6.2\/IV\/26\/6.2-2601","metadata":false},"next_section":{"id":56136,"structure_id":12857,"section_number":"6.2-2603","catch_line":"Application for license; form; content; fee","url":"\/6.2-2603\/","token":"6.2\/IV\/26\/6.2-2603","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-2602\/","history_text":"

This law was first created in 2020. The record of its establishment is cataloged in chapters 1198<\/a> and 1250<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":56136,"section_number":"6.2-2603","catch_line":"Application for license; form; content; fee","order_by":null,"url":"\/6.2-2603\/"},{"id":86504,"section_number":"6.2-2604","catch_line":"Bond required","order_by":null,"url":"\/6.2-2604\/"},{"id":56065,"section_number":"6.2-2607","catch_line":"Licenses; place of business; changes; renewal","order_by":null,"url":"\/6.2-2607\/"},{"id":79671,"section_number":"6.2-2608","catch_line":"Retention of records; responding to the Bureau","order_by":null,"url":"\/6.2-2608\/"}],"permalink":{"id":267189,"object_type":"law","relational_id":62840,"identifier":"6.2-2602","token":"6.2\/IV\/26\/6.2-2602","url":"\/6.2-2602\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-2602\/","token":"6.2\/IV\/26\/6.2-2602","dublin_core":{"Title":"Licensure of qualified education loan servicers; automatic issuance of license for federal student loan servicing contractors","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-2602","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A person<\/span> seeking to act as a qualified education loan<\/span> servicer<\/span> is exempt from the application procedures described in subsections A and B of § 6.2-2603<\/a> upon determination by the Commissioner<\/span> that the person<\/span> (i) has an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b), solely to the extent of the person<\/span>’s actions as a guarantor that engages in averting defaults<\/span>, or (ii) is a party<\/span> to a contract<\/span> awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f. The Commissioner<\/span> shall prescribe the procedure to document eligibility for this exemption. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> With regard to a person<\/span> exempted from the application procedures described in subsections A and B of \u00a7 6.2-2603<\/a> pursuant to subsection A, the Commissioner<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Automatically issue<\/span> a license upon payment of the fee required by subsection C of § 6.2-2603<\/a> and the providing of the bond<\/span> required by § 6.2-2604<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Automatically renew a license upon payment of the fees required by subsection E of § 6.2-2607<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Deem the person<\/span> to have met all the requirements set forth in subsections A and B of § 6.2-2603<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A person<\/span> issued a license pursuant to subdivision B 1: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Is exempt from subsections A and B of § 6.2-2603<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Shall comply with the record requirements in § 6.2-2608<\/a> except to the extent that the requirements are inconsistent with federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A person<\/span> issued a license pursuant to subdivision B 1 shall, within seven days after receiving notification of the expiration, revocation<\/span>, or termination of (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) any contract<\/span> awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, provide the Commissioner<\/span> with written notice of such expiration, revocation<\/span>, or termination. Notwithstanding any other provision of this chapter, such person<\/span>’s license shall automatically expire 30 days after the expiration, revocation<\/span>, or termination of such person<\/span>’s contract<\/span>. A person<\/span> seeking to act as a qualified education loan<\/span> servicer<\/span> following the expiration of its license may apply for a new license by filing an application that meets the requirements of §§ 6.2-2603<\/a> and 6.2-2604<\/a> and subsection B of § 6.2-2605<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> With respect to qualified education loan<\/span> servicing not conducted pursuant to (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) a contract<\/span> awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, nothing in this section prevents the Commission<\/span> from issuing an order<\/span> to temporarily or permanently prohibit or bar any person<\/span> from acting as a qualified education loan<\/span> servicer<\/span> or violating applicable law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> In the case of qualified education loan<\/span> servicing conducted pursuant to (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b) or (ii) a contract<\/span> awarded by the U.S. Secretary of Education under 20 U.S.C. § 1087f, nothing in this section shall prevent the Commission<\/span> from issuing a cease and desist order<\/span> or injunction<\/span> against any qualified education loan<\/span> servicer<\/span> to cease activities in violation of this act. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLICENSURE OF QUALIFIED EDUCATION LOAN SERVICERS; AUTOMATIC ISSUANCE OF LICENSE\nFOR FEDERAL STUDENT LOAN SERVICING CONTRACTORS (\u00a7 6.2-2602)\n\nA. A person seeking to act as a qualified education loan servicer is exempt from\nthe application procedures described in subsections A and B of § 6.2-2603\nupon determination by the Commissioner that the person (i) has an agreement with\nthe U.S. Secretary of Education under 20 U.S.C. § 1078(b), solely to the\nextent of the person’s actions as a guarantor that engages in averting\ndefaults, or (ii) is a party to a contract awarded by the U.S. Secretary of\nEducation under 20 U.S.C. § 1087f. The Commissioner shall prescribe the\nprocedure to document eligibility for this exemption.\n\nB. With regard to a person exempted from the application procedures described in\nsubsections A and B of \u00a7 6.2-2603 pursuant to subsection A, the Commissioner\nshall:\n\n 1. Automatically issue a license upon payment of the fee required by\n subsection C of § 6.2-2603 and the providing of the bond required by\n § 6.2-2604;\n\n 2. Automatically renew a license upon payment of the fees required by\n subsection E of § 6.2-2607; and\n\n 3. Deem the person to have met all the requirements set forth in subsections A\n and B of § 6.2-2603.\n\nC. A person issued a license pursuant to subdivision B 1:\n\n 1. Is exempt from subsections A and B of § 6.2-2603; and\n\n 2. Shall comply with the record requirements in § 6.2-2608 except to the\n extent that the requirements are inconsistent with federal law.\n\nD. A person issued a license pursuant to subdivision B 1 shall, within seven\ndays after receiving notification of the expiration, revocation, or termination\nof (i) an agreement with the U.S. Secretary of Education under 20 U.S.C. §\n1078(b) or (ii) any contract awarded by the U.S. Secretary of Education under 20\nU.S.C. § 1087f, provide the Commissioner with written notice of such\nexpiration, revocation, or termination. Notwithstanding any other provision of\nthis chapter, such person’s license shall automatically expire 30 days\nafter the expiration, revocation, or termination of such person’s\ncontract. A person seeking to act as a qualified education loan servicer\nfollowing the expiration of its license may apply for a new license by filing an\napplication that meets the requirements of §§ 6.2-2603 and 6.2-2604\nand subsection B of § 6.2-2605.\n\nE. With respect to qualified education loan servicing not conducted pursuant to\n(i) an agreement with the U.S. Secretary of Education under 20 U.S.C. §\n1078(b) or (ii) a contract awarded by the U.S. Secretary of Education under 20\nU.S.C. § 1087f, nothing in this section prevents the Commission from\nissuing an order to temporarily or permanently prohibit or bar any person from\nacting as a qualified education loan servicer or violating applicable law.\n\nF. In the case of qualified education loan servicing conducted pursuant to (i)\nan agreement with the U.S. Secretary of Education under 20 U.S.C. § 1078(b)\nor (ii) a contract awarded by the U.S. Secretary of Education under 20 U.S.C.\n§ 1087f, nothing in this section shall prevent the Commission from issuing\na cease and desist order or injunction against any qualified education loan\nservicer to cease activities in violation of this act.\n\nHISTORY: 2020, cc. 1198, 1250.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}