                                 CODE OF VIRGINIA

LICENSURE OF QUALIFIED EDUCATION LOAN SERVICERS; AUTOMATIC ISSUANCE OF LICENSE
FOR FEDERAL STUDENT LOAN SERVICING CONTRACTORS (§ 6.2-2602)

A. A person seeking to act as a qualified education loan servicer is exempt from
the application procedures described in subsections A and B of &#xA7; 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. &#xA7; 1078(b), solely to the
extent of the person&#8217;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. &#xA7; 1087f. The Commissioner shall prescribe the
procedure to document eligibility for this exemption.

B. With regard to a person exempted from the application procedures described in
subsections A and B of § 6.2-2603 pursuant to subsection A, the Commissioner
shall:

   1. Automatically issue a license upon payment of the fee required by
   subsection C of &#xA7; 6.2-2603 and the providing of the bond required by
   &#xA7; 6.2-2604;

   2. Automatically renew a license upon payment of the fees required by
   subsection E of &#xA7; 6.2-2607; and

   3. Deem the person to have met all the requirements set forth in subsections A
   and B of &#xA7; 6.2-2603.

C. A person issued a license pursuant to subdivision B 1:

   1. Is exempt from subsections A and B of &#xA7; 6.2-2603; and

   2. Shall comply with the record requirements in &#xA7; 6.2-2608 except to the
   extent that the requirements are inconsistent with federal law.

D. 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. &#xA7;
1078(b) or (ii) any contract awarded by the U.S. Secretary of Education under 20
U.S.C. &#xA7; 1087f, provide the Commissioner with written notice of such
expiration, revocation, or termination. Notwithstanding any other provision of
this chapter, such person&#8217;s license shall automatically expire 30 days
after the expiration, revocation, or termination of such person&#8217;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 &#xA7;&#xA7; 6.2-2603 and 6.2-2604
and subsection B of &#xA7; 6.2-2605.

E. 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. &#xA7;
1078(b) or (ii) a contract awarded by the U.S. Secretary of Education under 20
U.S.C. &#xA7; 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. 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. &#xA7; 1078(b)
or (ii) a contract awarded by the U.S. Secretary of Education under 20 U.S.C.
&#xA7; 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.

HISTORY: 2020, cc. 1198, 1250.