The Colorado Attorney General’s Office recently published licensing applications for entities that are engaged in servicing student loans owed by Colorado residents.
There are two types of applications available: (1) a short “form” for “Federal Contractors” who hold a contract awarded by the U.S. Secretary of Education to service federal student loans; and (2) a longer “application” for all “Other Servicers” who are not federal student loan servicing contractors.
The short form requires a servicer to submit the signature page from its government contract, to indicate the types of servicing activities in which it engages, to provide some basic information about the company, and to designate contacts for examinations and complaints as well as the entity’s general mailing address.
The longer application requires more detailed information, such as personal affidavits (from each owner, partner, member, officer, director, and principal employee), a financial statement, trade name affidavit, business location list, and copies of the entity’s formation documents (articles of incorporation, certificate of organization, or partnership agreement) along with certificates of authority or good standing or a statement of foreign entity authority.
While not explicitly expressed, presumably, those who service student loans under both federal and private contracts may apply as a “Federal Contractor” with the short form. That seems to be the result contemplated by the instructions for the longer application.
Both applications require a $12,500 licensing fee; however, those applying as “Other Servicers” are also required to submit a $500 one-time investigation fee. The license must be renewed annually by January 31st of each year. Such renewal forms will be posted online at a later date.
Under the Colorado statute, student loan servicers must be licensed by January 31, 2020. Thus, the Colorado regulators recommend that licensing applications and forms be submitted on or before January 1, 2020 to meet the deadline.