§ 1090.106 Student loan servicing market. ( a ) *Market-related definitions.* As used in this subpart: *Account volume* means the number of accounts with respect to which a nonbank covered person is considered to perform student loan servicing, calculated as follows: ( i ) *Number of accounts.* A nonbank covered person has at least one account for each student or prior student with respect to whom the nonbank covered person performs student loan servicing. If a nonbank covered person is receiving separate fees for performing student loan servicing with respect to a given student or prior student, the nonbank covered person has one account for each stream of fees to which the person is entitled.
( ii ) *Time of measurement.* The number of accounts is counted as of December 31 of the prior calendar year.
( iii ) *Affiliated companies.* ( A ) The account volume of a nonbank covered person is the sum of the number of accounts of that nonbank covered person and of any affiliated companies of that person.
( B ) If two persons become affiliated companies, each person's number of accounts as of the prior calendar year's December 31 is included in the total account volume.
( C ) If two affiliated companies cease to be affiliated companies, the number of accounts of each continues to be included in the other's account volume until the succeeding December 31.
*Post-secondary education expenses* means any of the expenses that are included as part of the cost of attendance of a student as defined in 20 U.S.C. 1087 *ll.*
*Post-secondary education loan* means a loan that is made, insured or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 *et seq.*) or that is extended to a consumer with the expectation that the funds extended will be used in whole or in part to pay post-secondary education expenses. A loan that is extended in order to refinance or consolidate a consumer's existing post-secondary education loans is also a post-secondary education loan. However, no loan under an open-end credit plan (as defined in Regulation Z, 12 CFR 1026.2(a)(20)) or loan that is secured by real property is a post-secondary education loan, regardless of the purpose for the loan.
*Student loan servicing* means: ( i ) ( A ) Receiving any scheduled periodic payments from a borrower or notification of such payments and
( B ) Applying payments to the borrower's account pursuant to the terms of the post-secondary education loan or of the contract governing the servicing;
( ii ) During a period when no payment is required on a post-secondary education loan, ( A ) Maintaining account records for the loan and
( B ) Communicating with the borrower regarding the loan, on behalf of the loan's holder; or
( iii ) Interactions with a borrower, including activities to help prevent default on obligations arising from post-secondary education loans, conducted to facilitate the activities described in paragraph (i) or (ii) of this definition.
( b ) *Test to define larger participants.* A nonbank covered person that offers or provides student loan servicing is a larger participant of the student loan servicing market if the nonbank covered person's account volume exceeds one million.
[78 FR 73406, Dec. 6, 2013]