NY Banking L § 721 (2021)
2021 New York Laws BNK - Banking Article 14-A - Student Loan Servicers 721 - Responsibilities.

§  721.  Responsibilities.  1.  If  a  student loan servicer regularly reports information to a consumer reporting agency, the  servicer  shall accurately  report  a  borrower's  payment  performance  to at least one consumer reporting agency that compiles and maintains files on consumers on a nationwide basis as defined in Section 603(p) of the  federal  Fair Credit  Reporting  Act  (15  U.S.C. Sec. 1681a(p)), upon acceptance as a data furnisher by that consumer reporting agency.   2. (a) Except as provided in federal law or required by a student loan agreement, a student loan servicer shall inquire of a  borrower  how  to apply  a borrower's nonconforming payment. A borrower's direction on how to apply a nonconforming payment shall remain in effect for  any  future nonconforming  payment  during  the  term  of  a  student loan until the borrower provides different directions.  (b) For purposes of this subdivision,  "nonconforming  payment"  shall mean  a payment that is either more or less than the borrower's required student loan payment.   3. (a) If the sale, assignment, or other transfer of the servicing  of a student loan results in a change in the identity of the person to whom the  borrower  is  required  to  send  subsequent payments or direct any communications concerning the student  loan,  a  student  loan  servicer shall  transfer  all  information  regarding  a  borrower,  a borrower's account, and a borrower's student loan, including but not limited to the borrower's repayment status and any borrower  benefits  associated  with the  borrower's student loan, to the new student loan servicer servicing the borrower's student loan within forty-five days.  (b) A student loan servicer shall adopt  policies  and  procedures  to verify  that  it  has  received  all information regarding a borrower, a borrower's account, and a borrower's student  loan,  including  but  not limited  to  the  borrower's  repayment status and any borrower benefits associated with the borrower's student loan, when the  servicer  obtains the right to service a student loan.   4.  If  a student loan servicer sells, assigns, or otherwise transfers the servicing of a student loan to a new servicer, the sale,  assignment or  other  transfer  shall  be  completed at least seven days before the borrower's next payment is due.   5. (a) A student loan  servicer  that  sells,  assigns,  or  otherwise transfers  the  servicing of a student loan shall require as a condition of such sale, assignment or other transfer that  the  new  student  loan servicer  shall  honor  all  borrower benefits originally represented as being available to a borrower during the repayment of the  student  loan and  the  possibility of such benefits, including any benefits that were represented as being available but for which the borrower  had  not  yet qualified.  (b)  A  student  loan  servicer  that  obtains  the right to service a student loan shall honor all borrower benefits originally represented as being available to a borrower during the repayment of the  student  loan and  the  possibility of such benefits, including any benefits that were represented as being available but for which the borrower  had  not  yet qualified.   6.  A  student  loan  servicer  shall respond within thirty days after receipt  to  a  written  inquiry  from  a  borrower  or   a   borrower's representative.   7. A student loan servicer shall preserve records of each student loan and  all  communications  with  borrowers  for  not  less than two years following the final payment on such student loan or the sale, assignment or other transfer of the  servicing  of  such  student  loan,  whichever occurs  first,  or  such  longer  period as may be required by any other provision of law.