2023 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.