As used in this subtitle, unless the context requires otherwise:
(1) “Affiliate” means any person who directly, or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person;
(2) “Applicant” means a person filing an application or renewal application for a license under this subtitle;
(3) “Borrower” means a person who:
(a) Has received, or agreed to pay, a student education loan; or
(b) Shares responsibility for repaying a student education loan with a person described in paragraph (a) of this subsection;
(4) “Borrower with a disability” means a borrower who the servicer knows, or reasonably should know, is a person who has a documented disability;
(5) “Borrower working in public service” means a borrower who is employed in a public service job as defined in the Higher Education Act, 20 U.S.C. § 1087e(m), as amended, and administrative regulations promulgated thereunder;
(6) “Control” means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise;
(7) “Director” means a person appointed or elected to sit on a board that manages the affairs of a corporation or other organization by electing and exercising control over its officers;
(8) “In this state” means any activity of a person relating to servicing student education loans that originates:
(a) Inside this state and is directed to persons inside or outside this state; or
(b) Outside this state and is directed to persons inside this state;
(9) “Licensee” means a person licensed as a student education loan servicer under this subtitle;
(10) “Managing officer” means a natural person responsible for overseeing daily operations of a licensee;
(11) “Military borrower” means a borrower who is:
(a) A service member, as defined in the Service Member Civil Relief Act, 50
U.S.C. sec. 3911, as amended;
(b) A veteran, as defined in 38 U.S.C. § 101, as amended; or
(c) Any other member or veteran of the United States Armed Forces, including the National Guard and any reserve component of the United States Armed Forces;
(12) “Student education loan” means any loan to a borrower to finance postsecondary education or expenses related to postsecondary education;
(13) “Student education loan servicer” or “servicer”:
(a) Means a person engaged in the business of servicing student education loans in this state; and
(b) Includes licensees and persons that are exempt from licensure under this subtitle; and
(14) “Student education loan servicing” or “servicing” means participating in any of the following activities related to a student education loan:
(a) Performing both of the following:
1. Receiving:
a. Payments from a borrower; or
b. Notification that a borrower made a scheduled periodic payment;
and
2. Applying payments to the borrower’s account pursuant to the terms of a student education loan or the contract governing the servicing of the loan;
(b) During a period when no payment is required on a student education loan, performing both of the following:
1. Maintaining account records for the student education loan; and
2. Communicating with the borrower regarding the student education loan on behalf of the owner of the student education loan promissory note;
(c) Communicating with a borrower regarding the borrower’s student education loan with the goal of facilitating the borrower to:
1. Make payments on the student education; or
2. Apply for a qualified forebearance program; or
(d) Facilitating the activities described in paragraph (a) or (b) of this subsection.
Effective: July 14, 2022
History: Created 2022 Ky. Acts ch. 88, sec. 2, effective July 14, 2022.