Bill > A08067

This bill modifies an existing exemption in New York's banking law regarding student loan servicers. Currently, certain exempt organizations that service student loans are not required to obtain a license, but they must notify the state superintendent and comply with specific sections of banking law. The bill makes a subtle but important change by replacing the word "notifies" with "shall notify", which slightly strengthens the notification requirement. Additionally, the bill adds a reference to article nine of the financial services law, expanding the regulatory framework that these exempt student loan servicers must follow. The bill ensures that unless federal law preempts state regulation, student loan servicers operating as exempt organizations must proactively inform state authorities about their activities and adhere to state regulations designed to protect consumers. The modification aims to provide more clarity and potentially stronger oversight of student loan servicing in New York, while maintaining the existing exemption from standard licensing requirements for certain organizations.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A8067