Student loan servicers need surety bonds in Washington

WASHINGTON — Updates to the Consumer Loan Act include surety bond requirements for student loan services.

Student loan businesses must post a $30,000 bond as part of the requirements to receive and maintain a license from the Washington State Department of Financial Institutions to able to legally work within the state. These updates are part of Senate Bill 6029, which passed June 7, 2018. Student loan servicer bond and licensing requirements differ somewhat from other loan servicer requirements.

The department began accepting accepting electronic surety bonds for Washington Student Education Loan Servicer Licencing through the Nationwide Multistate Licensing System (NMLS) on July 16, 2018.

California passed similar regulations in 2018 and as did Washington D.C. in 2017.

Questions about Washington Student Education Loan Servicer Licencing should be directed to Washington DFI Licensing Unit at (360) 902-8703, options 2, 3, 1, or CSLicensing@dfi.wa.gov.

Information regarding NMLS license types, bond forms and other information can be found on the ESB Adoption Map and Table posted on the NMLS Resource Center.

Alpha Surety & Insurance Brokerage will be happy to answer any questions regarding a Student Loan Servicer Surety Bond or any surety bond questions in general. 

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