---
kind: "section"
citation: "12 C.F.R. § 1090.106"
title: "12"
number: "1090.106"
heading: "Student loan servicing market."
url: "https://uscodex.org/cfr/12/1090.106"
---

# §1090.106. Student loan servicing market.

- (a) **Market-related definitions.** As used in this subpart:

  Account volume means the number of accounts with respect to which a nonbank covered person is considered to perform student loan servicing, calculated as follows:

  - (i) **Number of accounts.** A nonbank covered person has at least one account for each student or prior student with respect to whom the nonbank covered person performs student loan servicing. If a nonbank covered person is receiving separate fees for performing student loan servicing with respect to a given student or prior student, the nonbank covered person has one account for each stream of fees to which the person is entitled.
  - (ii) **Time of measurement.** The number of accounts is counted as of December 31 of the prior calendar year.
  - (iii) **Affiliated companies.**
    - (A) The account volume of a nonbank covered person is the sum of the number of accounts of that nonbank covered person and of any affiliated companies of that person.
    - (B) If two persons become affiliated companies, each person's number of accounts as of the prior calendar year's December 31 is included in the total account volume.
    - (C) If two affiliated companies cease to be affiliated companies, the number of accounts of each continues to be included in the other's account volume until the succeeding December 31.

      Post-secondary education expenses means any of the expenses that are included as part of the cost of attendance of a student as defined in [20 U.S.C. 1087ll](/usc/20/1087ll.md).

      Post-secondary education loan means a loan that is made, insured or guaranteed under Title IV of the Higher Education Act of 1965 ([20 U.S.C. 1070](/usc/20/1070.md) et seq.) or that is extended to a consumer with the expectation that the funds extended will be used in whole or in part to pay post-secondary education expenses. A loan that is extended in order to refinance or consolidate a consumer's existing post-secondary education loans is also a post-secondary education loan. However, no loan under an open-end credit plan (as defined in Regulation Z, [12 CFR 1026.2(a)(20)](/cfr/12/1026.2.md?p=a-20)) or loan that is secured by real property is a post-secondary education loan, regardless of the purpose for the loan.

      Student loan servicing means:

  - (i)
    - (A) Receiving any scheduled periodic payments from a borrower or notification of such payments and
    - (B) Applying payments to the borrower's account pursuant to the terms of the post-secondary education loan or of the contract governing the servicing;
  - (ii) During a period when no payment is required on a post-secondary education loan,
    - (A) Maintaining account records for the loan and
    - (B) Communicating with the borrower regarding the loan, on behalf of the loan's holder; or
  - (iii) Interactions with a borrower, including activities to help prevent default on obligations arising from post-secondary education loans, conducted to facilitate the activities described in paragraph [(i)](#a-i) or [(ii)](#a-ii) of this definition.
- (b) **Test to define larger participants.** A nonbank covered person that offers or provides student loan servicing is a larger participant of the student loan servicing market if the nonbank covered person's account volume exceeds one million.

## Notes

### Amendments

[78 FR 73406, Dec. 6, 2013]

### Authority

Authority: 12 U.S.C. 5514(a)(1)(B); 12 U.S.C. 5514(a)(2); 12 U.S.C. 5514(b)(7)(A); and 12 U.S.C. 5512(b)(1).

### Source

Source: 77 FR 42898, July 20, 2012, unless otherwise noted.

### Amendments

[78 FR 73406, Dec. 6, 2013]