What Is a Student Loan Servicer Bond, and Who Needs One?
Companies that collect payments, manage borrower accounts, or otherwise service student loans, private or federal, need a student loan servicer license in a growing number of states, and several of those states require a surety bond as part of that license.
States with a confirmed surety bond requirement for student loan servicers include:
| State | Bond Amount |
|---|---|
| California | $25,000 - $100,000
Based on loan volume serviced |
| District of Columbia | $50,000 |
| Kentucky | $100,000 |
| Massachusetts | $25,000 |
| Nevada | $50,000 - $250,000
Based on loan volume serviced |
| New Jersey | $30,000 |
| Oregon | $30,000 |
| Rhode Island | $50,000 |
If your state isn't listed here, it likely doesn't yet regulate student loan servicing as its own separate license category.
How Much Does a Student Loan Servicer Bond Cost?
Your starting premium is typically around 0.75% of your required bond amount, though your exact rate depends on your personal credit history, financial statements, and other underwriting factors specific to your state and bond amount.
A low credit score doesn't disqualify you from getting bonded. Through our bad credit bond program, we regularly bond applicants who wouldn't qualify elsewhere.
How to Get Bonded
Bryant Surety Bonds gets you bonded in three steps.
- Complete our online application. It takes just a few minutes.
- Get approved and pay for your bond. We compare your application across 20+ A-rated carriers and issue your bond as soon as you accept a rate.
- We handle your state's electronic filing. Most student loan servicer bonds are filed through NMLS as an Electronic Surety Bond (ESB), so there's no paper form to track down.
Why Do You Need a Student Loan Servicer Bond?
Loan servicing puts you in direct control of a borrower's payment history, and account records, with potential consequences for the borrower if any of that is handled incorrectly. States that require this bond use it to back your compliance with their servicing laws.
In case of a valid claim against your bond your bond covers fines or fees a regulator assesses against you, and compensates borrowers for losses tied to your noncompliance. Your surety pays out the claim up to the bond amount and you are then responsible for fully reimbursing the surety.
Get Bonded With Bryant Surety Bonds
Bryant Surety Bonds is licensed in all 50 states and works with over 20 A-rated surety carriers to get you bonded quickly, regardless of your credit history.
Questions about your student loan servicer bond? Call us at 866.450.3412.
FAQ
How long does a student loan servicer bond term last?
Bond terms generally follow your license term, and most states require annual renewal. Exact renewal deadlines and procedures vary by state, so check your specific state's page for the details that apply to you.
Does bad credit rule you out from getting bonded?
No. It affects your rate, not your eligibility. We bond applicants across the credit spectrum through our bad credit bond program.
Do you need a separate bond for every state you're licensed in?
Yes. Bonds don't transfer between states. Each state that requires one sets its own amount and needs its own Electronic Surety Bond filed separately, even if you're already bonded elsewhere.
Does every state that licenses student loan servicers require a bond?
No. Several states, including Connecticut, Illinois, Maine, Minnesota, and New York, license servicers without requiring a bond.
Can your required bond amount change over time?
Yes, in states that tie your bond to servicing volume. California and Nevada both use tiered bond structures, so your required amount can increase or decrease based on how much you serviced the year before.
