Surety Bond Requirements for Student Loan Servicers in Nevada
Under Nevada Assembly Bill 332, anyone servicing a student education loan needs a Student Loan Servicer License from the Nevada Division of Business & Industry, Financial Institutions Division, and a surety bond filed through the Nationwide Multistate Licensing System (NMLS) as part of that license. The Nevada System of Higher Education and the Western Interstate Commission for Higher Education are exempt.
Your required bond amount depends on your servicing volume from the prior year:
| Loans Serviced in Prior Year | Bond Amount |
|---|---|
| $0 - $50,000,000 | $50,000 |
| $50,000,001 - $100,000,000 | $75,000 |
| $100,000,001 - $250,000,000 | $100,000 |
| Over $250,000,000 | $250,000 |
How Much Does a Nevada Student Loan Servicer Bond Cost?
With Bryant Surety Bonds, the starting rate is around 0.75% of your bond amount. That puts the base tier at roughly $375 a year on the $50,000 bond. Your personal credit is the main factor behind your actual quote but other factors such as financial statements and experience can also influence your rate. See our surety bond cost page for more detail on pricing.
Below we break down the starting bond cost based on the bond amount, assuming excellent credit history.
| Loans Serviced in Prior Year | Bond Amount | Starting Cost/Year |
|---|---|---|
| $0 - $50,000,000 | $50,000 | $375 |
| $50,000,001 - $100,000,000 | $75,000 | $563 |
| $100,000,001 - $250,000,000 | $100,000 | $750 |
| Over $250,000,000 | $250,000 | $1,875 |
A rough credit history doesn't automatically disqualify you. Our bad credit bond program has a track record of bonding applicants other sureties turn away.
Apply through our online application, free to submit with no obligation to buy.
Why Do You Need a Student Loan Servicer Bond in Nevada?
Your bond backs your compliance with Nevada's student loan servicing law. If a claim is filed against your bond, your surety pays any valid claims up to your bond's full penal sum, and you're then responsible for reimbursing the surety.
If you're new to how surety bonds work, our what is a surety bond page covers the fundamentals.
How to Get Bonded
Bryant Surety Bonds gets you bonded in three steps.
- Fill out our online application. It only takes a few minutes.
- Review and accept your quote. We shop your application across 20+ A-rated carriers and issue your bond once you accept a rate.
- NMLS filing is on us. Your Electronic Surety Bond (ESB) goes directly to your NMLS record.
After you approve your quote, we'll walk you through granting us authority as your surety inside NMLS, a required step before the Division will accept the bond.
How Do You Renew Your Bond?
The Nevada Financial Institutions Division sets its own renewal deadlines, so confirm your exact renewal date with the Division rather than assuming a fixed cycle. Your required bond amount can also move up or down at renewal, since it's recalculated based on the dollar amount of loans you serviced the year before.
We'll reach out with a reminder once we have your renewal date on file, and our agents can help you look for ways to bring your cost down.
How To Apply for a Student Loan Servicer License in Nevada?
Here's the general process:
- Open or update your NMLS account and complete the Company Form (MU1).
- Assemble your documentation: formation paperwork and a business plan describing your servicing activities.
- Complete background checks and credit reports for owners, officers, and control persons, unless you're a federal government contract recipient, which carries reduced documentation requirements.
- Authorize your surety in NMLS so we can file your Electronic Surety Bond directly to your record.
- Cover the required fees (below).
Full documentation guidance is available on the NMLS website.
Nevada Student Loan Servicer Licensing Fees
| Fee | Amount |
|---|---|
| Application fee | $800 |
| License registration fee | $1,000 |
| NMLS processing fee | $120 |
Background checks and credit reports carry their own separate NMLS fees. See the NMLS System Fees page for current pricing.
Multistate Licensing and Bonding
If you want to service student loans in more than one state, you will have to submit a separate license application and bond for each state you want to operate. Licensing requirements and bond amount can vary substantially. For comparison, Massachusetts requires a flat $25,000 surety bond regardless of volume, a much simpler structure than Nevada's tiered approach.
Bryant Surety Bonds is licensed to conduct business in all 50 states. We can be your single point of contact across every state you operate in, saving you time and money in the process.
Get Bonded With Bryant Surety Bonds
Bryant Surety Bonds holds Nevada license number 3462347.
Have questions about getting bonded in Nevada? Give us a call at 866.450.3412.
FAQ
Can you operate your Nevada student loan servicing business from your home?
No. Your place of business must be a commercially zoned location. A residence doesn't qualify, even if it's where you'd otherwise prefer to operate.
Does Nevada require a specific net worth to get licensed?
No. Unlike other states, Nevada doesn't set a minimum net worth requirement for this license.
Can the bond amount change at renewal?
Yes. If the amount of loans serviced in the past year has changed, your surety bond amount can increase or decrease accordingly based on the table presented above.
