Surety Bond Requirements for Student Loan Servicers in Oregon
Companies servicing student loans for Oregon borrowers need a Student Loan Servicer License from the Oregon Division of Financial Regulation, and a $30,000 surety bond as part of that license, filed through the Nationwide Multistate Licensing System (NMLS).
Financial institutions, banks, a list of public universities and community colleges, and certain nonprofit organizations are some of the entities exempt from these requirements. For more, you can read the Senate Bill 485.
How Much Does an Oregon Student Loan Servicer Bond Cost?
With Bryant Surety Bonds, the cost of your bond typically starts at 0.75% of the required bond amount, or roughly $225 a year for the $30,000 surety bond. Your actual rate comes down mostly to your personal credit history. Our surety bond cost page explains pricing in more depth.
| License Type | Bond Amount | Starting Cost/Year |
|---|---|---|
| Student Loan Servicer License | $30,000 | $225 |
If you don’t have the strongest credit history, we can still get you bonded. Our bad credit bond program has helped many applicants that other sureties had turned down.
Complete our online application for a free quote with no purchase obligation.
Why Do You Need a Student Loan Servicer Bond in Oregon?
Your bond serves as a financial guarantee for your compliance with Oregon's student loan servicing regulations. If a valid claim is filed against your bond for noncompliance, your surety pays the claim amounts up to your bond's full penal sum, and you're responsible for paying the surety back.
If surety bonds are new to you, our what is a surety bond page covers the fundamentals.
How to Get Bonded
Bryant Surety Bonds gets you bonded in three steps.
- Complete our online application. It only takes a few minutes.
- Review your quote and pay. We shop your application to 20+ A-rated carriers and issue the bond as soon as you accept a rate.
- We handle your NMLS filing. Your Electronic Surety Bond (ESB) is submitted directly to your NMLS record.
Once your quote is approved, you'll grant us authority as your surety inside NMLS, a step the Division requires before it will accept the bond.
How Do You Renew Your Bond?
Your license expires December 31 every year. You need to submit your renewal request through NMLS at least 30 days before that expiration date.
We'll reach out with a reminder once we have your renewal date on file, and our agents can help you look at ways to bring your cost down.
How To Apply for a Student Loan Servicer License in Oregon?
Here's what the process generally involves:
- Opening or updating your NMLS account and filing the Company Form (MU1).
- Assembling your documentation: formation paperwork, a business plan, and a management chart.
- Submitting a financial statement, audited or unaudited, showing a net worth of at least $250,000.
- Completing background checks and credit reports for controllers and managers, as defined under Oregon's financial institution statutes.
- Authorizing your surety in NMLS so we can file your Electronic Surety Bond directly to your record.
- Covering the required fees (below).
Full documentation guidance is on the NMLS website.
Oregon Student Loan Servicer Licensing Fees
| Fee | Amount |
|---|---|
| Application fee | $1,000 |
| License registration fee | $0 |
| NMLS processing fee | $120 |
Background checks and credit reports come with their own separate NMLS fees. See the NMLS System Fees page for current pricing.
Multistate Licensing and Bonding
Each state sets its own bond amount and requires its own Electronic Surety Bond, none of that transfers between states. For example, Rhode Island requires a $50,000 bond for this same license type, well above Oregon's flat $30,000.
Bryant Surety Bonds can act as your single point of contact across every state you're licensed in, rather than managing a different surety for each location.
Get Bonded With Bryant Surety Bonds
Bryant Surety Bonds holds Oregon license number 3000576516.
Have questions about getting bonded in Oregon? Give us a call at 866.450.3412.
FAQ
Can you use something other than a surety bond to meet this requirement?
Yes. Oregon also accepts an irrevocable letter of credit in place of a surety bond, in the same amount that would otherwise be required.
Are any businesses besides banks and credit unions exempt from this license?
Yes. Attorneys servicing a student loan only incidentally while practicing law, public universities, community colleges, and certain nonprofit institutions authorized to confer degrees are also exempt.
How quickly do you need to respond to a borrower complaint?
Within 30 calendar days of the complaint or a communication from the state's student loan ombudsman, though you can request up to 30 additional days in writing if you explain why the extra time is necessary.
