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This entry was published on 2020-10-02
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Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 7
§ 701. Definitions. (a) The term "advertisement" shall include, but is
not limited to, all forms of marketing, solicitation, or dissemination
of information related, directly or indirectly, to securing or obtaining
a student debt consulting contract or services. Further, it shall
include all commonly recognized forms of media marketing via television,
radio, print media, all forms of electronic communication via the
internet, and all prepared sales presentations given in person or over
the internet to the general public.

(b) "Borrower" means any resident of this state who has received a
student loan or agreed in writing to pay a student loan or any person
who shares a legal obligation with such resident for repaying a student

(c) "FSA ID" means a username and password allocated to an individual
by the federal government to enable the individual to log in to certain
United States department of education websites, and may be used to sign
certain documents electronically.

(d) "Student loan" means any loan to a borrower to finance
post-secondary education or expenses related to post-secondary

(e) "Student debt consulting contract" or "contract" means an
agreement between a borrower and a consultant under which the consultant
agrees to provide student debt consulting services.

(f) "Student debt consultant" or "consultant" means an individual or a
corporation, partnership, limited liability company or other business
entity that, directly or indirectly, solicits or undertakes employment
to provide student debt consulting services. A consultant does not
include the following:

(1) a person or entity who holds or is owed an obligation on the
student loan while the person or entity performs services in connection
with the student loan;

(2) a bank, trust company, private banker, bank holding company,
savings bank, savings and loan association, thrift holding company,
credit union or insurance company organized under the laws of this
state, another state or the United States, or a subsidiary or affiliate
of such entity or a foreign banking corporation licensed by the
superintendent of financial services or the comptroller of the currency;

(3) a bona fide not-for-profit organization that offers counseling or
advice to borrowers;

(4) an attorney admitted to practice in the state of New York when the
attorney is providing student debt consulting services to a borrower
free of charge;

(5) a public post-secondary educational institution or private
nonprofit post-secondary educational institution; or

(6) such other persons as the superintendent prescribes by rule.

(g) "Student debt consulting services" means services that a student
debt consultant provides to a borrower that the consultant represents
will help to achieve any of the following:

(1) stop, enjoin, delay, void, set aside, annul, stay or postpone a
default, bankruptcy, tax offset, or garnishment proceeding;

(2) obtain a forbearance, deferment, or other relief that temporarily
halts repayment of a student loan;

(3) assist the borrower with preparing or filing documents related to
student loan repayment;

(4) advise the borrower which student loan repayment plan or
forgiveness program to consider;

(5) enroll the borrower in any student loan repayment, forgiveness,
discharge, or consolidation program;

(6) assist the borrower in re-establishing eligibility for federal
student financial assistance;

(7) assist the borrower in removing a student loan from default; or

(8) educate the borrower about student loan repayment.