N.Y. Financial Services Law § 701: Definitions

§ 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

loan.

(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

education.

(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.