{"data":{"id":"us-ky/krs-286.12-020","jurisdiction":"us-ky","citation":"KRS 286.12-020","heading":"License as student education loan servicer -- Exemptions -- Persons","body":"servicing federal loans.\n(1) As used in this section, \"federal student education loan\" means any:\n(a) Student education loan issued pursuant to the William D. Ford Fed eral Direct\nLoan Program established under 20 U.S.C. sec. 1087a et seq., as amended;\n(b) Student education loan issued pursuant to the Federal Family Education Loan\nProgram, which was purchased by the United States pursuant to the federal\nEnsuring Continued Access to Student Loans Act of 2008, Pub. L. No. 110 -\n227, and is presently owned by the United States; or\n(c) Other student education loan issued pursuant to a federal program that is\nidentified by order of the commissioner as a federal student education loan.\n(2) Except as provided in subsections (3) and (4) of this section, no person shall engage\nin the business of servicing student education loans in this state without having first\nobtained a license as a student education loan servicer in accordance w ith this\nsubtitle.\n(3) The following shall be exempt from the provisions of this subtitle:\n(a) A bank or trust company doing business under the authority of, or in\naccordance with, a license, certificate, or charter, issued by the United States,\nor any sta te, district, territory, or commonwealth of the United States, that is\nauthorized to transact business in this state;\n(b) A wholly owned subsidiary of any entity exempt under paragraph (a) of this\nsubsection;\n(c) A federally chartered savings and loan asso ciation, federal savings bank, or\nfederal credit union that is authorized to transact business in this state;\n(d) A savings and loan association, savings bank, or credit union organized under\nthe laws of this or any other state that is authorized to transa ct business in this\nstate;\n(e) A public postsecondary educatio n institution or private nonprofit\npostsecondary education institution servicing a student education loan\nextended to a borrower;\n(f) The United States, or any state, district, territory, commonwealth, or\npossession of the United States;\n(g) Any city, coun ty, or other political subdivision of any entity exempt under\nparagraph (f) of this subsection; and\n(h) Any agency, division, or corporate instrumentality of any entity exempt under\nparagraph (f) or (g) of this subsection.\n(4) A person servicing federal student education loans in this state shall:\n(a) As of July 14, 2022, automatically be deemed, by operation of law, as having\nbeen licensed by the commissioner to service federal student education loans\nin this state;\n(b) Provide notice to the commissioner that the person is servicing federal student\neducation loans in this state;\n(c) Comply with this subtitle, with the exception of KRS 286.12-030; and\n(d) Not be authorized to engage in the business of servicing non -federal student\neducation loans in this state unless the person is:\n1. Exempt from this subtitle under subsection (3) of this section; or\n2. Licensed as a student education loan servicer in accordance with this\nsubtitle.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55169","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"cc9c4f92c8b67869cbae804bc3f79d0059453d69b8df4eb428524eca053ab31d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.12-010","next":"us-ky/krs-286.12-030"},"notice":"GroundRules: Original legal text. Not legal advice."}