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Massachusetts
Student Loan Servicer License Bond

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Coverage Amount: $25,000
Term Length: 1 year
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Massachusetts Student Loan Servicer License Bond Guide

If you’re applying for a student loan servicer license in Massachusetts, you’ll likely need this surety bond. 

Bond Overview

  • Purpose: To ensure loan service companies uphold state regulations 
  • Who Needs It: Federal student loan service companies in Massachusetts 
  • Regulating Body: The Massachusetts Division of Banks
  • Required Coverage: $25,000
  • Premium Rate: $250–$2,500, credit-based

Learn all about the bond requirements and process in this guide. 

What Is a Massachusetts Student Loan Servicer License Bond? 

A Massachusetts student loan servicer license bond ensures that loan service companies properly handle funds and operate ethically. 

The Massachusetts Division of Banks (DOB) requires a $25,000 surety bond for all federal student loan servicers, regardless of loan volume. 

How Much Do Student Loan Servicer License Bonds Cost?

Massachusetts student loan servicer license bonds cost a small percentage of the $25,000 coverage amount starting at $250.

Exact rates vary based on personal credit score. Apply for your free quote now!

Bond Type
$25,000Student Loan Servicer License Bond

SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. 

Who Needs a Student Loan Servicer License Bond? 

The Massachusetts Division of Banks requires this bond as part of the licensing process for companies that service federal student loans to state residents. 

These companies are contracted by the U.S. Secretary of Education and must apply for the Automatic Federal Student Loan Servicer License. 

How Do I Get My Bond?

SuretyBonds.com provides the fastest and easiest way to get a Massachusetts student loan servicer license bond. Just follow these quick steps: 

  1. Apply: Submit an online quote request form
  2. Quote: Receive your quote within one day
  3. Sign: Complete the indemnity agreement 
  4. Buy: Purchase the bond online 24/7

Once your order is processed, we’ll upload the official bond form directly to NMLS on your behalf. We’ll also email you a copy for your records. 

If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance. 

How Does a Massachusetts Automatic Federal Student Loan Servicer License Bond Work? 

An automatic federal student loan servicer license bond creates a legal contract between these three parties: 

  1. Principal: You, the loan servicer filing the bond
  2. Obligee: The Massachusetts Division of Banks requiring the bond
  3. Surety: The provider issuing the bond

This holds you financially responsible for upholding the provisions of the Code of Massachusetts Regulations Title 209, Section 18. 

If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety. 

How Do I Renew My Bond?

These bonds expire annually. To renew your student loan servicer license bond, simply pay your renewal invoice when prompted. 

We’ll begin contacting you by phone and email 90 days before the expiration date. 

More Resources

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