DC automatic servicer bonds.
$300 for the $50,000 bond.

A servicer that works solely under a contract with the U.S. Secretary of Education (20 U.S.C. § 1087f) qualifies for the District's automatic student loan servicer license — a non-expiring license type under D.C. Code § 31-106.02, issued by the Department of Insurance, Securities and Banking without the full application review. The $50,000 surety bond is still filed through NMLS with the license. Our premium is 0.6% of the bond amount, $100 minimum — $300 for the $50,000 bond, issued the moment you pay. Any credit screen is a soft pull only — it never affects your score.

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For servicers solely under a federal contract with the U.S. Secretary of Education (20 U.S.C. § 1087f)

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Automatic, non-expiring license — issued by DISB under D.C. Code § 31-106.02

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0.6% rate, $100 minimum — $300 for the $50,000 bond, no quote process

$300for the $50,000 bondInstantissuance at checkoutA-ratedA.M. Best carriers

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How it works

Three steps. One sitting.

The bond is the easy part of the automatic license filing. Here is the entire process:

NOW · ONLINE

Apply online

Business details, an effective date, and a term. That is the entire application — any credit screen is a soft pull that never shows as a hard inquiry.

INSTANTLY

Pay & e-sign

This bond is checkout-priced — $300 for the $50,000 amount, so it issues the moment you pay — your executed bond and power of attorney generate on the spot.

SAME DAY

File through NMLS

DC servicer licensing runs through NMLS. Your executed bond arrives by email, ready to associate with your automatic license record for DISB.

About this bond

What it is and who needs it.

What the bond actually guarantees

The District licenses student loan servicers under D.C. Code § 31-106.02, administered by the Department of Insurance, Securities and Banking through NMLS. A servicer that acts — and intends to act — solely under a contract with the U.S. Secretary of Education under 20 U.S.C. § 1087f is granted the automatic license: a perpetual, non-expiring license type issued without the full application review the standard license requires.

The $50,000 surety bond required by the Department is filed through NMLS with the license. It's a three-party arrangement — you (the principal), the surety carrier, and the Commissioner as obligee — standing behind the recovery of damages a student loan borrower incurs from a licensee's noncompliance with the District's servicing requirements.

It is not insurance for you — if the surety pays a claim, you repay the surety. The bond has to stay continuously on file with your NMLS record even though the license itself does not expire; we track the term and send renewal notices 60 and 30 days out.

D.C. Code § 31-106.02Section 31-106.02 requires student loan servicers operating in the District to be licensed by the Department of Insurance, Securities and Banking, and grants an automatic license to an entity that solely acts, or solely intends to act, as a servicer pursuant to a contract with the United States Secretary of Education under 20 U.S.C. § 1087f. The statute requires a surety bond with licensure — set by the Department at $50,000 — available for the recovery of damages incurred by a student loan borrower as a result of a licensee's noncompliance.

You need this bond if you're

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A federal contract servicer working solely under a U.S. Department of Education contract

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Filing for the automatic license — the bond accompanies your NMLS filing to DISB

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Keeping the license active — the bond stays on file even though the license does not expire

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Expanding into private servicing — you'll switch to the standard servicer license and its bond

One application, issued instantly.

These are the actual issuing fields — business details, an effective date, and a term. That is the entire application.

Start the application →

FAQ

Common questions.

How much is the DC automatic student loan servicer bond?The premium is 0.6% of the bond amount with a $100 minimum — $300 for the $50,000 bond. There is no quote process, and the price you see is the checkout price.

What makes the license "automatic"?D.C. Code § 31-106.02 grants it to servicers that solely act under a contract with the U.S. Secretary of Education (20 U.S.C. § 1087f) — DISB issues it without the full application review, and it does not expire. The surety bond is still filed through NMLS with the license.

Do I pay the $50,000?No. You pay $300. The $50,000 is the surety's maximum liability if a valid claim is made against the bond — not a deposit, and nobody holds your money.

Is there a credit check?If a credit screen runs on this bond, it is a soft pull only — never a hard inquiry, and it never affects your score. The price stays $300 either way.

What if we also service private student loans?Then the automatic license does not fit — it is only for servicers working solely under the federal contract. You would apply for the standard DC student loan servicer license, which carries the same $50,000 bond.

Related bonds

Other District of Columbia bonds.

File your automatic license bond today.

$300 for the $50,000 bond, issued the moment you pay, soft pull only. Free until issued.

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Your price$300

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