(1) “Act” or “SLSA” means the Student Loan Servicing Act, Financial Code, Division 12.5, section 28100, et seq.

(2) “Annual percentage rate” or “APR” means the percentage rate calculated according to the Federal Reserve Board's methodology as set forth in Regulation Z, 12 C.F.R. Part 1026.

(3) “Borrower,” as defined in Financial Code section 28104, subdivision (b) and Civil Code section 1788.100, subdivision (a), includes a person who has received or agreed to pay any student loan, including an income share agreement or installment contract.

(4) “Education financing products” means all private student loans which are not traditional student loans.

(5) “Federal Direct Loan(s)” means loan(s) made under the William D. Ford Federal Direct Loan Program, authorized under Title IV of the Higher Education Act, as amended, 20 U.S.C. § 1070, et seq.

(6) “Federal Family Education Loan(s)” means loan(s) made under the Federal Family Education Loan (“FFEL”) Program, authorized under Title IV of the Higher Education Act, as amended, 20 U.S.C. § 1070, et seq.

(7) “Federal student loan(s)” means a loan made, insured or guaranteed under Title IV of the Higher Education Act, as amended, 20 U.S.C. § 1070, et seq.

(8) “Forbearance” means a period during which monthly federal student loan payments are temporarily suspended or reduced, due to certain types of financial hardships. During forbearance, principal payments are postponed but interest continues to accrue. Unpaid interest that accrues during forbearance may be added to the principal balance (capitalized) of the loan(s), increasing the total amount owed by the borrower(s).

(9) “Form MU1” means the uniform licensing form developed by the Nationwide Multistate Licensing System & Registry for a student loan servicer, entitled “NMLS Company Form,” Version 11.0, dated 09/12/2015, incorporated herein by reference.

(10) “Form MU2” means the uniform licensing form developed by the Nationwide Multistate Licensing System & Registry for a person that directly or indirectly exercises control over a student loan servicer, or a branch thereof, including qualifying individuals and branch managers specified in Form MU1, entitled “NMLS Individual Form,” Version 9, dated 9/12/16, incorporated herein by reference.

(11) “Form MU3” means the uniform licensing form developed by the Nationwide Multistate Licensing System & Registry for the branch office of a student loan servicer, entitled “NMLS Branch Office Form,” Version 10, dated 3/31/14, incorporated herein by reference.

(12) “Income” means a borrower's compensation from all sources, including but not limited to salary, wages, bonuses, commissions, vacation pay, gratuities, and self-employed earnings, but excludes passive income such as interest, dividends or rental income.

(13) “Income share agreement” or “ISA” means an agreement between a student and a school or an income share provider under which the student agrees to pay a percentage or amount of the student's future income for the payment term, in exchange for the school or income share provider advancing, covering, crediting, deferring, or funding the cost of some or all of the student's postsecondary education and costs of attendance at a postsecondary institution, including but not limited to tuition, fees, books and supplies, room and board, transportation, and miscellaneous personal expenses.

(14) “Income share” means the percentage or amount of a borrower's income payable during the term of the income share agreement.

(15) “Installment contract” means a private student loan from a postsecondary institution to a student in which the student agrees to repay the amount advanced, covered, credited, deferred, or funded in a fixed number of payments of a fixed amount, including an education installment contract and a retail installment contract.

(16) “Maximum payments” means the maximum number of payments a borrower is required to make under an income share agreement, if the borrower's income meets or exceeds the minimum income threshold.

(17) “Minimum income threshold,” “minimum threshold,” “payment floor” or “floor” means the amount of income specified in an income share agreement below which a borrower is not required to make payments.

(18) “NMLS” means the Nationwide Multistate Licensing System & Registry.

(19) “Payment cap,” “payment ceiling,” “ceiling” or “cap” means the maximum amount payable under an income share agreement, which may be expressed as an APR or an amount or a multiple of the amount advanced, covered, credited, deferred, or funded, excluding charges related to default.

(20) “Payment term” means the payment window or maximum period of repayment obligations under an income share agreement or other written agreement evidencing an education financing product.

(21) “Perkins Loan(s)” means Federal Perkins Loans, authorized under Title IV of the Higher Education Act, as amended, 20 U.S.C., § 1070, et seq.

(22) “Private Student Loan” means a private education loan, as defined in the Truth in Lending Act, at 15 U.S.C. 1650(a)(8).

(23) “Qualifying payment” means, with respect to income share agreements, a monthly payment that counts toward the maximum payments or the payment cap.

(24) “Startup” means a company in its first twelve months of operations.

(25) “Student Aid Office” or “Federal Student Aid Office” means that certain office of the U.S. Department of Education, which is the largest provider of student financial aid nationwide and is responsible for managing the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended, 20 U.S.C., § 1070, et seq.

(26) “Student loan servicer,” as defined in Financial Code section 28104, subdivision (m), includes any person engaged in the business of servicing education financing products, such as program managers.

(27) “Student Loans: Borrower Rights law” means Civil Code, Division 3, Part 4, Title 1.6C.10, sections 1788.100, et seq.

(28) “Traditional student loan” means: