Student Loan Servicing Program
Starting July 1, 2018, the Department of Business Oversight (DBO) will license and regulate Student Loan Servicers engaged in business in California. As part of this new program, the DBO will field complaints from borrowers and enforce violations of the underlying law, the Student Loan Servicing Act. The Legislature approved the program in Assembly Bill 2251, which was signed into law by Governor Edmund G. Brown Jr. in 2016. The statute established state standards to ensure consistent, fair, and quality servicing for the more than 4 million Californians who have student loans. The Student Loan Servicing Act is in the California Financial Code, Division 12.5, commencing with section 28100.
|January 2, 2018||The DBO will start accepting applications for licenses through the Nationwide Multistate Licensing System and Registry (NMLS).|
|June 1, 2018||Last day to submit licensee applications to ensure processing by July 1, 2018.|
|July 1, 2018||All companies that want to continue to perform student loan servicing activities in CA will need to be licensed.|
|July 1, 2018||The DBO will start processing consumer complaints.|
Pending Rulemaking PRO 01/17 - Student Loan Servicing Act
Pending Legislation Assembly Bill 38 (Stone) - On January 2, 2018, the DBO will begin using the NMLS to manage Student Loan Servicer Licenses. Through NMLS, companies can apply for a Student Loan Servicer License and submit any subsequent amendments to their licenses conveniently and safely online.
The Student Loan Servicing (SLS) Act Requirements
- Who is required to obtain a license or branch license?
- Who is excluded from licensing requirements?
- Which student loan activities are covered?
- What are the licensing requirements?
- What are the requirements after a license has been issued?
- Alert: New Procedures
- How do I apply for a Student Loan Servicer License?
- How do I apply for a Branch Office License?
- How do I amend a Student Loan Servicer License or Branch Office License?
- How do I surrender a Student Loan Servicer License or Branch Office License under the SLS?
Information on SLS licensing requirements is also available on NMLS, which allows companies to conveniently manage their Student Loan Servicer License(s) through a secure website. Please visit NMLS for additional information. View state Student Loan Servicer licensing requirements specific to the California Department of Business Oversight.