Student Loan Servicing Program

The DBO plans to update this information by December 1, 2017

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 passed and was signed into law as Chapter 824 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.

The Student Loan Servicing Act

Subject to limited exclusions, the Act prohibits a person from engaging in the business of servicing a student loan in this state without a license.  The act of servicing includes any of the following activities related to a student loan:

    (1)  Performing both of the following:
    • (A)  Receiving any scheduled periodic payments from a borrower or any notification that a borrower made a scheduled periodic payment.
    • (B)  Applying payments to the borrower’s account pursuant to the terms of the student loan or the contract governing the servicing.
    (2)  During a period when no payment is required on a student loan, performing both of the following:
    • (A)  Maintaining account records for the student loan.
    • (B)  Communicating with the borrower regarding the student loan on behalf of the owner of the student loan promissory note.
    (3)  Interacting with a borrower related to that borrower’s student loan, with the goal of helping the borrower avoid default on his or her student loan or facilitating the activities described in paragraph 1 or 2.

On January 2, 2018, the DBO will begin using the Nationwide Multistate Licensing System and Registry (NMLS) to manage student loan servicer licensees. Through NMLS, entities will have the option to apply for, or amend, its license conveniently and safely online. Specific licensing information will be added to this website by December 1, 2017.

Licensee Information

Licensing information will be added to this website by December 1, 2017. On January 2, 2018, the DBO will begin using the Nationwide Multistate Licensing System & Registry (NMLS) system to manage student loan servicers, who must apply for licensure through NMLS’ convenient and secure online system.

Consumer Information

(Student loan servicer complaints will be accepted starting July 1, 2018.)

When the Student Loan Servicing Program opens on July 1, 2018, the Department will provide support to help address inquiries and complaints related to servicing issues with licensees.  In the meantime, if you are unable to resolve a dispute by directly contacting the student loan servicer, you may follow up with the company’s ombudsman, if available.  The following federal resources also are available:


Consumer Financial Protection Bureau
P. O. Box 4503
Iowa City, IA 52244
Telephone: (855) 411-2372
Fax: (855) 237-2392

U.S. Department of Education
Federal Student Aid (FSA) Ombudsman Program
P.O. Box 1843
Monticello, KY 42633
Phone: (877) 557-2575
Fax: (606) 396-4821