DBO Licensing Program Underway for Student Loans
The DBO Monthly Bulletin for July, 2018 reports that licensing, through NMLS under the Student Loan Servicing Act is now available and provides links to NMLS and to the DBO Student Loan Servicing Webpage
Student Loan Servicing Act Effective as of July 1
As of July 1, 2018, the DBO licenses and regulates Student Loan Servicers engaged in business in California. As part of this new program, the DBO fields complaints from borrowers and enforces violations of the underlying law, the Student Loan Servicing Act (SLSA). Prior to enactment of the law, student loan servicers were not regulated by the DBO.
The DBO accepts applications for licenses through the Nationwide Multistate Licensing System and Registry (NMLS). Details and updated information on the SLSA may be found at the DBO’s Student Loan Servicing Program webpage.
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 SLSA is in the California Financial Code, Division 12.5, commencing with section 28100.
In response to public comments, Commissioner Owen has modified rules proposed to implement the SLSA, which authorizes the Commissioner to license, regulate and oversee student loan servicers.