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ARTICLE · 16 SEPTEMBER 2022

California Regulator Proposes Changes To Student Loan Servicing Laws

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This proposed law makes clear that these products are subject to California's state licensure requirements on student loan servicers.

United StatesFinance and Banking
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Pouneh Almasi
Pouneh Almasi
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On August 30, the Commissioner of the California DFPI issued a notice of rulemaking proposing new regulations and amendments to current regulations implementing the state's student loan servicing laws. The proposed regulations aim to implement the provisions of the Student Loan Servicing Act and the Student Loans: Borrower Rights law by:

  • clarifying that all education financing products—including traditional loans, income share agreements, and installment contracts—are student loans for purposes of regulation under the Student Loan Servicing Act and the Student Loans: Borrower Rights law;
  • clarifying that servicers of all education financing products must be licensed as student loan servicers under the Student Loan Servicing Act;

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