New Licensing Requirements for Student Loan Servicers in California

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STUDENT LOAN SERVICERS
AB 2251 (Stone)
Student loan servicers: licensing and regulation: Student Loan Servicing Act.
AB 2251, Chapter 824, Statutes 2016
(Financial Code)
This bill adds a new Division, the “California Student Loan Servicing Act (Act),” to the
Financial Code. The Act requires servicers to adhere to specified borrower protections
when servicing student loans. The bill also expands the authority of the Commissioner of
Business Oversight to include the licensure, regulation and oversight of student loan
servicers. This bill prohibits a person from acting as a student loan servicer without a
license, unless exempt. This new Division becomes operative on July 1, 2018. The
Commissioner may take action on and after January 1, 2017, as authorized under the
Division to prepare for the July 1, 2018 operative date.

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