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This page addresses companies that service student loans on behalf of loan owners, investors, guaranty agencies, and financing providers under California's Student Loan Servicing Act (SLS Act). It does not address companies that originate education financing, which are addressed separately under the firm's postsecondary education financing resources, nor companies that provide student debt-relief services, which are subject to a distinct DFPI registration category. Law Offices of Alan Abergel, P.C. ("LOAA") represents California student loan servicers in DFPI licensing, regulatory compliance, document drafting, and enforcement action defense. The firm represents servicers; it does not represent borrowers.
The SLS Act defines servicing broadly. As Student Loan Servicing Act compliance counsel, LOAA advises companies on whether their activities fall within the statutory definition and require DFPI licensing and/or registration. LOAA provides this analysis for companies through written legal opinions.
The DFPI administers student loan servicer licensing through the Nationwide Multistate Licensing System (NMLS). As DFPI student loan servicing attorney counsel, LOAA assists applicants with licensing application requriements.
Certain entities and activities may fall outside the SLS Act's licensing requirement, including exemptions applicable to specified categories of activities. LOAA analyzes whether a specific servicing arrangement qualifies for an available exemption before an applicant commits to the licensing process, and reassesses exemption eligibility if a company's servicing activities or client relationships change materially.
Many student loan servicers rely on subservicers or third-party vendors to perform some or all servicing functions. As subservicer compliance counsel, LOAA advises licensed servicers and their subservicers on the allocation of licensing responsibility, contractual compliance obligations, and the licensed servicer's ongoing responsibility for the conduct of vendors performing servicing functions on its behalf, since regulatory responsibility for compliance generally does not transfer away from the licensed entity merely because functions are delegated.
When a servicer takes on a new portfolio, whether through a new client relationship or an acquisition of servicing rights, the boarding process requires careful attention to data accuracy, payment history transfer, and continuity of borrower-facing information. As student loan servicing transfer attorney counsel, LOAA advises servicers on the requirements applicable to servicing transfers under the SLS Act and the California Student Borrower Bill of Rights.
Because a servicer acts on behalf of a loan owner, investor, or guaranty agency rather than the borrower, the servicing agreement between the servicer and its client defines much of the servicer's operational obligations. LOAA drafts and reviews loan-owner agreements addressing the scope of servicing functions delegated, compliance responsibility allocation, data ownership and access, and termination and transition provisions applicable when a servicing relationship ends.
The DFPI conducts periodic examinations of licensed servicers addressing payment processing accuracy, account maintenance, borrower communications, and compliance with the Student Borrower Bill of Rights. As student loan servicer examination counsel, LOAA assists servicers with examination preparation, responses to document requests and examiner interviews, and resolution of examination findings before they escalate to formal enforcement.
Beyond the SLS Act, servicers of federal student loans are subject to Higher Education Act and Department of Education requirements governing payment processing, income-driven repayment plan administration, and reporting to the Department of Education and consumer reporting agencies. Private student loan servicing lawyer matters involve a distinct, though overlapping, body of federal consumer protection law, and servicers of the largest portfolios may be subject to direct CFPB supervision under the agency's larger participant rule. LOAA advises servicers on integrating these federal requirements with California SLS Act and Student Borrower Bill of Rights obligations into a single compliance program.
LOAA drafts servicing agreements, borrower disclosures, payment authorization forms, transfer notices, and complaint response templates reflecting current SLS Act, Student Borrower Bill of Rights, and applicable federal requirements.
For companies uncertain whether their activities require a DFPI license, LOAA provides legal opinions analyzing the company's specific functions, loan types, and relationships with loan owners and borrowers against the SLS Act's statutory definitions and available exemptions.
LOAA represents student loan servicers in DFPI examinations, investigations, and administrative enforcement proceedings, as well as related CFPB and FTC matters, providing coordinated defense across overlapping state and federal jurisdiction.
Law Offices of Alan Abergel, P.C. represents companies that service student loans on behalf of loan owners, investors, guaranty agencies, and financing providers, from DFPI license applications, regulatory compliance, and enforcement action defense. Contact LOAA to discuss your student loan servicing business legal services needs.
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content. Every legal matter is unique, and you should consult directly with a qualified attorney regarding your specific circumstances.
"I engaged Alan to help me through the complexities of obtaining my Lenders License. He was very knowledgeable about the process and provided me with a high level of service.I worked quickly getting him all the information needed and he worked at my pace. He was responsive to e-mails and questions and followed up with the DFPI to make sure everything was filed correctly.I had read online that this process could take as long as 6 months however Alan completed the assignment in less than 3 I will be retaining his services in the future to ensure my company remains in compliance."
-Petroleum Realty Group Inc.
"I hired Alan to represent me as a mortgage broker before the California Department of Real Estate. I couldn't be more pleased with Alan's services from start to finish. Alan was clear and concise. Alan's communication throughout the process was professional. I received the results I hoped for. Thank you Alan. I'll definitely recommend you to ALL and use your services again in the future shall I need anything!"
-Anonymous
"Very helpful in assisting in obtaining an OCCC Texas Motor Vehicle Sales Finance License. Very knowledgeable in answering all questions the OCCC asked for on their questionnaire. Highly recommended and would re-hire for any future assistance regarding motor vehicle and finance business. God Bless!"
-Raul
