Student Loan Servicers: What Consumers Need to Know

Consumer Information

Student Loan Servicer complaints will be accepted starting July 1, 2018.

When the Student Loan Servicer Program opens on July 1, 2018, the Department will provide support to help address inquiries and complaints related to servicing issues. Until then, if you are unable to resolve a dispute by 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
Consumer Complaints
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


Student Loan Consumer Advisory (PDF, 2017)

Links to Related Consumer Laws

Assembly Bill 38 (Stone, Chap 379, Stats. 2018)

This bill amends the Student Loan Servicing Act to clarify who is covered under the Student Loan Servicing Act, and to streamline the process for licensing and regulating student loan servicing in California. Among other things, the bill exempts guarantee agencies and debt collectors, as defined.

Assembly Bill 461 (Muratsuchi, Chap. 525, Stats. 2017) This new law excludes from gross income, for taxable years 2017 through 2021, student loan debt that is cancelled under income contingent repayment plans for public service and other employees administered by the U.S. Secretary of Education.

Assembly Bill 1178 (Calderon, Chap. 448, Stats. 2017) This new law requires, commencing with the 2018-19 award year, that each higher education institution, except for the California Community Colleges, to the extent possible, send an individualized letter to their students regarding information on their student loans.

Assembly Bill 2251 (Stone, Chap. 824, Stats. 2016)

This bill adds a new Division, the “California Student Loan Servicing 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.

Assembly Bill 3212 (Irwin, Chap 555, Stats. 2018)

This bill expands the service members who are entitled to certain protections in the Military and Veterans Code when on active military duty. The bill also expands the protections available to active service members regarding financial and other obligations including student loans.

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.