Student Loan Servicers: What Consumers Need to Know

Consumer Information

On January 2, 2018, the DBO began using the Nationwide Multistate Licensing System to manage Student Loan Servicer Licensees. Through NMLS Consumer Access, Consumer can look up entities to verify they are licensed. Additionally, you can find the mailing address, telephone number, email address and website information for the entity.

The Department will provide support to help address inquiries and complaints related to servicing issues.

Additional resources include some companies have ombudsman, and 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 law stablishes the Student Loan Servicing Act to provide for the licensure, regulation, and oversight of student loan servicers by the Commissioner of Business Oversight, who is the head of the Department of Business Oversight. The act prohibits a person from engaging in the business of servicing a student loan in this state without a license, unless the person falls within certain exceptions.

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 3212 (Irwin, Chap 555, Stats. 2018) This law provides that an application or receipt does not provide a basis for an annotation in a service member’s record by a creditor or a person engaged in the practice of assembling or evaluating consumer credit by identifying the service member as a member of the Armed Forces and prohibits the collection of any obligation from falsely claiming to be a member or civilian employee of the Armed Forces, or of a component, to include the actions of contacting the member’s military unit or chain of command without written consent.