Notice of Proposed Regulations: Student Loan Servicing Act

The California Department of Business Oversight has filed a Notice of Rulemaking Action with the Office of Administrative Law. The Commissioner of Business Oversight is proposing to adopt regulations to implement the Student Loan Servicing Act.  Specifically, the Commissioner proposes to adopt Sections 2032-2057 in Subchapter 15, Chapter 3, of Title 10 of the California Code of Regulations.

The Student Loan Servicing Act authorizes the Commissioner to license, regulate, and oversee student loan servicers. The Student Loan Servicing Act took effect on January 1, 2017, and becomes operational on July 1, 2018. Prior to enactment of the Student Loan Servicing Act, student loan servicers were not subject to oversight by the Department. A copy of the Notice, Initial Statement of Reasons, and proposed Text can be found on the Department of Business Oversight’s website Laws and Regulations – Student Loan Servicing Act.

The deadline to submit comments is November 6, 2017. Comments may be e-mailed to regulations@dbo.ca.gov.