Student Loan Servicing Program

The Department of Business Oversight (DBO) licenses and regulates Student Loan Servicers engaged in business in California. As part of this program, the DBO accepts complaints from borrowers and enforces violations of the underlying law, the Student Loan Servicing Act.  The Legislature approved the program in Assembly Bill 2251, which was signed into law by Governor Edmund G. Brown Jr. in 2016. The statute established state standards to ensure consistent, fair, and quality servicing for the more than 4 million Californians who have student loans. The Student Loan Servicing Act is in the California Financial Code, Division 12.5, commencing with section 28100.

What’s New

The Cover Letter (WORD) and the Student Loan Servicing Annual Report (PDF) are now available.

Student Loans: What Borrowers Need to Know

The Department of Business Oversight provides support to address inquiries and complaints related to student loan servicing issues. Please contact our Consumer Services Office or call 1-866-275-2677 for assistance, questions, or to file a complaint regarding issues with your student loan provider.

How to reach us:

Department of Business Oversight
Attn: Student Loan Servicing
1515 K Street
Sacramento, CA 95814

Phone: (916) 327-7585
Email: StudentLoanServicing@dbo.ca.gov

Application Process

Information on SLS licensing requirements is also available on NMLS, which allows companies to conveniently manage their Student Loan Servicer License(s) through a secure website. Please visit NMLS for additional information. View state Student Loan Servicer licensing requirements specific to the California Department of Business Oversight.

Frequently Asked Questions

As of July 1, 2018, the Department of Business Oversight (DBO) began licensing and regulate Student Loan Servicers engaged in business in California. As part of this program, the DBO fields complaints from borrowers and enforces violations of the underlying law, the Student Loan Servicing Act. The Legislature approved the program in Assembly Bill 2251, which was signed into law by Governor Edmund G. Brown Jr. in 2016. The statute established state standards to ensure consistent, fair, and quality servicing for the more than 4 million Californians who have student loans.

  1. How do I securely transfer electronic information or forms to the DBO?
  2. While most material will be submitted through NMLS, information can also be sent to StudentLoanServicing@dbo.ca.gov using a secure email system. If your company does not already have access to a secure email system please send a request to establish a secure link to StudentLoanServicing@dbo.ca.gov.

    For large files and examination information, a secure portal has been set up using Microsoft 365 One Drive. Please use the above email address to request a link be opened. This does require a Microsoft account. If you do not already have one, instructions on how to establish an account will be sent with the link. 

  3. What is the examination process?
  4. Each licensee is subject to a regulatory examination by the Department, whether or not any business has been conducted under the license. Examinations will be conducted as often as the Commissioner deems necessary and appropriate, but at least once every 36 months. The licensee is responsible for the cost, including travel expenses, of the examination. Licensees will receive a written request for information to be transmitted to the DBO through a secure portal prior to the start of the examination.

  5. If I already have a California DBO license with a different program, do I need a Student Loan Servicing License as well?
  6. Yes, you will need a separate Student Loan Servicing License. 

  7. How long does it take to process a background check? 
  8. The time needed to complete a background check depends on where the fingerprinting process is completed. California allows live scan electronic fingerprinting within the state. Background checks using this process take less time. 

    See below for estimated times:

    • In state – Five business days after the live scan is completed. 
    • Out of state – Up to 60 days from the date fingerprints are received by DOJ.
    • Out of country – Undeterminable, time frame will vary based on the country.

Last updated: Sep 13, 2019 @ 12:58 pm