The regulations will take effect Jan. 1, 2024, to oversee education financing products and servicers of those products.
10/13/2023 11:25 A.M.
1 minute read
The California Department of Financial Protection and Innovation (DFPI) has issued final regulations to implement the Student Loan Servicing Act and the Student Loans Borrower Rights Law that will take effect Jan. 1, 2024.
The DFPI updated the original proposed rules and changed the text twice to ensure the regulations were consistent with servicers’ operations and businesses, according to its monthly bulletin.
Its goal in developing these new rules is to “include all education financing products used to finance a student’s higher education, including income share agreements and installment contracts, within the definition of student loans subject to state law.” The rules also include servicers of these products subject to the Student Loan Servicing Act and licensing.
The DFPI expects the regulations will provide protective benefits to student loan borrowers with education financing products, improved regulatory oversight of the student loan servicer industry, and strengthened enforcement of the recent state laws regarding student loan servicing.
The 2018 Student Loan Servicing Act expanded the authority of the DFPI commissioner to include the licensure, regulation and oversight of student loan servicers, ACA International previously reported. The Student Loans: Borrower Rights law of 2021 added to the act’s student borrower protections.
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