AB 38, Mark Stone. Student loan servicers: licensing and
regulation: Student Loan Servicing Act.
Existing law, operative July 1, 2018, establishes 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. Under the act, a person
applying for a license, among other things, is required to pay an
application fee, sign the application under penalty of perjury, and
submit to a criminal background check by the Department of
Justice.