Section 2041 - Customer Service, Alternative Repayment Plans, Loan Forgiveness Benefits(a) Customer Service. All student loan servicer licensees, including servicers of federal student loans and private student loans, must prominently post, on the homepage of the servicer's internet website, a toll-free telephone number borrowers may call to discuss their student loans with a live person.
(1) Federal student loan servicer representatives answering calls to this toll-free number must have been fully trained about, and capable of informing and discussing with callers, alternative repayment plans and loan forgiveness benefits. If the caller calls to inquire about repayment options, federal student loan servicer representatives must inform and discuss with callers, alternative repayment plans and loan forgiveness benefits. Federal student loan servicer representatives must also be trained in the differences among deferment, forbearance, and alternative repayment plans, and able to answer caller questions regarding the differences.(2) Private student loan servicer representatives answering calls to this toll-free number must have been fully trained about, and capable of informing and discussing with callers, any alternative repayment plan offered by the servicer, promissory note holder, contractual obligee, or payee for the private student loans serviced ("Private Student Loan Alternative Repayment Arrangements"), in accordance with subdivision (c) below. If the caller calls to inquire about repayment options, private student loan servicer representatives must inform and discuss with callers, Private Student Loan Alternative Repayment Arrangements, in accordance with subdivision (c) below.(b) Publication of Federal Student Loan Repayment Options and Loan Forgiveness Benefits. (1) To assist the prevention of borrower delinquency or default, all servicers of federal student loans must prominently post, on the servicer's internet website, clear and complete information, written in easily understandable language, about repayment options available for federal student loans, including deferments and income-based alternative repayment plans, available under Title IV of the Higher Education Act of 1965, as amended, 20 U.S.C., § 1070, et seq. The posted information may appear on the servicer's homepage or be available through links on the homepage to specified web pages. The posted information shall include direct, live links to the following web pages, or successor or replacement web pages, of the Student Aid Office of the United States Department of Education website: "How to Repay Your Loans," https://studentaid.gov/manage-loans/repayment/plans; and https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief.(2) To assist the prevention of borrower delinquency or default, all servicers of federal student loans must prominently post, on the servicer's internet website, clear and complete information, written in easily understandable language, about loan forgiveness benefits available to qualifying federal student loan borrowers. The posted information may appear on the servicer's homepage or be available through links on the homepage to specified web pages. The posted information shall include direct, live links to the following web pages, or successor or replacement web pages, of the Student Aid Office of the United States Department of Education website: "How to Repay Your Loans," https://studentaid.gov/manage-loans/repayment/plans; and https://studentaid.gov/manage-loans/forgiveness-cancellation.(3) Annual Notice of Repayment Options and Loan Forgiveness Benefits.(A) At least once per calendar year, all servicers of federal student loans shall send to borrowers a plain language notice, containing the information or links to information regarding repayment and loan forgiveness options for federal student loans required under this rule. This notice shall also include the toll-free telephone number to call to discuss federal student loans with a live person.(c) Private Student Loans.(1) Publication of Private Student Loan Alternative Repayment Arrangements. Servicers of private student loans must provide borrowers clear and complete information, written in easily understandable language, about Private Student Loan Alternative Repayment Arrangements.(2) Properly Evaluating Private Student Loan Alternative Repayment Arrangement Requests from a Borrower. Servicer shall establish policies and procedures, and implement them consistently, in order to facilitate disclosure of Private Student Loan Alternative Repayment Arrangements, including:
(A) Providing accurate information regarding any Private Student Loan Alternative Repayment Arrangements that may be available to the borrower through the promissory note or contractual agreement, that may have been marketed to the borrower through marketing materials, or that have been widely advertised or marketed by the servicer, original lender, promissory note holder, contractual obligee, or payee as available to similarly-situated borrowers; and(B) If Servicer offers Private Student Loan Repayment Arrangements, servicer shall consistently present and offer those arrangements to borrowers with similar financial circumstances.(C) Servicer may satisfy the requirements of (A) and (B) above by demonstrating that servicer has made reasonable efforts to obtain information from the original lender, promissory note holder, contractual obligee, or payee about Private Student Loan Alternative Repayment Arrangements that may have been marketed to the borrower through marketing materials, or that have been widely advertised or marketed by the servicer, original lender, promissory note holder, contractual obligee, or payee as available to similarly-situated borrowers.(3) Annual Notice of Private Student Loan Alternative Repayment Arrangements. Servicer shall provide eligible borrowers with a single-page notice at least once per calendar year, which includes a plain language description of all Private Student Loan Alternative Repayment Arrangements for which the borrower is eligible, consistent with the policies and procedures established by servicer, pursuant to Financial Code section 28130, and this rule. This single-page notice shall also include the toll-free telephone number to call to discuss student loans with a live person.(d) All student loan servicer licensees shall send to borrowers the notification required to be sent to borrowers once per calendar year, under Financial Code section 28130, and this rule, by the preferred method of communication indicated by the borrower (email, or regular mail through the United States Postal Service). If the borrower has not indicated a preferred method of communication, the servicer shall send this information by regular mail, through the United States Postal Service, to the borrower's last known mailing address on record. If the notification is returned as "undeliverable" by the United States Postal Service, the servicer shall send borrower the required notification to the email address(es) servicer has on record for the borrower.Cal. Code Regs. Tit. 10, § 2041
Note: Authority cited: Section 28106, Financial Code. Reference: Section 28130, Financial Code.
1. New section filed 3-28-2019; operative 3/28/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).
2. Amendment of subsections (a)(1)-(2), (b)(1)-(2), (c)(1), (c)(2)(A), (c)(2)(C), (c)(3) and (d) filed 10-4-2023; operative 1/1/2024 (Register 2023, No. 40).