Section 1044 - [Operative 2/15/2025] Annual Reporting - Education FinancingIf the registrant offers or provides education financing under its registration, the registrant's annual report shall include the following information relating to education financing contracts entered into with California residents in the prior calendar year:
(a) The number of education financing contracts entered into with California residents during the prior calendar year, and, of those contracts, the number of contracts with income-driven repayment provisions.(b) For the education financing contracts without income-driven repayment provisions entered into with California residents in the prior calendar year: (1) The total dollar amount advanced under those contracts.(2) The total dollar amount that would be required to pay off those contracts at origination.(3) A frequency distribution table of the annual percentage rates disclosed for the contracts pursuant to Regulation Z (12 C.F.R. § 1026.18) promulgated by the Consumer Financial Protection Bureau.(c) For education financing contracts with income-driven repayment provisions entered into with California residents in the prior calendar year:(1) The total dollar amount advanced by the registrant under those contracts. For the purposes of calculating the dollar amount advanced where the registrant is also the provider of the education program(s) to the resident, the registrant shall add the cash price of the education program(s) for which financing is provided to the payments made directly to residents under the financing contract for books and supplies purchased from third parties, room and board, transportation, and miscellaneous personal expenses. The registrant shall subtract from the resulting amount any payments made or to be made by residents for the educational program(s) that are not required payments under the financing contract. For the purposes of calculating the cash price of an education program provided remotely, the registrant shall use the lowest available cash price for the remote program offered by the registrant in any United States jurisdiction, regardless of whether that cash price is available to California residents.(2) A frequency distribution table of the annual percentage rates disclosed for the contracts pursuant to Regulation Z (12 C.F.R. § 1026.18) promulgated by the Consumer Financial Protection Bureau (if applicable).(3) The total dollar amount that would be required to pay off the contracts at origination.(4) If any of the contracts have an income threshold below which no payments are required, a frequency distribution table showing the amount of the income threshold(s) and the number of contracts to which each income threshold applies.(5) If any of the contracts have a time threshold above which no payments are required, a frequency distribution table showing the length of the time threshold(s) and the number of contracts to which each time threshold applies. The registrant shall also include a description of any contract provisions that result in an extension of a contractual time threshold and a frequency distribution table showing the number of contracts to which each contractual provision applies.(6) A frequency distribution table showing the percentage(s) of income that residents must pay under the contracts and the number of contracts to which each percentage applies.(7) A frequency distribution table showing the maximum number of payments required under the education financing contracts and the number of contracts to which each maximum number applies. The registrant shall also include a description of any contract provisions that result in an increase in the maximum number of payments required and a frequency distribution table showing the number of contracts to which each contractual provision applies.Cal. Code Regs. Tit. 10, § 1044
Note: Authority cited: Sections 90009 and 90010, Financial Code. Reference: Sections 90003, 90005, 90006, 90009, 90009.5, 90010 and 90018, Financial Code.
1. New section filed 10-11-2024; operative 2/15/2025 (Register 2024, No. 41).