California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 15 - Student Loan Servicing Act
Article 5 - Borrower Protections
Section 2040 - Borrower Information and Statements of Account, Payment Processing, Co-signer Payments

(a) The student loan servicer licensee shall maintain on its internet website, free of charge, complete, detailed information and account records for each student loan borrower. This information and accounting shall be accessible to the borrower only, through a secure log-in system. This information shall include a consolidated report, for each student loan borrower, and a loan history, for each loan serviced. This information and accounting shall be available to borrowers at all times, except for occasional, short periods of time when the servicer's system is not available because the system is undergoing routine maintenance or blocked for security reasons.

(b) The consolidated report required to be maintained must include the information specified in section 2042, subdivision (b), or section 2042.65, subdivision (b), and subdivisions (c), (d) or (e), as applicable, of these rules.

(c) The loan history for each loan serviced must include the information specified in section 2042.5, subdivision (c), or section 2042.75, subdivision (c), of these rules.

(d) A licensee shall credit any electronic (on line) payment made to a borrower's account on the same business day the payment is electronically paid by the borrower, if paid before the daily cut off time for same day crediting posted on the servicer's website, or the next business day, if after the posted cut off time. If a payment is made with check, the licensee shall credit the payment on the date received by the licensee, regardless of the date of processing. Borrowers' on line accounts shall reflect payments made, within three business days of the date of payment, unless payment is made by check and contains no information identifying to which account or loan the payment should be credited. In the event servicer receives a paper check with no information identifying to which account or loan the payment should be credited, the servicer may take a reasonable amount of time, not to exceed ten business days, to research the issue and determine to which account and loan the payment should be credited. When the servicer determines to which account and loan the payment should be credited, the servicer shall credit the payment as of the date the payment was received by the servicer, and update the borrower's on line account within one business day.

(e) Servicers must provide a specific process, clearly explained on the servicer's website, which student loan co-signers may follow to apply co-signer payments to co-signed loans. Provided co-signers follow the specific process specified by servicers, servicers must follow the elections made by a student loan co-signer regarding the application of co-signer payment(s).