Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(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.
Note: Authority cited: Section
28106,
Financial Code. Reference: Section
28130,
Financial Code.
