# California Student Loan Servicer License Bond

Source: https://a1suretybonds.com/california/student-loan-servicer-bond

## Key facts

- State: California
- Term: 1 year
- Apply online: https://a1suretybonds.com/application/index/8617/5

The State of **California Department of Financial Protection and Innovation ** started regulating Student Loan Servicers who are operating as a Qualified Education Loan Servicer. The Student Loan Servicing Act requires any person who engages in the business of servicing a student loan in the state of CA to be licensed if they are engaged in any of the following activities related to a student loan:

1. Performing both of the following:

- Receiving any scheduled periodic payments from a borrower or any notification that a borrower made a scheduled periodic payment.
- Applying payments to a borrower’s account pursuant to the terms of the student loan or the contract governing the servicing.

2. During a period when no payment is required on a student loan, performing both of the following:

- Maintaining account records for the student loan.
- Communicating with the borrower regarding the student loan on behalf of the owner of the student loan promissory note.

3. Interacting with a borrower related to that borrower’s student loan, with the goal of helping the borrower avoid default on his or her student loan or facilitating the activities described in paragraph 1 or 2 of the [CA SLS Act Requirements](https://dfpi.ca.gov/student-loan-servicing-program/student-loan-servicing-sls-act-requirements/#WhoisRequired)

Licensees must post and maintain a surety bond payable to the commissioner in an amount that corresponds with the dollar amount of loans serviced during the previous calendar year.

| **Dollar amount of Loans Serviced ** | Bond Amount Required | Surety Bond Cost* |
| --- | --- | --- |
| 0 - $50,000 | $25,000 | $250 per year |
| $50,001 - $100,000 | $50,000 | $500 per year |
| $100,001 - $250,000 | $75,000 | $750 per year |
| Over $250,000 | $100,000 | $1000 per year |

**Bond cost are dependent upon qualification of applicant(s)*

For licenses with multiple license locations, only one surety bond is required that covers the aggregate requirement for all locations.

Please see the [CA DFPI Student Loan Servicing (SLS) Act Requirements](https://dfpi.ca.gov/student-loan-servicing-program/) for more detailed information on the license and bonding requirements.

California Student Loan Servicer License Bond

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A1 Surety Bonds (The Surety Syndicate, LLC), a nationwide surety bond agency · (800) 737-4880 · info@a1suretybonds.com · https://a1suretybonds.com
Requirements are set by each state or agency and can change; the obligee's current instructions and the law control.