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

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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).
Note: Authority cited: Section
						1788.103, Civil
						Code; and Section
						28106,
						Financial Code. Reference: Section
						1788.102, Civil
						Code; and Section
						28130,
						Financial Code.