CA AB38

Revises the Student Loan Servicing Act to expand the Commissioner of Business Oversight's authority to deny student loan servicer licenses, including for false statements, dishonesty, fraud, deceit, regulatory violations, and civil judgments.

Requires applicants to appoint the commissioner as their attorney to receive service of process and mandates inclusion of an affidavit of compliance with service requirements.

Authorizes the commissioner to require applicants and licensees to file through and pay assessments to the Nationwide Multistate Licensing System & Registry, with authority to waive or modify requirements as needed for participation.

Redefines "student loan" to mean loans solely for postsecondary education and costs of attendance, and excludes debt collectors whose primary business involves collecting on defaulted student loans.

Extends licensee response time to qualified written requests from 5 to 10 business days and requires licensees to inquire how borrowers want overpayments applied to their loans.