CA AB376

Establishes California Student Borrower Bill of Rights requiring student loan servicers to post and credit payments timely, apply overpayments to borrower's best financial interest, apply partial payments to minimize late fees, maintain records for 3 years after loan payoff, and respond to borrower requests within specified timeframes.

Prohibits student loan servicers from engaging in unfair, deceptive, or abusive acts, including misrepresenting loan terms, failing to accurately report payment performance to credit agencies, and misrepresenting programs or protections available to military borrowers, public service workers, older borrowers, and borrowers with disabilities.

Requires specialized training for customer service personnel advising military borrowers, public service workers, older borrowers, and borrowers with disabilities about repayment benefits and protections.

Establishes Student Loan Ombudsman position within Department of Business Oversight, effective July 1, 2021, to receive and review complaints, refer complaints to appropriate agencies, and submit annual reports to Legislature on student loan issues.

Allows consumers to sue student loan servicers for violations, recover actual damages (minimum $500 per violation), injunctive relief, punitive damages, attorney's fees, and treble damages ($1,500 minimum) for interference with loan forgiveness or alternative payment arrangements; requires 45-day notice period before filing suit.