In 2020, California's Legislature passed the California Consumer Financial Protection Law (CCFPL) as AB 1864. This law provided the Department of Financial Protection and Innovation (DFPI) with authority to oversee several areas of the financial marketplace, including private postsecondary education financing.
DFPI recently finalized new regulations requiring providers of postsecondary education financing to register and submit data to DFPI. Providers subject to registration requirements must file an application by February 15, 2025.
The DFPI is requesting all postsecondary institutions to do one of the following:
- If you are a postsecondary institution that offers or provides education financing to California residents and required to register, please file an application for CCFPL registration by February 15, 2025, to continue operating legally in the state.
- If you are a postsecondary institution that offers or provides education financing to California residents through a partnership with a third party, please alert any third-party partners of this registration requirement and send an email to CCFPL.Inquiries@dfpi.ca.gov explaining why you do not intend to register.
- If you are a postsecondary institution that is not subject to this registration requirement, please send an email to CCFPL.Inquiries@dfpi.ca.gov explaining why you do not intend to register.
Under the CCFPL, no person shall engage in the business of offering or providing postsecondary education financing to California residents without first registering with the DFPI. Postsecondary institutions should contact counsel to determine if their educational financing (including providing institutional loans) triggers registration.
For More Information
If you have any questions about this Alert, please contact any of the attorneys in our Higher Education Group or the attorney in the firm with whom you are regularly in contact.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
