Bill
AB 866
AB 866 imposes new state-level oversight and operational standards on student loan servicers to protect California borrowers from mismanagement and ensure transparent account handling practices.
AB 866 establishes new regulations and oversight requirements for student loan servicing companies operating in California. The bill aims to protect borrowers by imposing standards on how servicers manage accounts, handle payments, and communicate with students about their loans.
Student loan servicers manage billions in debt for California borrowers, and complaints about misapplied payments, poor communication, and regulatory violations are common. This bill directly affects the daily experiences of millions of Californians with outstanding student loans and could influence industry practices statewide.
Compiled from official sources — confirm details with the bill’s official record.
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