California Loan Services Bonds

Businesses licensed to service student loans in California must furnish a Student Loan Servicer Bond. This surety bond is required pursuant to the “Student Loan Servicing Act” (California Financial Code Division 12.5, section 28100, et seq.) for all persons engaged in the business of servicing student loans in the state of California. The bond is filed electronically via the NMLS. The surety bond amount is based on loan service volume as follows; 0 - $50,000,000 in loan volume requires a $25,000 bond, $50,000,001 - $100,000,000 in loan volume requires a $50,000 bond, $100,000,001 - $250,000,000 in loan volume requires a $75,000 bond, and over $250,000,000 in volume requires a $100,000 bond.