Section 1003 - [Operative 2/15/2025] Definitions - Education FinancingWith respect to education financing, these terms shall have the following meanings:
(a) "Charges" mean any interest, fees, bonuses, commissions, gratuities, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by a person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, and enforcing of an education financing agreement, or any other service rendered. For purposes of this definition, "charges" include amounts received by a person from a consumer for payment of optional or discretionary services elected by the consumer in connection with education financing.(b) "Education financing" means credit extended for the purpose of funding postsecondary education and the cost of attendance at a postsecondary institution, including, but not limited to, tuition, fees, books and supplies, room and board, transportation, and miscellaneous personal expenses.(c) "Gratuity" means an optional payment made by a consumer to a person providing education financing to the consumer that does not affect the service rendered by the provider to the consumer.(d) "Income-driven repayment" means any arrangement in which the consumer's periodic payment obligation is based upon the consumer's income or employment status. Income-driven repayment does not include arrangements in which the consumer's payment obligation is deferred during certain periods specified by the education financing agreement, such as when the consumer is unemployed or pursuing education, unless the agreement provides that after the completion of a deferment period the amount of the consumer's periodic payment obligation can vary based upon the consumer's income.(e) "Postsecondary education" means an educational program that primarily serves or whose instruction is designed for students who have completed or terminated their secondary education or are beyond the compulsory age of secondary education, including a program whose purpose is academic, vocational, or continuing professional education. Postsecondary education is not limited to programs where a student receives a degree or certificate upon completion of the program.(f) "Postsecondary institution" means any person that provides postsecondary education to California residents.Cal. Code Regs. Tit. 10, § 1003
Note: Authority cited: Section 90009, Financial Code. Reference: Sections 90003, 90005 and 90009, Financial Code.
1. New section filed 10-11-2024; operative 2/15/2025 (Register 2024, No. 41).