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Compliance, Risk & Account Status

Understand the key compliance frameworks, account status terms, and regulatory obligations that govern student loan servicing.

Lesson 1 of 8

TCPA (Telephone Consumer Protection Act)

A federal law restricting how lenders and servicers may contact borrowers by phone and text. Servicers must obtain "prior express consent" from borrowers before using automated dialing systems (autodialers), prerecorded voice messages, or text messages — particularly to cell phones. Consent is typically established when the borrower provides their phone number on a credit application, promissory note, or account agreement. Revocation of consent must be honored promptly.

Why it matters in servicing

Violations can result in statutory damages of $500–$1,500 per call or text. Servicers must maintain do-not-call lists, honor opt-outs, and document when and how consent was obtained for each number on record. Outbound call and texting programs must be reviewed against TCPA requirements before deployment.