Private postsecondary schools that offer education financing to California residents had to register with California's Department of Financial Protection and Innovation by 15 February 2025. In June 2025 the department clarified that tuition-only plans count, even with no interest or fees. Public and private nonprofit schools are exempt.
What changed?
California has required providers of postsecondary education financing to register since a 2020 law. In February 2025 the DFPI told private postsecondary schools that this includes them if they offer financing to California residents. Applications from providers already operating were due by 15 February 2025. (Duane Morris, February 2025; the DFPI repeated the notice in its July 2025 bulletin)
Does a 0% tuition plan count?
Yes. In a June 2025 notice the DFPI said that tuition-only payment plans, including those with no interest or finance charges, meet the definition of education financing and need registration. (DFPI bulletin, July 2025; Duane Morris summary)
Education financing is defined broadly: credit extended to pay for postsecondary education and the cost of attendance, including tuition, fees, books and supplies, room and board and transportation.
Who is exempt?
- Public postsecondary institutions.
- Private nonprofit institutions.
For-profit schools, including trade, career and vocational schools, are the main group affected.
What does it involve?
Registration with the DFPI, and ongoing data the DFPI's regulations ask registered providers to submit. Penalties for operating without registering can run to thousands of dollars a day, so check the DFPI's current rules for what the application and the annual report require.
What should a California school keep on file?
- Its registration and any correspondence with the DFPI.
- The current version of every enrollment agreement and plan term it offers.
- A record of each student's plan: amount, schedule, payments and changes.
Questions to take to your attorney
- Are we registered, and are our current plans covered by the registration?
- What must we report each year, and to whom?
- Do schools outside California that enroll California residents need to register?
Paycove keeps each student's plan, its schedule, payments and changes on record by campus, so the details are there when you need them.
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