The California legislature is poised to pass additional protections for student loan borrowers, joining the ranks of states that have increased scrutiny of loan servicers as they argue the Trump administration has failed to do so.

A bill that would increase the California Department of Business Oversight’s student loan servicers and provide more avenues for borrower complaints is expected to pass the state Senate when it reconvenes in January and be signed into law by Gov. Gavin Newsom (D).

California would follow states including New York and New Jersey that have moved to rein in the student loan servicing industry,...