Section 595.310  Repayment of Loan

a)         A recipient who fails to complete the degree due to academic failure or voluntary actions on his or her part must repay the loan to the State of Illinois beginning 6 months following termination of studies. A recipient who obtains a BSN, but fails to meet the forgiveness requirement as stated in Section 595.320 of this Part, must also repay the loan beginning 6 months following the completion of the BSN degree.

b)         A recipient who is subject to repayment shall enter into a repayment contract with the Department as soon as the status for payback has been established. This contract shall specify the amount due to be repaid, the schedule for repayment, and all other terms of the repayment. Interest charges shall be completely waived if the recipient repays the total loan amount prior to the first payment due date.

c)         In the event a recipient fails to pay monies owed to the Department, the Department shall refer the matter to the Attorney General or to a collection agency.  If the collection agency is unsuccessful, the Department shall refer the matter to the Attorney General. The total 6-year interest shall be due if the recipient fails to fulfill the repayment requirements and the case is settled through authorized agencies outside the Department.

(Source:  Amended at 17 Ill. Reg. 13746, effective August 10, 1993)