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Public Act 096-0880
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| SB1698 Re-Enrolled |
LRB096 11142 NHT 21510 b |
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the Task |
Force on Higher Education Private Student Loans.
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Section 5. Legislative findings. The General Assembly |
makes all of the following findings: |
(1) Today, private loans constitute 20% of total |
education loan money, whereas 10 years ago private loans |
constituted 5% of student loans. |
(2) Tuition at public universities has risen 57% in the |
past 5 years. |
(3) Between 2000-2001 and 2005-2006, private student |
loan volume grew at an average rate of 27% to a total of |
$17.3 billion. |
(4) Borrowers who do not complete their degrees are 10 |
times as likely to default on their loan and twice as |
likely to be unemployed. |
(5) Predatory and subprime lending practices have |
caused a crisis in the housing and real estate industry, |
and it is the interest of all parties involved to avoid a |
similar crisis involving private student loans.
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Section 10. Creation of Task Force. There is created the |
Task Force on Higher Education Private Student Loans consisting |
of all of the following members: |
(1) One member each appointed by the President of the |
Senate, the Minority Leader of the Senate, the Speaker of |
the House of Representatives, and the Minority Leader of |
the House of Representatives. |
(2) One member appointed by the Chairman of the |
Illinois Student Assistance Commission to serve as |
chairperson of the Task Force. |
(3) One member appointed by the Attorney General. |
(4) Four members appointed by the Governor as follows:
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(A) One member representing a banking |
organization. |
(B) One member representing private schools and |
universities. |
(C) One member representing a student loan |
corporation.
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(D) One other member. |
(5) The Chairman of the Board of Higher Education or |
his or her designee. |
(6) The State Treasurer or his or her designee to serve |
as the co-chairperson of the Task Force. |
(7) The Secretary of the Department of Financial and |
Professional Regulation or his or her designee.
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Section 15. Duties. The duties of the Task Force on Higher |
Education Private Student Loans shall include without |
limitation all of the following: |
(1) To investigate the rates, fees, and terms |
associated with private student loans made to students in |
this State. |
(2) To investigate how rates, fees, and terms impact |
the accessibility of private student loans, affordability |
of student loans, and choice of institution students have. |
(3) To investigate the impact rates, fees, and terms |
have on students after graduation, specifically the |
following:
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(A) The amount of debt they carry. |
(B) The impact on pursuing post-graduate degrees. |
(C) The ability to repay their loans. |
(4) To investigate the relationship between rising |
tuition and the availability of private loans. |
(5) To assess the impact of capping private student |
loan fees charged by lenders. |
(6) To investigate how many private student loans are |
in default or are not able to be repaid. |
(7) To investigate what rates, fees, and terms are |
common to those private student loans in default. |
(8) To assess what impact loan defaults have on lending |
institutions. |
(9) To assess the impact a loan default has on the |
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borrower. |
(10) To study what additional disclosures can be made |
to students regarding high risk loans, financial |
information, financial choices, and financial aid |
available. |
(11) To investigate what higher education institutions |
can do to advise students on their financial aid and loan |
resources. |
(12) To investigate if race and ethnicity are a factor |
in the rates, fees, and terms associated with private |
student loans.
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Section 20. Task Force assistance. The Office of the |
Illinois Student Assistance Commission shall be responsible |
for administrative and logistical support of the Task Force on |
Higher Education Private Student Loans, including coordination |
of Task Force member appointments, distribution of meeting |
notices and minutes, coordination of meeting logistics, |
facilitation of public meetings, and the drafting and filing of |
the report under Section 25 of this Act. Task Force members or |
staff liaisons or both may confer and collaborate with relevant |
State and national organizations with expertise.
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Section 25. Report; dissolution of Task Force. The Task |
Force on Higher Education Private Student Loans shall report |
its findings and recommendations to the General Assembly by |